Every business owner wants to be profitable. They want to have more business revenue than business expenses. As such, they look for ways to cut expenses. 

One go-to solution many businesses employ to reduce expenses is laying off employees. Unfortunately, layoffs lead to understaffed facilities. That may not be the best approach for your business.

Customer Service Suffers

Understaffing your business may stretch your employees too thin. Understaffing requires employees to pick up additional responsibilities, including more time providing customer service.

Face-to-face interactions are great for your business. But, they may hurt your business if you burn out your employees. Tired employees are unable to focus, and they are more likely to become irritated.

Additionally, when you understaff, your customers will have to wait longer for service. A long wait could affect the average amount a customer chooses to spend. It could also affect whether they choose to come back or not.

Understaffing Diminishes Employee Productivity

Another drawback from understaffing your business is the fact that productivity suffers. When you understaff your business, you force other employees to work harder and longer. 

Tired employees don’t have the motivation or the energy to be as productive as they could be. With a drop in productivity, your bottom line may suffer.

Exhausted Workers Increase Business Risks

Sleep deprivation affects your employees’ well-being. When employees get less than eight hours of sleep, they aren’t as alert as they should be. As such, they are more prone to injury. They may also injure one of your customers. 

If one of your employees injures one of your customers, then you could face a lawsuit. Even if you win the lawsuit, you’ll still have to invest revenue to protect your business.

Understaffing your business helps up front. But, it sets the stage for other financial problems for your business. When you understaff, you may increase your chances of a customer suing you or an employee injuring themselves. To resolve the problem and protect your business, purchase business insurance. You also should determine the optimal number of employees you need on staff each day. Knowing employee numbers helps you determine insurance coverage.