Along with implementing measures to increase sales, employers may want to consider cost-reduction strategies in the workplace to reap or maintain a healthy cash flow. One Deloitte survey of 210 senior executives at Fortune 1000 companies reported that 88 percent of respondents envisioned making moves to reduce costs over a 24-month period, irrespective of their companies’ performance. The reasons companies place importance on eliminating costs include maximizing profitability and focusing on development and growth, according to Wall-Street.com.
For cost-reduction initiatives to be successful, it’s best to ensure that they’re sustainable and in line with your company’s culture. It’s essential to clearly communicate your objectives to your employees and secure their commitment to any behavior or mindset changes that will be necessary to carry out your vision.
Here are some ideas for devising effective cost-management strategies.
Incorporating technology in the workplace is a top way businesses can enhance efficiency. It not only saves time and money but also reduces human error. For example, shifting from paper to electronic portal can reduce the amount of time it takes for your employees to make a change to their health plan.
In addition, consider rethinking business travel. Virtual meetings might work just as well for your nonlocal clients. Instead of sending employees to conferences, consider having them attend webinars. This can save considerable time and money. Plus, webinars are often on-demand, so your employees can learn when it works for them.
Save a Tree
Reams of paper can quickly get pricey and a great deal of printing at your organization may be unnecessary. Taking a digital approach can save you money. Instead of making fliers for your company events, send out e-vites. Get rid of handouts for meetings and use PowerPoint presentations.
Staff will appreciate not having their desks inundated with documents that go stale almost immediately. To encourage digital adoption, keep track of paper savings and post results where employees can see. Remind them that going digital not only saves money and the environment but also makes document retrieval faster and more convenient.
Save Energy Passively
Simple tweaks can make a big difference. For example, switch over to a programmable thermostat. Save money on air conditioning or heating by implementing a system that automatically provides heat or air conditioning in the morning and turns itself off in the evening.
From there, try installing blinds if you don’t already have them. Drawing the blinds on windows can minimize light penetration on warm days, reducing the need for air conditioning. On cold days, pulling up the blinds to maximize passive heating is a smart energy-saving strategy.
Finally, encourage employees to switch off computers and other electronics after hours. Powering down computers, desk lights, printers and photocopiers at the end of each working day — when no one is using them anyway — can easily reduce your electricity bill.
Don’t forget to track your initiatives and periodically review them to identify which are proving most effective. If you need more ideas for cost-reduction strategies, reach out to your employees for suggestions. Even offering a small reward for the most effective ideas will be worth the savings in the long run.
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