Tom Brink with JBS Five Rivers Cattle Feeding says labor cost for their operations has increased 30% in 10 years, even after operating with fewer employees. The main reason for the increase is due to competition for skilled employees.
So what are some ways to help control cost? Brink recommends:
- Evaluate all staff positions and eliminate/consolidate where possible.
- Make sure all full-time positions are truly full-time.
- Use technology to reduce labor needs.
- Eliminate unnecessary travel, meals, etc.
- Pay performance incentives.
- Keep best performers moving ahead with additional training, increased responsibilities as well as increased compensation.
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