How to Reduce Costs Without Hurting Morale02/25/2019
You realize the need to reduce costs. Now you must consider where, when, and the effects of the cuts on your business. You don’t want to reduce costs at the expense of employee loyalty. Knowing that employee and customer confidence and loyalty go hand-in-hand, adds another dimension to your dilemma.
The Bottom Line: Reduce Costs Without Losing Quality
Your goal is to reduce costs to improve your bottom line.
- Take time to review the factors that add the most value to your business quality. Prioritize these, moving those with the highest quality yield to a “wait-and-see” column.
- Engage employees
in the expense review process.
- Requesting employee participation helps morale and adds potentially useful ideas.
- Those working directly with tasks know how to streamline processes, and therefore costs.
- Employees who work with customers know the factors that add the most value to your services/products.
Employee Associated Expense Reductions
Audit staff related expenses, from space and travel, to salary and benefits. Keep an open mind as you find methods to creatively save money and morale.
- Explore flex time and telecommuting.
- Reduce meeting/conference/travel expenses by meeting online and purchasing downloads of conference materials.
- Review benefits packages to determine if you are receiving the most cost-effective benefits.
- Determine if any benefit contracts can be renegotiated for fiscal conservation.
- Work with employees to identify perks they can do without in favor of preferred options.
Reduce Invisible Consumables
Electricity and technology are necessary, yet each offers opportunity for cost reductions without limiting quality. Employees can help you identify cost-saving ideas.
- Save on energy.
- Equipment that is turned off still costs money because of a draw on phantom energy. Plugging devices into accessible power strips helps reduce energy expenses.
- Conduct an energy audit to determine if air and heating systems are current and well maintained.
- Consider energy-efficient lighting.
- Look at
connectivity costs. Are you getting full advantage of your tech dollars?
- Are you using technology that is not giving a good return on investment?
- Negotiate a package that may upgrade quality as it reduces costs.
- Review credit card fees for hidden losses.
For more employee morale advice check out Management Tricks to Make You More Likable