Are you working harder right now? Is your biggest expense your staff? Are you thinking about laying one (or some) off? Did you know you can implement some innovative cost saving ideas before you do that? Businesses preparing to thrive recognise that losing staff now means they lose their competitive edge in the future. There are simple things you can do now that really make a difference to your bottom line.
Here are 3 things businesses are implementing NOW to reduce their people costs:
1. Review your staffing mix.
Do you need to have everyone set up as permanent? Why not consider a mixture of casual, part time, full time, limit term contracts and trainees? You could save 20% of your wages cost by changing your 5 day workers to 4 days!
2. Reduce your liability.
Lower salaries – there are legal issues here, but in this environment, staff are often prepared to negotiate. Limit salary increases and paid overtime. Defer or reduce bonus payments. Keep annual and long service leave accruals to the allowable minimums.
3. Focus on Retention.
What is unique about your workplace? Why should your team stay and help you succeed? Offer work practices that are flexible for both of you. Rework superannuation salary sacrifice arrangements to assist with their cash flow. You will reduce your wages cost by 10% if you work on 9 day fortnights for a fixed period!
Make it easy for your people to get on with work in this economy. Talk to them more than you ever have before. Lasting relationships are built in hard times – this is true for your staff, your suppliers and your customers!
I challenge you to look from a different perspective and implement one or some of these strategies to prepare your business and team for great times to come. No one wants to let staff go, give these ideas a try before you get to that point.
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