Generating and increasing profit both for an employer and an employee
Each company has the same goal and it is striving to achieve and maximize economic profit – in a nutshell – to have a surplus of revenues over costs.
As clear as day, yet I have the impression that some entrepreneurs forget about it.
When this goal is achieved – in the perfect scenario – both company and its people have a sense of security and a high level of happiness and life satisfaction.
However, everything also depends on how these profits are generated and what it takes to generate them. Henry Ford once said, “Coming together is the beginning. Keeping together is progress. Working together is success.”.
And success is possible to be achieved when both employers and employees are accountable for it.
1. Increasing profits by optimizing work time
Today we have a huge amount of tools to manage a company and to generate an income, and TIME seems to have lost its value. What I am trying to say is that time is important in a sense of making it in time and making it on time. But that’s not the point. The point is to turn productivity into efficiency. After all, every entrepreneur wants his company to prosper as best as it’s possible without wasting resources at his disposal – capital, people and … time.
Converting productivity into efficiency becomes possible when we introduce appropriate IT tools that help to optimize working time in the company. But such a change must go hand in hand with the approval of the entire team in the company, and not just be a decision of the CEO.
2. Effective company management
Information is all we need to increase profits!
And with the information I mean awareness of how much time particular employees spend on production or providing services to particular clients in particular processes.
I encourage you to use the application that will provide you with all these data. It is a tool that makes paid working time even more valuable for both an employer and an employee.I believe that time is a non-renewable good and the most precious value.
That is why it is so important to track and settle working time both in terms of costs and revenues, so that time does not slip through our fingers. After all, time is money!
How to increase profits while avoiding costs cutting?
I have several ways to do it! And I am sure that everyone will choose those that suit their own business the best.
- Recording the real working time spent on a customer.
- Verifying the real time spent on customer care and renegotiatng contract terms.
- Appropriate settlement model.
- Invoicing as much real working time as possible.
- Effective management of the resources in the company.
- Eliminating waste, optimizing processes.
When you track time, you can effectively manage it and increase your revenues by up to 20%.
Let time work for you, not the opposite!
3. Effective management of employees’ work time
I believe that it is impossible to increase a company’s efficiency without backing up the efficiency of colleagues. It is people who make a company and without proper motivation and working with a team, we will not achieve satisfying results.
Reluctance and fear of being controlled
No matter if it’s an employee who works all the time behind the desk in the office or someone who does the fieldwork, he most often sees tracking working time as another duty or an even greater and more detailed way of controlling his work. This fear is relatively difficult to dispel. That is the same case as implementing any new IT system, no matter its scale – resistance to implementation, resistance to something “new”, resistance to extra duties, and finally resistance to being controlled by the employer. Motivating employees to feel the need to track time and explaining the method and benefits of tracking working time should be one of the employer’s key activities.
It is the responsibility of the employer to pay attention to the relationship between salary and the effects and well-balanced use of resources. The number of hours worked broken down to separate projects or types of work, will guide the employees to new ways of thinking and encourage them to rationally track their own working time.
Win-win situation: when your company earns – you earn too (employee responsibility)
For an employee profitable work means satisfaction with the achieved results and gratification for the incurred expenses. On the other hand, the ineffectiveness of the activities performed may result in a decrease in motivation, worsening efficiency and, consequently, dismissal from work. In the long-term hindsight, the efficient performance of tasks means higher profits for a company and higher salaries for an employee. The analysis of the tracked working time also shows which tasks feel more comfortable for an employee and when he makes a better use of his skills.
Building a better relationship between an employer and employees
If our goal is to increase efficiency in the company, and thus increase profits, a motivated team is a must. Let’s not forget: a company is created by its people, and a leader’s job is to cooperate with others and lead the company and his team in the right direction. Therefore, in order to increase efficiency, we must analyze work processes within our team.
Employer! Do your co-workers find their work meaningful? Or is it rather to “work it out even when it wears you out”? Take a moment to think about it! And how about you? Ask yourself too whether what you do really makes sense? I prefer to check what my efficiency is instead of putting my bet to do everything I have to do today, i.e. what my productivity is.
Each of us thinks and acts in a different way.
Have you ever wondered why some people don’t ask questions about assigned tasks and get them done quickly, while others first analyze, ask and then get on with them or just need more time than others? It has to do with the potential of individual people in the team.
Getting to know or verifying the potential of the team will contribute to a better understanding of ourselves and the appropriate use of the potential of individual team members, which will translate into increased efficiency. On top of it, this is the way to care for long-term relationships and appropriate communication in business.
From my own backyard
I focus on honesty and competencies. I don’t control who is doing what at the moment. In our WorkTime Expert application we set goals and time to achieve them. We organize meetings during which we discuss projects and the progress of particular tasks. According to this knowledge, we assign tasks to ourselves and other colleagues, we budget time – nothing extraordinary, but what counts at the end of the days is the result, i.e. completing tasks on time.
I care about people’s creativity, not about ticking off 8 hours of a work day. First of all, let’s face it – how much work is there really in work? If you think that your employee comes to work for 8 hours and during these 8 hours, excluding 30 minutes break, he works effectively, you are wrong.
At the beginning of each cooperation I always make a clear point that if someone needs to deal with some matters during working hours, there is no need to explain it to me. I just need the information that my employee will be out of office – the message is clear: Organize your time so that the work is done on time.
The same goes for a concentration drop. When it happens I encourage my employee to go out for example for a walk. I know that later on it simply translates into increased efficiency in the company. We have flexible working hours. The software engineers start their day around 11:00 and work until late hours, the rest of the team starts earlier, but there is a certain amount of time when we are all together.
Recap: Manage your work time effectively!
Using data on work time spent on particular projects, customers, data on the types of work and how particular employees perform these works, WorkTime Expert allows you to draw valuable conclusions from analytics and reports. These conclusions are used to optimize the work of both particular team members and the entire organization, which results in a significant efficiency increase.
Manage your work time effectively!
Increase revenues and reduce cost and pursue your goal – increased profits.
Optimize work processes in the company thanks to the summary and analytical results of real-time registration. Eliminate unprofitable activities and build customer trust thanks to legible reports.
Author:
Agnieszka Borowska-Zasada – WorkTime Expert app Co-founder
