Times are tough, so lots of businesses are cutting corners and tightening their purse strings. Can you do that without alienating your employees or sacrificing quality and customer satisfaction? As a matter of fact, you can—and more easily than you might imagine.
Cut Unnecessary Positions
Image via Flickr Kevin McShane
Sometimes, certain positions simply aren’t necessary. There are cheaper ways to fill them, which is something every manager, supervisor, or boss should carefully consider. Do you have someone in charge of scheduling jobs? Think about using job scheduling software instead. Does somone physically pay your invoices or total employee hours? There are software options for that as well. Your office likely has a latest computer, so why not use it for the betterment of the company? Have one person run the system and save money while making the office more efficient.
Play Around with the Numbers
Image via Flickr by Unhindered by Talent
Sometimes, you have to play around with money. The adage says that it’s far better to make less money than to lose a job entirely. There are several ways to reduce the money you’re paying out in your business:
- Cut out raises across the board, but make sure that goes for upper-management as well; they typically make more money, and if they continue getting raises, it will affect the morale of the team
- Institute a pay cut altogether—but, again, make sure it’s all the way across the board
- Stop giving bonuses at the end of the year or at the end of the quarter, but make sure no one gets a bonus, regardless of their position
Change Up Your Space
Image via Flickr by ianqui
How expensive is your office? Is the rent extremely high? It’s time to think about downsizing. Changing your space and transferring to a new office building that doesn’t cost as much definitely saves money without compromising your quality. If there are positions in your company that lend themselves well to telecommuting, think about that too. Odds are you have several employees who would love to work from home. In fact, the money they save on gas and travel might make up for any possible pay cuts. Ask for volunteers first, to gauge your employees’ reactions.
Stop Funding Wasteful Ventures
Image via Flickr by Ken and Carol Maul
Do you send your employees on a lot of business trips? Do they attend a lot of lectures, panels, or meetings? Here’s a more important questions: do any of those meetings end in more revenue for your business? If not, it’s time to cut them completely. While making contacts is certainly helpful, it’s not worth it if you end up losing money.
If your office has lots of parties, dinners, and similar events, it’s time to reduce those as well. They keep up morale, yes, but they also cost a lot. You have to pay for the food, the drinks, the venue rental, the wait staff, and so many other things. You end up losing quite a bit of money. If you don’t want to eliminate these events entirely, limit them to once or twice a year and set a tighter budget.
Sometimes you have to make sacrifices but you can still please your workers. Have you tried implementing any cost-cutting ideas?