We tend to find ourselves in situations where we must hire others for services we often require, we are billed either as a flat fee or for the work and materials involved. When companies take the first step towards hiring another company they most often prefer flat fee services since they have never done business previously. A flat fee service has advantages such as keeping the cost low; completing tasks all at once, and allows the client to have more confidence that there are no hidden costs. Although flat fees are most often sought for the lower work cost they often harbor lower quality work and hidden fees. The problem is that a vendor may underestimate the entirety of a service and then overcharge the client for additional work. With open billing a client would be able to be more specific with project details/requirements, avoid hidden additional costs and be more involved in the process altogether. Usually open billing is done when both the client and vendor have worked together previously. If the client is familiar enough with the vendor they can be confident in their productivity and save money by paying per hour rather than agreeing to an unnecessary flat fee to accomplish their needs. For a first time customer it’s better to familiarize yourself with a company by going with a flat fee and moving towards open billing if more specific requirements are involved.
Posts Tagged ‘workload’
For years the opposing characteristics in managers have left a dividing line between those who run a tight ship and those who make their employees feel miserable in the line of work. During the past couple of years with technology becoming more advanced it has become easier to get in contact with co-workers and colleagues in a business environment. It is now difficult to distinguish proper management of a workforce when the communication between the two forces has increased greatly. The question that remains is should an individual with a seat of power over his workers run a tight ship or cut them some slack every once in a while? Recent surveys have shown that it is now more acceptable to instead text in sick rather than actually calling in. Although this may not seem like a big deal, it breaks the barrier in a personal sense where both parties are communicating on a personal phone which leaves the air open for more personal matters to be brought up. A manager must make tough decisions between workers that are well mannered and willing to learn or those that are already accustomed to the field of work but are difficult to collaborate with. Many circumstances come into consideration when interacting in the office such as personality types which can bring a team together or farther apart. An example would be a person who has a personality which includes a higher level of detail and loyalty which will trump an individual who is overly anxious as well as unable to pay attention to details. The manager must first make decisions when surrounding himself with workers by deciding if their personalities and habits are a compatible recipe for producing successful results. Lower ranking positions such as working at fast food restaurants always have a flowing stream of back talking teenagers walking in as opposed to the corporate business who keeps their carefully screened candidates for many loyal years. Today it is crucial that when running a business you screen your potential candidates with personality tests in order to determine if they are best suited for your needs or positions.
The cost of turnover can be quite high. The more skilled the leaving employee, the more cost involved in replacing him or her. It can be much less expensive to work to keep your employee happy.
In loosing a skilled employee, someone will need to pick up the slack until the employee is replaced. This means one, (to a multiple of people) that make the same amount or more money is going to have to work overtime to cover the workload. That means time and a half to your company books.
Once you hire an employee, you will need to train them. Although they may have done this job elsewhere, they have not done it for you and have not learned to do it your way. So now you are not only paying the time and a half employees, you are also paying someone to learn your system. During this learning period, the new employee is more likely to make mistakes that have the possibility of costing you money.
It’s much more cost effective to make sure your employee is happy, comfortable in the position, feels like they’re going somewhere in the job, etc. A good way to do this is have reviews where both parties can discuss the job and how each feels about it.