Organizations need to cut their
overall cost for various reasons. The most common reason is the incurring loss.
The recession had a very bad effect on the economy across the world and
companies were forced to shut down their overseas branches. With the increasing
competition and the pressure to stay in the business, the companies are forced to
cut down the cost. There are many corporate
cost cutting ideas, but the most
companies prefer to lay off their employees. This again will give rise to
unemployment and add extra burden on the economy.
Instead of laying- off employees,
companies can use various other measures to cut down their costs. Whether you
are a small business or large, here are five corporate cost cutting ideas to help you save more and lessen the
expenditure.
·
Cut Back on Office Supplies: Office supplies makes for an at least
a quarter of the total expenditure. Office supplies can range from daily to
monthly supplies. The Companies looking to cut cost, needs to cut back on the
office supplies. Generally, when there is no pressure, the staff uses the
supplies quiet lavishly. You can easily cut down the expenditure on the office
supplies, such as paper, pen, ink, chair, tables and others. You can ask your
staff to be frugal about them and utilize the things fully before taking the
new one.
·
Hold Increment for the Time Being: It is the time the year for increment
and your employees are looking forward to it. But, as a wise employer you need
to put on hold any increment. You need to tell your employees what the current
situation is and let them know how long the increment will be put off. This is
again an important method of cutting down the overall cost.
·
Put On Hold New Addition or
Renovation work: Organizations
do have to maintain the workplace or add new features, which also include
hiring new employees. If you are looking for cutting cost, you need to put on
hold any renovation or construction work which is not that important. This will
help you cut down the cost and help your organization get stable again –
financially.
·
Cut Down On Departmental Activities: Departmental activities such as
employees’ training programs need to be cut down to reduce the overall cost. The
Companies need to determine what the different departments spend on various
programs. Apart from those that are highly important, rest all the others
activities must be stopped till the organization’s financial position becomes
stable.
·
Telecommuting: One of the best corporate cost cutting ideas is to allowing your employees to
telecommute from home. With today’s technology now it’s easy to communicate
from any part of the world. Telecommuting can reduce your annual cost, by
eliminating the need for an office space, office supplies, commuting
expenditure, employees’ benefits, and health insurance among many others.
Organization looking for effective corporate cost cutting ideas can choose
from various options. One of the effective ideas is telecommuting, which is
fast becoming a norm in the corporate world.
