What Payroll Can Tell You About Your Business
By Stacker
Published October 26, 2026
2:43 pm
A small business owner faces a dilemma: overtime has been steadily increasing for three months, and workload management is a concern. Hiring another employee could ease the burden but also adds to payroll, a delicate balance to maintain during times of close cash flow monitoring.
The initial impulse might be to look at the total payroll and question the affordability of an additional employee. However, ADP suggests a more insightful approach: understanding the underlying factors driving up labor costs.
Are employees consistently working extra hours? Are certain shifts hard to fill? Has the business taken on more work? Is revenue keeping pace with payroll growth? These questions paint a very different picture, guiding the decision to hire or reassess operational strategies.
Financial visibility is crucial for small business owners, who often juggle multiple responsibilities. Having centralized payroll data can make it easier to identify significant changes and inform strategic decisions.
According to ADP's May 2026 Market Pulse survey, one in four small business owners cite labor costs as a top concern, with nine in ten having made adjustments due to unmanageable labor costs.