There are 11 practical tips for reducing labor costs and increasing productivity in a business, including combining vacation and sick leave, automating time and payroll systems, and providing employees with predictable work schedules. It is important to understand and calculate the cost of direct labor, while also focusing on employee retention, automating tasks, streamlining processes, training employees, and balancing cost savings and product/service quality. Tying wages to revenue can also help control labor costs. When outsourcing, it is crucial to prioritize value over cost. Seeking assistance from companies like ProService Hawaii can also be beneficial in managing labor costs.