The Department of Labor’s new overtime rules have many businesses concerned as to the cost of accommodating these new standards. But some of these costs might already be seen in how a company is already doing business, and they might not even know it.
The hidden costs of running a business are those things that no one really thinks about or plans for on a regular basis, not until we see the end of quarter reports and the profits disappearing. By then those hidden costs may become the standard way of doing business, and may not even be seen until an annual budget review.
But the solution to resolve these costs may be easier than you think. It may be that employees could be financially stressed. After all, we’ve shared many times that financially stressed employees spend approximately 20 hours per month at their job worrying and dealing with personal financial issues. This means an hour a day, five hours a week – they are not focused on their work. Not only does this impact a company’s profitability, but could also cost relationships that your company has with Vendors, Shareholders, customers… and even other employees. And according to the American Psychological Association, 64% of Americans report that money is their number one stress. Just think, if you have 100 employees – 64 of them are dealing with financial stress.
Financial stress also impacts businesses through other means…