It’s often more efficient to hire an experienced, skilled worker, even though they cost more because their greater output and quality levels more than compensate for the extra expense. This is a good example of how operational efficiency transcends cost-cutting. Trimming costs would have you hire the least expensive employees possible, but you would be reducing operational efficiency because inexperienced workers deliver lower output per dollar spent.
Labor is a resource like any other, and it needs to be used efficiently. That means concentrating on building realistic schedules that maximize billable hours and prevent people from waiting for work. It also means placing people into positions that best utilize their skills and providing training where needed to get people up to speed quickly.
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