How can you boost your employee’s efficiency whilst controlling costs?

"We're spending a fortune on salaries, but I'm not sure we're getting the best out of our team."

If you're nodding your head like this is you, you're not alone. This is a common frustration we hear from business owners across the UAE.

There's a way to boost your team's efficiency without breaking the bank. It's all about understanding the true cost of your employees and making smart decisions to maximise their productivity.

By the end of this I am confident you'll have a clearer picture of where your money's going and how to get the most out of your team and be a great place to work.

Do you know the real cost of your employees? It's not just about the salary you're paying them.

SO how exactly is that cost broken down?

True Cost of Employee = Base Salary + Benefits + Gratuity + Training + Equipment + Workspace Costs

Here's what each of these means:

Base Salary is what you pay your employee annually.

Benefits: Health insurance, leave pay, and any other perks.

Gratuity is the end-of-service benefit unique to the UAE.

Training costs are the annual costs for developing your employee's skills and not including lost productivity time for those taking the training.

Computers, phones, software licenses, etc.

Office and workspace costs A portion of rent, utilities, and maintenance per employee.

Say you have an employee with a base salary of 120,000 AED per year:

Base Salary: 120,000 AED

Benefits (15% of salary): 18,000 AED

Gratuity (5.8% of base salary for first 5 years): 6,960 AED

Training: 5,000 AED

Equipment: 7,000 AED

Workspace Costs: 15,000 AED

Total estimated true Cost: 171,960 AED per year

That's about 43% more than the base salary.

Now you have the true cost, how do we make sure we're getting value from each employee?

It all starts with the basic of clear communication ensuring your team knows exactly what's expected of them is typically the most common problem and easiest fix.

Develop your team and invest in training to build a more efficient, skilled workforce, which leads me onto the next point where both could go hand in hand with global training from experts with different viewpoints, embrace technology and find tools can help your teamwork smarter, not harder. But don't forget the human touch - create a positive work environment where employees feel valued and motivated.

If you are more daring and want to stand out a bit more you can really try shake things up and consider transforming your office with nap pods for midday recharging in Dubai's warm climate. Experiment with walking meetings in air-conditioned corridors, combining brainstorming with light exercise. Implement “Wellness Walk Wednesdays" for a day of active listening and concise communication. To build empathy and cross-training, try rotating job roles for a day.

These unconventional approaches can break monotony and spark creativity. Create a "Failure of the Month" award to celebrate learning from mistakes and encourage innovation.

It’s important that all these initiatives are also focused on your costs so conduct regular reviews of employee-related expenses, looking for areas of overspending or better rates on benefits.

In Dubai's business-friendly environment, there's always room for negotiation. Consider flexible work arrangements - remote work or flexible hours can cut overhead costs, reduce commute times in busy traffic, and lead to happier, more productive employees.

The key is to experiment and find what works for your business, your team and you, try blend the conventional with the unconventional, and you might just stumble upon your next big productivity breakthrough.

Often companies feel like they have to give employees every benefit possible, but research shows employees when it comes to benefits think quality over quantity. A targeted benefits package that gives employees what they really want can be more cost-effective and more appreciated.

Your focus as a leader of your teams is boosting efficiency and controlling costs isn't about squeezing more work out of people for less money. It's about creating an environment where your team can do their best work, while keeping your business financially healthy.

Every business is unique, and what works for one might not work for another. If you're feeling stuck, give us a shout. We're here to help you navigate the ins and outs of managing a team in the UAE.

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