Hard to Find Staff? Why Reducing Your Payroll Can Increase Your Profits at the Same Time

Written By
Jon Mailer

CEO & Founder – PROTRADE United

If you are one of the many businesses that are challenged to find quality employees, have you thought of an alternative?

Some business owners are having a challenge finding quality employees

Some business owners are having a challenge finding quality employees

The seven most dangerous words in business are “that’s the way we’ve always done it.”

Continually complaining and stating that, “I just need more staff to become more profitable,” may seem like the logical solution yet could also be attempting to fit a square peg into a round hole.

Business Model

Over the past 12 months, we have assisted many clients at PROTRADE United to alter their business model and specialise in a particular niche within their industry. This has allowed them to deliver profitable projects with less people, and as a by-product, dramatically improve their business’s net profit margin and take-home cash.

Less is More

The mantra here is: Less = More. In particular, less of the employees that cause you headaches.

All too often, we see hardworking business owners who feel like they’re being held to ransom by certain employees that are infecting the team with bad attitudes and behaviours. This not only reduces morale, but it also impacts productivity and bleeds valuable profits.

You know the type of person I am talking about. This employee is adequately, or in some cases highly skilled and can produce results. However, their bad attitude, negativity, gossip, continual whining and moaning impacts the rest of the team and consumes valuable head space (free rent) in your mind.

You recognise that the right thing to do is to let this person go, as their behaviour is like a virus. It impacts team morale, since no one wants to work with this team player, it also has others on the team question your leadership and they may look elsewhere for employment. If you allow fear and scarcity to control your decision, you will hang on to this person as the illusion is that you need their skills.

Yet, through experience and observation of businesses that I have coached, letting this person go is one of the best things you can do for yourself, your team, and the business.

Here is why…

Written By
Jon Mailer

CEO & Founder – PROTRADE United

Article Continues

Who are PROTRADE United?

Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.

Are you next?

Who are PROTRADE United?

Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.

Are you next?

Article Continues

Why it Makes Sense

As soon as they are gone, there will be a collective sigh of relief from your team. Your team will also share with you other aspects of how this person’s bad behaviour has impacted the team. It’s almost like all their skeletons tumble out of the closet.

Secondly, the rest of the team will step up, to cover for their short fall because they’ll respect your decision for letting them go.

Thirdly, it will be an absolute relief to yourself. Even though there may be short-term discomfort, by having less employees, you can finally sleep at night knowing this person is not continuing to infect your team, talk badly about the business and tarnish the image of you and the hard work that you have put in to develop your organisation.

Finally, the last reason, which loops back to the initial couple of paragraphs, you may realise that you do not need to replace this person and the business will save thousands annually, ultimately increasing the bottom line.

It requires courage as a business owner to let poor performers go, change your business model, and improve your processes. It is simple, yet not easy.

For guidance and coaching around your business model and team structure, connect with us at PROTRADE United.

Why it Makes Sense

As soon as they are gone, there will be a collective sigh of relief from your team. Your team will also share with you other aspects of how this person’s bad behaviour has impacted the team. It’s almost like all their skeletons tumble out of the closet.

Secondly, the rest of the team will step up, to cover for their short fall because they’ll respect your decision for letting them go.

Thirdly, it will be an absolute relief to yourself. Even though there may be short-term discomfort, by having less employees, you can finally sleep at night knowing this person is not continuing to infect your team, talk badly about the business and tarnish the image of you and the hard work that you have put in to develop your organisation.

Finally, the last reason, which loops back to the initial couple of paragraphs, you may realise that you do not need to replace this person and the business will save thousands annually, ultimately increasing the bottom line.

It requires courage as a business owner to let poor performers go, change your business model, and improve your processes. It is simple, yet not easy.

For guidance and coaching around your business model and team structure, connect with us at PROTRADE United.

What you’ll get in the complimentary 60 min session

Diagnostic Tool

Use a powerful diagnostic business tool, to understand the current reality

Identify the Obstacles

Uncover the obstacles that may be holding you back from more profits, time and freedom

Action Plan

Craft a realistic action plan to produce results in the next 6-12 months

Recommendations

Gain recommendations specifically designed for trades and construction businesses operating in Australia & New Zealand

Let’s Hit the Ground Running with a Business Performance Session
Would you like to gain greater clarity and consistency in your trades business? Book a complimentary ‘Business Performance Session´ with a trades business specialist and uncover what may be holding your business back.