Hidden Costs of Running a Business
Running a business is an expensive affair. There are many expenses to take into account from office rent to payroll. But not all business costs are overheads. There are many hidden costs that small businesses regularly incur that can be easily avoided.
$33 Billion Impact
Absenteeism costs the Australian economy $33 billion in wages and lost productivity. And the average impact to SMEs, just in New South Wales alone, is over $25,000 in lost productivity (Exponential Project).
That is over $2000 a month for small businesses. And while sick leave is a legitimate entitlement, with many people genuinely needing that time to recover, there are also frequent cases when it gets misused which adds needlessly to the cost of running a business.
121% Increase in Claims
While managing risks in workplaces and fostering a safe work environment should be the number one priority for all business owners, it does get overlooked. In fact, from 2000 to 2016 the median compensation paid to employees for successful serious claims increased by 121% (Safe Work Australia).
By ensuring the right workplace health and safety framework is in place, small businesses will not only be securing the safety of their employees, but they will also be saving on unexpected costs such as workers compensation claims.
$7.3 Million in Penalties
The 2017-18 Fair Work Ombudsman (FWO) audit issued $7,300,000 in court-ordered penalties for non-compliant businesses (Deloitte – Future of Work).
And while employment law can present itself as a labyrinth for small business owners with complex terminology and clause variations, the financial and reputational impact of non-compliance is very costly for small businesses.
Don’t Add to the Statistic
Employsure works with small businesses to ensure workplaces run seamlessly. With Health and Safety experts ensuring that workplaces have the right measures and safeguards in place; and Employment Relations Experts ensuring that businesses are protected with the right policies and procedures to manage issues like sick leave and termination without complication.
Not having the right set-up can cost your business financially, impact staff morale, and more. These are the true hidden costs of running a business which can easily be prevented by planning ahead.
Free Workbook: Hidden Costs in Your Business & How to Avoid Them
We’ve put together a free workbook, written by experts in the field who understand what it takes to run a small business. This interactive workbook shares key policies for workplaces, self-assessment checklists, and preventive measures you can implement to save on avoidable expenses.
Download the free workbook today so you can save on cost and also ensure that you’re running a safer and better business.