Cost-Effective Non-Revenue Solutions are Benefiting Businesses Facing Tighter Margins.
In today’s business landscape, companies must have a balance between revenue and non-revenue producing positions. Revenue-producing positions, such as sales and marketing, generate revenue for the company. Non-revenue producing positions, such as IT, HR, and administration, do not directly generate revenue but are necessary for the smooth running of the business.

When freight margins are tighter, managing costs for non-revenue producing positions becomes even more critical. Here are some reasons why:
- Non-revenue producing positions can account for a significant portion of a company’s expenses. For example, the salaries and benefits of IT and HR staff can be significant costs for a company.
- When revenue is down, cutting costs is essential. It may be tempting to cut non-revenue producing positions, but doing so could harm the company in the long term. For example, if IT support is cut, the company may face downtime and lost productivity.
- Non-revenue producing positions can still add value to the company. IT, for example, can improve efficiency and streamline processes, resulting in cost savings for the company.
As a result, it is as important as ever to manage costs without sacrificing the quality of their products and services. Some companies are achieving this by hiring affordable back-office or non-revenue producing staff. Listed below are the benefits of hiring affordable back-office solutions:
- To start off, hiring affordable back-office or non-revenue producing staff can help companies reduce their labor costs. These types of staff are typically less expensive to hire than revenue-generating staff such as salespeople.
- Secondly, back-office staff can help companies streamline their internal processes and increase their efficiency. By hiring staff to handle administrative tasks such as data entry, bookkeeping, and payroll processing, companies can free up time for revenue-generating staff to focus on more critical tasks.
- Lastly, hiring non-revenue producing staff can help companies increase their customer service. For example, hiring additional staff to handle customer inquiries and complaints can ensure that customers are satisfied with their experience and are more likely to return in the future. This can help companies retain customers and maintain a positive reputation for the industry.
To conclude, companies must have a balance between revenue and non-revenue producing positions. When freight margins are tighter, managing costs for non-revenue producing positions is essential. Hiring affordable back-office or non-revenue producing staff can be a great decision for companies looking to cut costs during tough economic times.
Are you looking to save costs because of your company’s tighter margins? Contact us today at info@nstalentsolutions.com to learn more!