When things start to slow the costs within your business come under scrutiny. Whilst looking into all of the costs is important, labour costs are usually at the top of the pile and rationalising them is critical. I have seen some innovative solutions employed by some of our clients in the last few months and I wanted to share these with you as a possible solution for your business...
Maintaining a body of knowledge within a business is very important, and whilst things may have slowed for you, sure enough before you know it things will speed up again. The cost of not retraining can be very high and can lead to errors and hidden costs within your business.
One solution employed by a leading Melbourne retailer is a 9 day fortnight. Whilst things have slowed they have managed to retain their workforce on a 9 day fortnight and therefore save one day’s pay per staff member per fortnight. Do the sums! This is a considerable saving and the staff love it. They are refreshed, enjoying their one day off per fortnight and happy with the thought that their job is safe!
Another client has taken the very upfront approach of team brainstorming to reduce costs while things are slow. Instead of making Board level decisions they have incorporated the team at all levels to get solutions. Some have opted for part time as it suits them, some have opted for job share with 3 month reviews and other significant costs have been employed within the business in terms of the use of out-sourced services and the cost of supply.
The ownership of the businesses position has become shared and the staff have taken responsibility for their spending decision making in light of the frankness of the senior management team! Good on them I say!
Similar to the first solution, a Sydney company has increased the holiday’s for this year to 6 weeks with 2 weeks unpaid. Again, the staff love it and the saving is considerable so it is a win win, whilst maintaining the body of knowledge in the company.
All in all, looking at innovative approaches that are inclusive with you team can bring huge benefit to your business, so before you make radical decisions to cost cut, consult, you might be very pleasantly surprised at just how on board your team is to being a part of the solution!
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