How to improve the profitability of staff?

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Pages of many media are full of various reports on profitability, to put it simply, then the ratio of costs and profits. There are different types of profitability: the profitability of the asset, the profitability of sales, the profitability of staff and others.

In order to determine the profitability of any type, only profit and loss data will be required. In fact, we are talking about a coefficient that shows how much profit was received per one spent unit. Since the whole business is built specifically for profit, then in literate companies, the calculation of this coefficient is approached with all seriousness.

For any enterprise, the profitability of personnel is very important, which shows the efficiency of the work of the collective and allows controlling the costs of workers in accordance with the amount of profit received. To avoid a large number of costs for the workforce, use the optimization of the number of staff.

You can regulate profit taking in two ways:
1) increase profits,
2) reduce costs.

Obviously, the profitability of personnel in a highly competitive market in the sale of high-quality and demanded products refers to the second category of business optimization. To reduce staff costs, it is necessary first of all to identify the main flows leading to a cash outflow. Concerning the personnel - these are deductions to the wage fund, UST, expenses for TB, overalls, social packages and others. The variety of costs will fluctuate depending on the specifics of the work of the enterprise.

If the analysis of the profitability of the staff clearly shows the low efficiency of work, then it is necessary to optimize its number. In the course of this process, all costs are reduced without exception.

Proper optimization should take into account that the change in the number of personnel should not affect the quality and efficiency of products, but the costs should not exceed the established value. In addition, the profitability of staff shows a low value if the enterprise uses old equipment, produces unclaimed products on the market, or products of poor quality, and also if the enterprise does not switch to new more economical technologies. Often, it is the lack of costs for updating technologies and equipment that lower the profitability of staff, since in this case a much larger team is required to promote, repair and maintain old equipment. At the same time, the reduction in the number of personnel should not affect the speed, efficiency and quality of work.

The analysis of the profitability of the personnel already at the level of diagnostics can reveal jobs, without which the enterprise can do without. The second stage of optimization will be the determination of the minimum number of employees and the planning of reductions. Planning of reductions is a difficult stage of optimization. Here, it is very important to determine the "core of the core" (highly qualified specialists, without which the effectiveness of the work will fall) and the staffing periphery (part of the staff, most of the staff performing less significant functions). In this case, the profitability of the staff shows either understated or the same values that could be without a staffing periphery. Despite the fact that the workers of the latter perform their functions, in times of crisis without them it is possible to do.

The last stage is the conduct of reductions. Many enterprises carry out mass reductions in a "hard" way, after which a large number of lawsuits are filed against the management in court. To avoid such consequences, use a soft scheme of reductions, in which the processes of dismissal on their own are stimulated with the help of payments of decent severance payments.

Thus, the problem of profitability of personnel is very important for a good enterprise. The program for calculating this coefficient will not only significantly reduce costs, but also spend saved money to improve working conditions, purchase new equipment and other accessories that will contribute to better performance.