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In a retail business, payroll does not simply cover employees. It also encompasses management and owners of the business. The more money being spent on payroll, the less net profit the business makes.
Reducing the number of employees results in having to spend less money each month on payroll. The trade-off in profit, however, can be an increased workload on the employees, resulting in higher worker dissatisfaction.
So,
Successful businesses have reasonable payroll expenses, along with reasonable overhead costs.
