|Control Labor Cost|
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.