🤑 Ever thought about the real cost of not keeping a tight grip on people expenses during live events? Spoiler: it's a lot! Let’s break it down with a real-life example. Imagine a mid-sized company organizing a three-day music festival with 200 employees. Here’s what can go wrong: ⏰ Tracking Time Inaccurate clock-in/out records can lead to sneaky overtime costs. If 10% of employees (20 people) each clock an extra hour daily at $20/hour, that's an extra 60 hours over three days. That means $1,200 per day, totaling $3,600 for the event. Add in any additional payroll taxes and benefits, and you're easily looking at $4,000 gone! 💵 Payroll Accuracy Misclassifying hours and incorrectly calculating overtime can be costly. If 5% of the total hours worked (300 hours) are misclassified, resulting in incorrect overtime payments, this could lead to overpayments. Assuming an overtime rate of $30/hour, that's an extra $9,000 in unexpected costs. ➕Anticipating Overtime Not planning for OT can lead to last-minute hires at higher rates. If 20 employees each require two hours of overtime daily, that's 120 overtime hours over three days. At an overtime rate of $30/hour, this could result in an additional $3,600 in expenses. Factor in rush hire fees or premium rates, and you might end up paying another $2,400. ✌🏼No-Show Incidents No-shows are a headache and replacements cost more. If 5 employees no-show each day and replacements cost an additional $50/hour, that's 40 hours over three days at $50/hour, totaling $2,000. Add in administrative costs and other penalties, and this could easily add another $1,000, making it $3,000. 💪🏼Employee Performance Poor performance leads to inefficiencies, longer hours, and higher costs. If inefficiencies lead to 10% more work hours (300 extra hours) and assuming an average wage of $20/hour, that's an additional $6,000 in labor costs. All these factors combined can lead to a total loss of up to $14,600 in just three days! And that’s not even counting the hit to your brand. So while you are trying to figure out how to get ROI on all of your processes, don’t forget how these small things all add up. If you don’t manage the controllables (or at least have a line of sight into them), you are going to end up losing money on the things your company is good at! #HR #PeopleManagement #Payroll #EmployeePerformance #LiveEvents #CostManagement #HRStrategy #BusinessEfficiency
Looking for ways to staff smarter? 🌟 Below are 5 ways you can streamline your staffing processes, minimize costs, and position your business for long-term growth and profitability in this competitive industry. 💡 Learn more: https://hubs.ly/Q02xdYKF0
Stage Stewardess
2moThank you for breaking it down like this!