Contributing To The Bottom Line

Contributing To The Bottom Line

- John Pereira

Bottom Line refers to a company’s net earnings, net income or earnings per share (EPS). Bottom line also refers to any actions that may increase/decrease net earnings or a company’s overall profit. A company that is growing its net earnings or reducing its costs is said to be “improving its bottom line”.

Most companies aim to improve their bottom lines through two simultaneous methods: growing revenues (i.e., generate top-line growth) and increasing efficiency (or cutting costs).

Employees working towards contributing to the company and how make the difference.

Everybody knows that happy customers lead to higher profits. But the same is true for happy employees and the reasons why this is so may surprise you. The reasons have to do with turnover, performance, theft and disruptions. Here are the facts.

About one half of their employees in the U S. companies regularly turn over every four to five years. This is very costly since replacing an employee can cost between 25% and 200% of their annual salary. If you reduce your turnover, you save the money that it costs to make new hires. Even a 5% increase in retention will improve a bottom line profit margin by 25% or more. Obviously, it is better to keep employees than let them leave. Of course this only applies if you hire the best and retain the best. A survey of more than 10,000 employees in more than 32 countries found that no matter where you do business, employees fall into one of four categories.

These are the very best employees. They work hard, are the most productive and give good customer service. They are also the ones that are most likely to stay with the firm.