Excellent approach. I am also working in the service industry. We develop in-house software for financial institutions. Nowadays, it is very challenging to retain key employees. In our company, the strategy we have adopted includes increasing salaries when needed and providing training to develop their skills. Sometimes, the increase in salary might not be compensated by an increase in revenue, which is a challenge we are all facing. However, losing key employees is also costly for the company, so in parallel, we are training interns so we have people ready to take their place if needed.
We encourage cross-training to diversify employee skills and reduce dependency on specific individuals. We also give employees the autonomy to make decisions and manage their own work, and we involve them in company strategy. We document all data so that any new employees can take the lead. I don't say that this is the best solution, but employee retention has decreased, and financially, the company is not at its best, having a small net income and sometimes a loss. However, investing in employees is the key to future success.
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Karine Kamareddine CMA
CFO
Bluering SAL
Beirut
Lebanon
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Original Message:
Sent: 08-05-2024 02:46 PM
From: Sindhuja Selvakumar
Subject: Payroll Forecasting
Payroll is a major cost for a service business. Accurately predicting payroll can be particularly challenging for organizations with high labor turnover.
What strategies or approaches have you found effective in managing payroll forecasting in environments with frequent employee changes?
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Sindhuja Selvakumar CMA
Analyst
Coimbatore TN
India
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