Cost Cutting Strategies to Save Jobs in a Downturn - 4 Key Points to Consider!
It's a sad fact of life that during and economic downturn, there will be job losses.
No matter how hard everyone tries, some companies will buckle under the strain, and people will be left without jobs.
However, by being proactive, and looking for solutions before this happens, many companies can survive an economic downturn relatively unscathed, which means that their employees will still have a paycheck to come home to.
Here are 4 key points to consider when it comes to cost cutting strategies to save jobs in a downturn: 1.
Some Salary Is Better Than None If you are already in the throes of financial meltdown, you may be considering layoffs.
Why not rather consider offering all of your staff reduced working hours, with a proportionate reduction in salary? This way, all those families won't be left high and dry, but you'll still reduce costs.
2.
Trim the Fat In most offices, there is a considerable amount of waste going on.
It may be that you are buying expensive coffee, or that your stationary supplies are excessive.
There's always something to trim though, so look at your budget, and get rid of the sublime and the ridiculous, before you start cutting jobs.
Check whether your office is costing you money when you're not there - lights and air conditioning left on, leaky faucets and other money wasters eat into your budget quickly.
Don't let them replace people! 3.
Outsource There are many, many great freelancers and consultants out there these days.
It's no longer necessary to hire a full time accountant, legal adviser or even graphic designer, and while the going rate may be higher, if you're only using their services for a few hours or days, it's still way, way cheaper than hiring a new, full time staff member.
Whether it's a book keeper or a new sales rep, you're sure to find a freelancer that suits your needs, and your budget! 4.
Facilities and Equipment Many companies want to be positioned in the most prestigious areas, with the very best, leased equipment.
However, when it comes to a downturn, tightening belts is the name of the game.
Rather than laying off staff, which will affect productivity, and morale, try downsizing your facilities and equipment.
Look for cheaper office space.
Downgrade equipment rentals, or cancel contracts on machines you never use.
Many companies have more than one copier, for instance.
Why pay for two or more, if one will do the job? The truth of the matter is, when it comes to cutting costs and saving money, laying off staff should be the very last resort.
Not only will the staff who have been laid off suffer, but your company will too - this sort of drastic measure makes even staff who are left behind nervous, and you may find that productivity plummets, and staff you had hoped to retain decide that the grass is greener elsewhere.
No matter how hard everyone tries, some companies will buckle under the strain, and people will be left without jobs.
However, by being proactive, and looking for solutions before this happens, many companies can survive an economic downturn relatively unscathed, which means that their employees will still have a paycheck to come home to.
Here are 4 key points to consider when it comes to cost cutting strategies to save jobs in a downturn: 1.
Some Salary Is Better Than None If you are already in the throes of financial meltdown, you may be considering layoffs.
Why not rather consider offering all of your staff reduced working hours, with a proportionate reduction in salary? This way, all those families won't be left high and dry, but you'll still reduce costs.
2.
Trim the Fat In most offices, there is a considerable amount of waste going on.
It may be that you are buying expensive coffee, or that your stationary supplies are excessive.
There's always something to trim though, so look at your budget, and get rid of the sublime and the ridiculous, before you start cutting jobs.
Check whether your office is costing you money when you're not there - lights and air conditioning left on, leaky faucets and other money wasters eat into your budget quickly.
Don't let them replace people! 3.
Outsource There are many, many great freelancers and consultants out there these days.
It's no longer necessary to hire a full time accountant, legal adviser or even graphic designer, and while the going rate may be higher, if you're only using their services for a few hours or days, it's still way, way cheaper than hiring a new, full time staff member.
Whether it's a book keeper or a new sales rep, you're sure to find a freelancer that suits your needs, and your budget! 4.
Facilities and Equipment Many companies want to be positioned in the most prestigious areas, with the very best, leased equipment.
However, when it comes to a downturn, tightening belts is the name of the game.
Rather than laying off staff, which will affect productivity, and morale, try downsizing your facilities and equipment.
Look for cheaper office space.
Downgrade equipment rentals, or cancel contracts on machines you never use.
Many companies have more than one copier, for instance.
Why pay for two or more, if one will do the job? The truth of the matter is, when it comes to cutting costs and saving money, laying off staff should be the very last resort.
Not only will the staff who have been laid off suffer, but your company will too - this sort of drastic measure makes even staff who are left behind nervous, and you may find that productivity plummets, and staff you had hoped to retain decide that the grass is greener elsewhere.
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