Home > Uncategorized > Salaries are Highest Expense Component

Salaries are Highest Expense Component

Unless you’re currently in the middle of a major capital expansion or renovation project, odds are that your greatest expense in any given month is wages and benefits. Most of us don’t like to think about cutting back on employee hours because often that means we would have to work longer and as it stands, most of us feel we’re working harder than ever before. But it long-term sustainability is the issue, we might have to reduce hours for some employees.

This was brought home to me in a story that appeared Monday in the print edition of The Toronto Star. San Grewal is writing about the impact on shopkeepers in Oakville, Ontario, an area once considered one of the richest municipalities in the province.  The owner of a shoe store is quoted as saying “A lot of people with money; they’re not shopping here any more.”

And then,

“It’s all the owners working inside the shops now. They never used to, but who can afford all the staff anymore?”

Julia Hanna, executive member of the city’s Chamber of Commerce is also a downtown restaurant owner. She told The Star,

“I’ve been a business owner in downtown Oakville for 30 years. I’ve never seen it this bad. Never.”

“People in Oakville are affluent because they worked hard, were successful and were careful with their money. There’s no question the economy has affected everyone.

“But I’ve been through two other recessions. To have this number of businesses closing, there’s more happening.”

 

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