5 proven tips to reduce the cost without firing anyone | Mintly
5 proven tips to reduce the cost without firing anyone | Mintly

5 proven tips to reduce the cost without firing anyone

 

Firing an employee is the worst decision for any company no matter whether it's a big one or a small startup, it is the last thing that anyone wants to do. In fact, no one is willing to do it though at least once in the entrepreneurial career everyone faces it for sure. However, like every problem, there are some solutions, and you can do more without firing employees if the concern is to reduce the budget. There are thousands of ways to save the cost that people tend to ignore and unbelievably these are not only effective but also help to run the business for a long time.

Virtual workplace

While starting the business, the most important thing is to have an office but before opening it first you should ask yourself is it necessary to open this? If the address is the concern, can't it be your home for sometimes? Renting an office is expensive and in fact, the most headache part for every company, unless it is their own property. If most of the works don't demand the presence in the office, you should think again about renting a space. Instead, you can offer remote work opportunity which is a popular trend right now, but in case, the work is related to data, you should concern about it. However, if still, you need an office, then consider renting a small room or co-working space which will be cheaper than taking a complete workplace as a whole. 

Reduce office equipment

While hiring, companies provide the equipment like computer, telephone and many more that they hardly use. According to a study, except the computer, 85% of employees never use the products given by the company to use during the work hours. Apart from this most of the organizations spend an unnecessary amount to decorate the office which is a complete waste of money. Another way to cut the expenses is to reduce the amount of spending on paper and ink as in a digital era, apart from the legal work, the use of paper can be avoided.

Discuss with employees

Employees are the part of your organizations and whatever happens within the company have a direct and indirect impact on them. Whether you face the financial crisis or not, it is better to encourage the workers to take an active part in decision making where everyone can put their opinion without hesitation. Though it is not necessary to accept all suggestions, however, some can work for sure and most importantly, employees will feel more connected with the companies. The beauty of having regular discussion with employees regarding controlling the budget make them more responsible as they able to realize that any wrong suggestions can affect the organization and their job as well. 

Reduce the time

It may sound different, but have a good impact for both employee and employer. Instead of firing them, consider reducing the work hours where you can cut the salary as well because of the less working time. If the usual working time is six days on a week, consider reducing it to four days so that you can offer them two days unpaid leave which they can use for their personal life. This unpaid leave will give them an opportunity to explore their hobbies or to pursue their dreams or at least they can do freelancing and if they are newcomers, by doing professional courses can improve their skills. On both sides, this will be a win-win deal.

Cut the salaries of top management

While going through a tough time, it is not wise to put the entire pressure on employees because this is not a right way to balance the budget. When you decide to control the spending, it should work in both ways otherwise one side pressure will not last long.  The best way to balance it by reducing the salary of senior people as well which will help to run the business for a long time without doing any layoff.

 

Share your ideas for reducing the budget. We will publish it for sure.

 

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