8 Smart Ways To Keep Your Startup Staffing Costs Down
Many people have enterprising minds, so it’s no wonder that most are eager to start their own businesses. Some ideas require a lot of startup capital, especially when covering staffing costs.
You’re probably reading this today because you need to hire people to work with you and help you realise your business goals and dreams. Of course, people need to get paid for their work, so this could be challenging if you’ve got minimal startup capital.
Thankfully, there are some ways where you can still pay your staff a fair wage but keep your employee costs down as much as possible. Here are eight ideas for you to consider – some of which you likely never knew existed:
1. Government Subsidies And Incentives
People starting new enterprises is good for the government because it means they will likely receive more tax revenue from businesses. To encourage entrepreneurialism, most governments offer startup support through subsidies and incentives.
For example, in one part of Australia, there is mature age training funding for employers that want to take on apprentices or trainees over the age of 21.
Wherever you are in the world, it’s worth checking if the government can pay towards the cost of taking on new employees in your business.
2. Hire Part-Time Employees
There will undoubtedly be quiet times each day you operate your business. As you can imagine, paying for employees to work in those times can sometimes be a waste of money if there isn’t much for them to do.
That’s why it could make better sense to hire part-time employees. You could ensure their shifts only cover the busy periods of your operating times, and you could manage the rest of the time yourself.
3. Take On Temporary Staff
It’s no secret that starting a new business can be a high-risk decision – especially if you have yet to gain experience in running an enterprise. One way to mitigate your risk is by hiring temporary workers in your startup business.
Doing so means you only agree to hire them for a fixed term, so if things don’t work out, you don’t have to renew their employment contracts or worry about compensating them with a redundancy package should you decide to wind down your startup.
4. Offer Volunteering Opportunities
Are you planning to start a non-profit organisation in your area? If so, taking on volunteers is an excellent way to keep your operating costs to a minimum.
Volunteering is an excellent prospect for individuals with spare time they’d like to dedicate to a worthy cause, and you can advertise for volunteers to assist with many different roles.
As your non-profit organisation grows and its income increases, you could even offer to pay some volunteers a salary.
Are you going to start a forward-thinking business aiming to invest in its employees? If so, hiring tomorrow’s future professionals makes perfect sense for your startup.
Apprenticeships help young people forge new careers, gain valuable industry skills and experience, plus they’re valuable assets to growing firms like yours.
What’s also great about taking on apprentices is the government may even pay towards their wages – a result for you to help keep your staffing costs low.
Some university graduates may find it challenging to get a job – especially if they’ve no industry experience other than an unpaid course placement with an established company.
Internships are excellent opportunities for university graduates to use their education in a commercial setting, gain valuable industry experience, and get paid for their work.
Interns don’t get paid the same rates as qualified and experienced workers, but they do receive the above benefits plus opportunities to further their careers by continuing with their studies on a part-time basis in some cases.
7. Use Freelancers And Contractors
When you hire an employee, you must adhere to various government-mandated rules and regulations and organise and pay each employee’s taxes and benefits.
Hiring freelancers and contractors means those individuals take care of those things themselves. All your business has to do is pay an invoice for their time each month.
What’s more, freelancers and contractors are generally cheaper labour than employees because you don’t have to cover those employment overheads.
One final idea to consider is using outsourced service providers. They are businesses like yours that offer the staff, equipment, and other resources needed to tackle specific tasks.
For example, you could partner with a fulfilment centre outsourcing company to handle your warehouse, logistics, and distribution needs, resulting in lower staffing costs and other overheads.