Mike Andes discusses how to manage payroll during slow seasons so your business survives and employees stick around. The conversation covers strategies for keeping staff when revenue dips and maintaining financial stability through lean periods.
You're going to tell me that I'm super stupid. I pay them for 10 weeks when we have nothing on the books because it keeps employees around. We still have a seasonal part of winter that I still got to pay bills when there's no money coming in. Now you've taken 10 weeks, which is $30,000 in payroll, and I have no revenue coming in.
So let's take that 30 grand, not do that, and give it to the people who show up for the nine months of the year. Guess what? We'll be able to pay them more. $7 more per hour. If you can pay so much more than all the competition, they will come back. This is what you say, hey, we're going in the winter season. I will divvy up hours as much as I possibly can. I can guarantee you're coming back at same pay everything. Some guys just want to work 20 to 30 hours. I switched from that and went from $70,000 in the hole during the winter months to being able to at least break even during the winter months.
