In some industries, employment costs make up almost 50% of a firm’s expenditures. It’s understandable that when executives look at the bottom line, payroll stands out as an easy area to cut. Here are some alternative places to look for cost-cutting before considering a workforce reduction:
Eliminate or Reduce Perquisites –
While not the most popular option, changing the workplace insurance plan to one with a larger deductible can reap incredible savings over a single year. If a particular bonus is a little pricey, consider nixing it. Cutting back on non-essential spending can add up quickly.
Use an Existing Hire Instead of a New Hire – With a growing workload, try using overtime as a means to cover demands. Hiring a new employee will cost more than offering an existing employee a way to earn some extra income.
Offer a Schedule Change in Exchange for a Salary Freeze – The typical schedule is arranged in five-days-a-week, eight-hours-a-day time blocks, try thinking outside the block! Offer employees a schedule of four, ten-hour work days to overcome the fact that no raises were given out this year. This gives employees the choice of a schedule that could better fit their lifestyle, while not having to experience a decrease in their standard of living. Additionally, when several employees choose this option, a healthy cost-savings results.
Go Paperless – Look for ways to reduce printing and paper usage. Not only will this help the environment, but it will also help cut overhead by saving on ink, paper and copier maintenance.
Go Online for Faxing Needs – Along the same thread of savings as going paperless, finding an online fax service can again help reduce the costs associated with toner, paper, parts and maintenance.
Why all the emphasis on keeping employees? Employees are a company’s most powerful marketing tool. They’re the living, breathing embodiment of corporate culture, and they represent a significant investment that shouldn’t be ignored.