Inflation Protection: Outsource Labor Costs

Coveted’s third step to manage inflation aims to save your business money.

Outsource Labor Costs

With such a shortage in the labor market, employees are able to demand higher wages. Even the slightest increase in wages can make a huge difference.

For example, a laborer requests an increase of $2.00 on their $14.00/hour wage. This represents a 14.2% increase.

A 14.2% increase on a $100,000 monthly payroll is $170,400 per year.

Coveted Financial suggests outsourcing labor to better control labor costs. While a specialist in their field may cost more per hour, it is likely they are extremely efficient in their role. Additionally, outsourced labor does not come with the added costs of benefits like insurance and 401k.

Additionally, many companies will realize increased efficiencies with outsourced labor, as internal employees are able to focus on their responsibilities and new processes are utilized.

BONUS TIP: Automate to Increase Productivity

There has never been a better time to utilize automations in business. From new softwares to equipment, the increased production will quickly outweigh the upfront cost.

Coveted Financial works with businesses to produce accurate ROI reports for automation initiatives; working the purchase and implementation costs into a detailed cash flow analysis.

According to the Washington Post, not only do people not want to return to work, those who have returned are voluntarily quitting. "Some 4.3 million people quit jobs in August — about 2.9 percent of the workforce," quotes the Post. The change in worker's minds means it is time to think about how to continue without them.