Enhancing Profit Margins Through Efficient Staffing Strategies
The right profit margin depends on a number of factors, including profit goals, the type of business, and the industry. In many sectors, the best margin is between 5% and 20%, where most businesses find a 10% rate desirable. If the profit is down to 7% or 5%, it may mean your expenses are exceeding the revenue. A margin of 20% or above can show a business is generating more revenue than it can cover in costs. Assuming you've set your desired margin, here are a few excellent employee strategies to achieve or enhance it. Attract the Best Employees Using Referrals Almost a third of all businesses consider referrals to be the best source of high-quality talent, and almost two-thirds rank them as a top priority. If your company has developed a good reputation, ensure your bes...
