Running a business finances and cost have be two of your major concerns. You need to make sure that youre not running a business model where you are constantly bleeding money. If you do this, your business is going to fail sooner rather than later. There are many businesses that collapse or close and many cannot deal with the heavy costs that they never saw coming. So, where do these costs come from? Well, there are lots of reasons for heavy costs that weigh down a company. Its possible that there is too much wastage in the business model. If youre wasting time or resources, your business is going to be put under immense pressure to increase efficiency levels. You might also find that heavy costs are due to poor money management. Its possible that youre making a lot more money than you realise. But unfortunately a lot of it is being lost because its being used in the wrong sections of your business.
Of course, one of the main issues that cause heavy costs is the workforce. Believe it or not, your employees can end up costing your business an absolute fortune for a variety of reasons. They might be underskilled meaning that they take longer to complete jobs and deliver a lower quality output, losing you customers. They might even target your business and turn against you if you dont treat them the right way. So, you do need to think about how to avoid employees becoming your worst weakness instead of your greatest strength. To do that, were going to look at the dangerous areas and think about how to avoid disaster.
Every year businesses are snowed under with accidental injury claims from employees. If you havent had an accidental injury claim from one of your workers, brace yourself because it will be coming. It doesnt matter whether you have the safest office in the city. One mistake, an employee slips and its hello lawsuit. Now, there are some things to take into consideration here. First, it is quite likely that youll have some form of workers compensation. If thats the case, you might find that employees are unable to put a lawsuit at your feet. But it does depend on the extent of the injury and the type of insurance coverage that you have in place. Without the right coverage, its possible that you will have to pay most of the compensation out of your own pocket.
There is the chance that if a case like this does go to court, you can escape paying for the injury. Premises liability dictates that you are accountable for any accident that occurs on your property. But, there are a few exceptions. For instance, the accident could have been completely unpreventable. This will be the case if a piece of equipment failed spontaneously after being checked for any faults. The check is important so make sure all equipment in your office is being checked on a daily basis. You can not escape accountability through ignorance. If someone slips in a stairwell because a light flickers you can not say you didnt know the bulb was nearly dead. This defence will only earn you a larger fine.
It is true that in some cases employees intentionally aim to get injured so that they can sue. Its not as common as people think but it definitely does happen. As such, it is worth keeping employees on your side as much as possible. That way you can avoid making an enemy of the people working underneath you.
Its possible that you have to pay up for your employees because you breached regulations or managed to find yourself on the wrong side of the law. This could occur if you attempt an unlawful deduction of wages. Ironically, business owners usually do this if they want to earn back money that they have lost due to the actions of an employee. For instance, it may be that you have put a lot of money into training an employee. Yet, they have failed to gain the certificate in the role they were being trained for. Thats a loss for you and one you might seek to make back by cutting wages. However, this is unlawful and will earn you scrutiny in the courts.
If you are thinking about pay deductions, you need to make sure that the employee agrees to it. Ideally, they should have signed a contract stipulating as much. But even then you might find that an employee could argue against it.
This of course, is not the only way an employer could be affected by regulations. For instance, you might find that you are forcing employees to work in a way that isnt safe. Employee typing at computers should be encouraged to take regular breaks. If theyre not taking breaks you might want to force them to and avoid the possibility of RSI. RSI is caused when people type for long periods with poor posture. The chronic pain can be severe and often leads to payouts worth hundreds of thousands.
Alternatively, it is possible that its your employees are the ones breaking the law. Did you know that a large percentage of thefts that occur from companies are conducted by an employee within the business. It makes sense when you think about it because your employees would know how to access important files, swipe data and get through security locks. How can you prevent this type of loss in your business? Well, you need to be careful about who you trust in your company. You might also want to think about keeping a watchful eye on your employees. With the latest software its possible to see exactly what theyre doing without looking over their shoulder. Or, perhaps, you should think about getting a proper insurance plan in place. That way, even if a theft does occur, your company will be protected. Insurance premiums that cover this type of damage are pricey. But it will be worth it if it ensures that stealing doesnt bury the prospects of your business.