The current economic climate demands creativity when it comes to increasing profits while keeping costs low. It’s tempting to start slashing the budget across the board, but unless those cuts can be implemented without a corresponding loss in productivity, you could be sabotaging your own net profit. Here are six ways you can creatively cut staffing costs without undercutting employee productivity.
1. Consider non-traditional working arrangements.
Many employees are willing (and even eager) to work from home rather than coming in to the office. If the work can be done just as efficiently from a remote location, don’t waste money on office space. Also, consider using contract or freelance work for jobs that don’t require a full-time salaried position.
2. Consolidate offices (and office staff).
With more employees working online from home, you may find that you don’t need as much brick-and-mortar office space. Reduce overhead by closing unnecessary locations or downsizing your current office. With less office space and fewer employees on site, you’ll be able to consolidate support staff as well. Tap into the capabilities of the support staff you do have for things like payroll and internal projects rather than just answering the phone.
3. Hold interviews and meetings over videoconferencing.
Travel expenses can eat up large portions of your budget. Keep those expenses to a minimum by conducting interviews and client meetings via videoconferencing whenever possible. Skype and Google Chat are both good free options.
4. Switch to VOIP
Trade your expensive traditional phone service for a Voice Over IP system. Low startup costs, free calling, direct dial lines for every employee, and a low monthly fee make VOIP one of the best moves you can make to cut costs without sacrificing efficiency. The system will pay for itself in less than a year.
5. Hire interns
Internships are a great deal for both employers and young professionals. You receive high quality, low-cost talent, and they receive on-the-job training and experience. When you’re ready to fill a position within the company, you have a ready-made candidate who already knows your company and has (hopefully) demonstrated the talent and work ethic you’re looking for.
6. Bring your employees into the conversation
Talk to people on the ground level about where cuts could be made. They may have an inside view on unnecessary spending that you don’t see.
When companies start talking about cost-cutting, employees start getting nervous about their jobs. And while you may ultimately have to reduce the size of your staff, these cost-cutting measures can help you keep necessary talent on the payroll, maintain a large enough staff to handle work demand, and reduce the amount you spend on staffing needs.
