Steps to Control Labor Costs

Control Labor Cost

In these steps, you will learn how to cut  labor costs for controlling labor cost. There is mixture of many techniques where we control misuse of our resources in labor in the form of idle time or any other things. After this, we can reach a stage where our overall labor cost may reduce.



 Steps to Control Labor Costs

1  In first step, we have to make good working system in which day and night labor time is recorded and total overtime and idle time is counted and try to include all workers in this system. Main aim of first step is to reduce idle cost.


2  In second step, we provide labor incentives under good incentive technique. It will be inspiration for  employee to do work more fastly. It will reduce the cost of labor indirect way.


3   In third step, we review above two steps and change above system of working and incentive system, if the new system is more efficient and effective for reducing cost of labor. 


4   In fourth step, we provide training of employees from experts for reducing the loss due to ignorance of production process or working with wrong manner or unsafe work.


5   In fifth step, we have to praise for employees' achievements. In this, we have to pay nothing, but only speak good words for recognizing the good performance of employees. After this, employees' efficiency will increase and they will do better for reducing labor cost.