BONUS: Nine specific illustrations.
By Ed Mendlowitz
77 Ways to Wow!
Most business owners look at the total payroll in dollars and go no further. But – payroll numbers are useful only if you drill down several levels to determine …
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Head count
I tell clients to keep track every month of the total head count of the business – whether it’s three, 10 or 100 employees. On a year-to-year basis, the head count can be very revealing. First, it tells you whether employment is growing faster than you realized. Second, by comparing head count with unit sales, you can measure worker productivity. If there is growth in units sold, your payroll is in good shape. If growth of units per employee declines, you have a problem that needs immediate attention.
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