The pages of many media are full of various reports on profitability, in simple terms, on the ratio of costs and profits. There are various types of profitability: return on assets, return on sales, profitability of personnel and others.
In order to determine the profitability of any kind, only data on profit and expenses will be required. In fact, we are talking about a coefficient showing how much profit is received per unit spent. Since the entire business is built specifically for profit, in competent companies, they are very serious in calculating this ratio.
For any enterprise, the profitability of staff is very important, which shows the effectiveness of the team and allows you to control the cost of workers in accordance with the amount of profit. To avoid a large number of costs for the work team, they use the optimization of the number of staff.
There are two ways to regulate profit making:
1) increase profits,
2) reduce costs.
Obviously, the profitability of personnel in a highly competitive market for the sale of high-quality and popular products belongs to the second category of business optimization. To reduce personnel costs, it is necessary, first of all, to identify the main flows that lead to a cash outflow. Regarding staff, these are deductions to the payroll fund, UST, expenses for TB, work clothes, social packages and others. A variety of costs will fluctuate depending on the specifics of the enterprise.
If the analysis of personnel profitability clearly shows low work efficiency, it is necessary to optimize its number. During this process, all costs without exception are reduced.
Competent optimization should take into account that a change in the number of personnel should not affect the quality and efficiency of products, but at the same time, costs should not exceed the established amount. In addition, the profitability of personnel shows a low value if the company uses old equipment, produces unclaimed products on the market, or low-quality products, as well as if the company does not switch to new, more economical technologies. Often it is the lack of costs for updating technologies and equipment that reduces the profitability of personnel, since in this case a much larger team is required to advance, repair and maintain old equipment. At the same time, the reduction in the number of personnel should not affect the speed, efficiency and quality of work.
Analysis of the profitability of personnel already at the diagnostic level can identify jobs that an enterprise can do without. The second stage of optimization will be to determine the minimum number of employees and plan for reductions. Reduction planning is not an easy stage of optimization. Here the definitions of the “personnel core” (highly qualified specialists, without which the effectiveness of the work will decrease) and the personnel periphery (part of the staff, most of the employees performing less significant functions) become very important. In this case, the profitability of personnel shows either underestimated or the same values that could have been without personnel periphery. Despite the fact that the workers of the latter perform their functions, in a crisis, they can be dispensed with.
The last step is to carry out reductions. Many enterprises carry out mass reductions in a “tough” way, after which a large number of lawsuits against the management appear in court. To avoid such consequences, they use a soft reduction scheme, which stimulates the process of dismissal of their own free will through the payment of decent severance pay.
Thus, the problem of staff profitability is very important for a good enterprise. A program to calculate this coefficient will not only significantly reduce costs, but also spend the saved money on improving working conditions, buying new equipment and other accessories that will contribute to more efficient work.