Managing your administrative and operational costs may be one of the best decisions you should make this year as a business owner. Why? While the commercial landscape is slowly picking up from the wake of the pandemic last year, it has presented much uncertainty regarding managing top talents in your firm. As an employer you could potentially be experiencing a volatile jobs market.
A study by Microsoft revealed that 41% of the global workforce would consider changing jobs this year. While this sudden shift can be traced to economic instability, changing generations of workers, and the likability of remote jobs, your costs must be judiciously managed.
Hiring new employees can be expensive. How do you do so in such an unpredictable jobs market without wasting company funds?
Implement Overtime for Certain Employees
With most of the United States attempting to move on from COVID-19, businesses are ramping up hiring. With so many firms hiring some workplaces may not be able to fill positions as quickly. Those deemed as essential workers may end of carrying out the bulk of the operations. Invariably, this means that employers may have to pay their remaining staff more for overtime.
If you are currently facing this problem, you should overhaul the entire overtime process. Talk to your employees and see what works best for everyone.
Reduce Physical Paperwork
Business owners might think releasing funds for the regular purchase of paper, ink, postage, or mailing supplies might not cause a dent on the business finances. But, according to a study, small offices spend about $1,844 on office supplies per employee annually. In addition, offices employing over 200 workers pay about $632 per employee yearly.
To manage recurrent costs, it is essential to go paperless. Critically review and digitize your transactions. You can also make the switch to a digital bill payment system and invoice, which you can file and save accordingly on your PCs and to the cloud.
Because admit it, stacking physical paperwork is unappealing and would only clutter workspaces. You also need to consider the fact that it is not eco-friendly.
You should print only when it is necessary to do so.
Implement Cloud Computing In-house
Another way you can curb costs is to implement web-based cloud computing services in-house. By so doing, your business will eliminate third-party services paid to outsource.
Your workforce can take advantage of the cloud to email marketing, customer scheduling, expense account management, and even invoicing without external intervention.
Reduce Office Space and Implement Remote Working
One of the many problems of increased expenses is as a result of the size of the workforce at the premises. However, you can implement an intelligent solution: opt for a smaller, hybrid office space. Many workers in this jobs market may specifically be looking for remote working.
Offer non-essential workers the option of working from the comforts of their homes. This is an offer most people can not resist. Why? Remote working is here to stay. Initially, it was relegated to freelance workers and virtual assistants. However, during the year-long pandemic, a lot of businesses implemented remote working to keep their businesses afloat.
You can opt for smaller office space, cut down on rent expenses, and introduce the hybrid workspace. This works by splitting your workforce into essential employees who will be working on-site and non-essential employees working remotely.
Thus, you should invest in new computers and software that would make remote working seamless.
Negotiate Lower Rates with Vendors
You can also manage crippling costs by renegotiating with your vendors for a lower price. Chances are, due to the economic meltdown, your vendors are more likely to accept a lower rate than lose you altogether.
Put your negotiation and persuasive skills to work. If pay cuts or lay-offs are necessary you should discuss with your HR manager the option to delay raises instead of implementing more drastic measures.
The use of landlines is gradually going extinct. Thus, if your business is making use of them, know that it is an unnecessary expense. Your customer care could make use of VoIP, smartphones, and virtual phone lines.
Telecommunication giant AT&T has already phased out landline service. It is possible that other telecom companies will follow suit. You should move with the trend and incorporate these emerging changes in your business.
Buy Refurbished Equipment
Purchasing new, retail-price office equipment is an expensive venture. To reduce cost, make a move to buy refurbished equipment. Why? They are as good as the new ones you want to buy.
Is your office lacking desks, chairs, and other essentials? Order fairly-used items and shave off a lot of expenses.
Understand that you may carry out some improvements on the refurbished items.
Cutting down costs is crucial at a time like this when economic stability is still uncertain. With such a fluid jobs market and the potential need to hire more employees managing your costs could be the difference in between affording an essential employee or letting them walk. These aforementioned tips will guide you in making the best decision to limit expenses.
You can also reach out to us to see how we can assist you in managing your costs.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.