Ways to Optimise and Save Your Company Money
July 1 2019 - What small or medium enterprise isn't trying to save money these days? Balancing a corporate budget is a difficult task, especially when you consider how many aspects there are to running a business.
Cutting costs can also be tough because you don't want to negatively impact your employees or your customers in any way, but sometimes companies need to be leaner to remain profitable. Here are some ways to optimise and reduce costs without reducing staff.
Moving some in-house services or activities to an outside agency or service provider can help attain cost savings. Outsourcing some human resource functions can help reduce operational costs and save time; most companies that outsource are part of a professional employer organisation, which handles payroll, hiring, onboarding and training programs, managing benefits, and employment rule compliance. This leaves your human resources staff with time to focus on bigger picture tasks.
Also, think about outsourcing non-human resources functions to help take tedious tasks off your employees' hands and free up their time to be more productive. Some digital marketing services like SEO and content marketing can be contracted out for little cost, relative to the benefits of improved employee productivity.
Involving your employees in the cost-cutting decision is crucial so as not to hurt morale at the office. Take everyone's opinions into serious consideration, so nobody feels as if their voice was ignored, and manage expectations as best you can.
Automate some processes
Traditionally, human resources is a position where a lot of tasks are done manually, but thanks to new technology, that's all changing. Automation is taking over the industry, making tedious tasks and processes much more efficient and giving HR professionals time to focus on strategising and decision-making.
HR automation allows organisations the benefits of lower storage and printing costs, avoiding compliance risks or rule violations, improving organisation and organisational growth, and reducing data entry errors. All of these benefits can help your company save money in some way.
Shift your work schedule
Your company's most expensive resource is, without a doubt, your employees and their time. You are paying for skilled workers, so any wasted time is wasted money. At the same time, an unhappy employee is an unproductive worker, and cutting salaries or implementing wage freezes aren't a popular choice.
Consider shifting your work schedule from a 40-hour workweek to a 35-hour workweek, or cutting back from five working days to four. 60% of workers say they their work-life balance is poor, and a poor work-life balance leads to high stress and general dissatisfaction at work. By adopting a shorter workweek, your staff can enjoy more time off, regain a positive work-life balance, and be more productive at work, which will save you money in wasted time and inefficiencies. Also, if less staff are working longer hours, you could save on some overtime as well.
Making cost-cutting decisions is never an easy task because there are a lot of factors at play and many moving parts to consider. If implemented correctly, the above tips can help improve your company's bottom line while keeping employees and customers satisfied.