What are some effective ways to reduce labor costs?

The following points are the methods that Huaheng Zhixin has summarized after years of enterprise consulting service practice to reduce the labor cost of enterprises:

1) The implementation of target management and strict control of the total amount is the fundamental way to reduce labor costs.

It is necessary to strengthen the control of total wages, establish a wage control system, incorporate labor cost control indicators into the assessment content of the target responsibility system of operators, and investigate the responsibility of enterprise leaders whose labor costs are out of control; It is necessary to renew our concept of employing people, establish a new employment mechanism, and scientifically control the total amount of employment.

2) Adjusting the organizational structure and improving work efficiency is the basic work to reduce labor costs.

It is necessary to clearly define the functions of each department, stipulate the posts that must be established to achieve these functions, and stipulate the work responsibilities that each post should bear; Departments and positions must be connected with each other to form a reasonable process for the entire organization. The management between departments is closely linked, the work procedures are coordinated, and the management system can be effectively implemented. It is necessary to ensure that the functions of each department are clear, the rights and responsibilities are in place, the division of labor is clear, the assessment is well-founded, and scientific evaluation and assessment can be carried out.

At the same time, the setting of departments and positions should provide sufficient space for employees to display their talents, and provide enough space for cultivating talents, so that the enterprise can become a platform for personal development.

3) Improving the quality of personnel and mobilizing the active role are the core measures to reduce labor costs.

The improvement of the quality of personnel refers to the improvement of overall quality, mainly in two aspects: the improvement of ideological quality and the improvement of professional quality. With these two improvements, it is possible to greatly improve the efficiency of enterprises. When the denominator of benefits is larger, the proportion of numerators with the same labor cost is correspondingly smaller.

4) Establish an incentive mechanism and mobilize positive factors, which is the driving factor to reduce labor costs.

In accordance with the principle of "the market decides, the cost is determined, and the cost restricts employment", the cost is decomposed layer by layer, forming a labor cost control responsibility system of "everyone is responsible, everything is managed", and the incentive and restraint mechanism of the responsible body to consciously reduce costs is established, and the rewards and punishments are clearly distinguished, and the assessment is strictly assessed and hard to cash, so that the low-cost development strategy has a reliable mechanism guarantee.

5) Strengthen cost management and standardize expenditure items, which is the institutional guarantee to reduce labor costs.

To strengthen the management of labor costs, we must do three things: strictly control the expenditure subjects; Strict control of expenditure standards; Strict control of reasonable ratios between items.

The purpose of enterprise information construction is to save costs for enterprises, easy to manage, and use modern technology to replace part of the business processes and personnel in the continuous development of enterprises.

Therefore, the specific information construction is based on the actual development process of the enterprise, which is gradually reflected, providing the cost, not easy to manage part of the business process and staffing that hinders the development of the enterprise.

The benefits, needless to say, are cost-saving and easy to manage.

Of course, if the enterprise informatization construction is ahead of the curve or backward, it will play a great role in hindering the development of many enterprises.

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Mitigation measures:1. Improve operation and management, adopt new technologies, and improve equipment utilization.

2. Reduce fixed assets.

The consumption of raw materials, fuel, auxiliary materials, and labor productivity are improved.

3. Implement quota management to reduce manufacturing costs.

4. Strengthen budget control and reduce period costs.

5. Implement comprehensive cost management and reduce the cost level in an all-round way.

6. Supervise the formation of costs. This is to regularly inspect, evaluate and supervise each project of cost formation according to the control standards. It is necessary not only to inspect the implementation of the indicators themselves, but also to inspect and supervise the conditions that affect the indicators.

Cost as a commodity economy.

The value category is a component of the value of the commodity. If people want to carry out production and business activities or achieve certain goals, they must consume certain resources, and the monetary performance of the resources they spend and their objectification are called costs. And with the continuous development of the commodity economy, the connotation and extension of the concept of cost are constantly changing and developing.

Cost Component Contents:

1. The cost of raw materials, materials, fuel, etc., expresses the value of the labor objects that have been consumed in the production of goods.

2. Depreciation expense, which shows the value of the labor materials (means) that have been consumed in the production of goods.

3. Wages show the value created by the necessary labor of producers.

1.Reduce personnel, increase production, and increase wages

For how to do a good job in cost control, Mr. Ren Zhengfei has a discussion, the difficulty in management is cost control, there is no scientific and reasonable cost control method, the enterprise is at a critical juncture, all employees must mobilize to optimize management, to reduce people, increase production, increase wages.

Mr. Ren's words have two meanings: emphasizing the importance of cost control, only when the cost is well controlled, in the case of the same product quality, can it be more competitive in the market; Second, it pointed out the idea of controlling costs: reducing personnel, increasing production, and increasing wages.

2.Redundancy is a big cost for the company

Redundancy is a big cost for the companyRedundancy increases not only labor costs, but also office costs that are matched with labor, such as computers, workstations, office furniture, etc.

In addition, redundancy can also create a lazy working atmosphere in the company, which can lead to low morale, lack of initiative, and reduce work efficiency. It would be even worse if posts were set up on a person-by-person basis in order to solve the problem of redundant work, which was tantamount to artificially setting up obstacles in the work.

3.Two attitudes towards layoffs

The economy is in a downturn, the company is in difficulty, and the boss has two attitudes about layoffs or not:

1) Reduce staff and increase efficiency, emphasize that the company is not home, and resolutely eliminate "mediocre" employees;

2) Do not agree to layoffs, although the company's operation is difficult, but it has not yet reached the point of loss, the prospects of the whole industry are not good, this time should be strong, do not easily throw out the employees as a burden. Which attitude is good, it should be said that each has its own reason, and the key depends on how to grasp the heat and proportion.

4.Layoffs

Layoffs, commonly known as taking jobs, have always been taboo. Most of the layoffs initiated by enterprises are secretive, and they will find various terms to cover up, such as giving up mediocre employees, eliminating the last position, and adjusting the personnel structure. Many companies are willing to operate softly in the method of layoffs, and do not take the initiative to let employees leave, but use tricks to force employees to leave voluntarily.

5.Enterprises run society

In the past, we criticized enterprises for running society, believing that it would weaken the competitiveness of enterprises in the market. After that, the enterprise ran the society and was better corrected, and the company no longer paid for the housing of employees, the schooling of children, the medical care of employees, and the retirement of employees. After decades of running as a single economic entity, entrepreneurs are now rethinking the benefits of "enterprises running society".

6.Keep your hunger pang when hiring employees

Enterprises should maintain a certain hunger when recruiting employees, and avoid having spare time after recruiting at full capacity. Some companies expand their employees too quickly and start layoffs as soon as they catch up with market fluctuations.

It is important to know that when companies lay off employees, they also waste the time and energy invested in training these employees, as well as their networks and work experience. What's more, it will discourage other employees and shake their loyalty to the company.

(1) The fundamental way to reduce labor costs - the implementation of target management, strict control of the total amount.

2) The basic work of reducing labor costs - adjusting the organizational structure and improving work efficiency.

3) The core measures to reduce labor costs - improve the quality of personnel and mobilize the active role.

4) Motivation factors to reduce labor costs - establish an incentive mechanism and mobilize positive factors. In accordance with the principle of "the market decides, the cost is determined, and the cost restricts employment", the cost should be decomposed layer by layer, and the labor cost control responsibility system of "everyone is responsible, and everything is managed", and the incentive and restraint mechanism for the responsible subjects to consciously reduce costs should be established.

5) Institutional guarantee to reduce labor costs - strengthen cost management and standardize expenditure items. To strengthen the management of labor costs, it is necessary to achieve three strictness, including "strict control of expenditure subjects, strict control of expenditure standards, and strict control of reasonable ratios between projects".