While everyone has been affected by the downturn in the economy, there is still more you can do to minimise the damage of the recession on your organisations. Living leaner does not have to mean only slashing jobs, although sometimes this may be necessary. There are many smaller alternatives that, when added up, can make a difference to your bottom line. HRd outlines some possible initiatives for you to take in order to reduce spending.
Banked Time- Employers can move to a banked time system, where any overtime hours worked can be taken as extra banked time instead of overtime. Make sure to implement a strict set of procedures and ensure managers approve all banked time worked. Banked time worked is paid out at the same rate of overtime, so 1 hour worked = 1.5 hours of banked time. Implement HRD's Lieu Time Policy.
Mandated Unpaid Days Off- Some firms have introduced a number of mandated “unpaid days off “for all employees. These companies have indicated that, once minimum manpower coverage levels have been met, they will endeavour to approve requested unpaid days connected to weekends or scheduled vacations. Use HRD's Unpaid Days Off Letter.
Review your Benefit Premiums with your Benefit Provider- Your rates may be artificially higher than they should be based on current risk and/or experience.
Reduce Dependency on Employment Agencies - Offer employees a “finder’s fee” (i.e. $500) for recommending individuals who are subsequently hired and successfully complete the probationary period; $250 at hire and balance paid after probation.
Re-Bidding Policy- Institute a companywide re-bidding policy. Many companies are willing to “sharpen their pencils” to maintain your business without any compromise in their level of service.
Take Your Employees’ Pulse- We tend not to ask for help in cost cutting ideas from our employees. If you request that every employee submit at least one idea to save the company money, this simple approach may yield significant savings. As a morale booster you may consider sharing a percentage of any actual savings realized with the employee who first presented the cost-saving idea. Ideas must be dated and submitted in writing to ensure the initial employee suggestion is rewarded in the case of duplications. Save the company money, get a bonus!
Reduce External Training Costs- Have in-house “subject experts” deliver training to share their skills and experience in formal learning opportunities.
Final Thought
When every penny counts and saving jobs is paramount, each unnecessary expense will take you closer to the edge. Use the ideas laid out in this article within your company to reduce costs and save jobs.