How to Cut Expenses Without Cutting Employees or Hours
When you’re responsible for the bottom line, you need to make some difficult decisions. Those with a basic understanding of business theory will recognize your employees constitute one of the most significant costs for any business. But people need jobs, and cutting back on staff or hours can have a negative impact on a business’ ability to perform.
So, how can businesses save money without cutting into the personnel? Sometimes it takes thinking outside the box, but there are ways to do it. Finding some additional cash through revision of internal processes or secondary costs can make the situation for everyone in the company better. Here are a few things you can try.
Eliminate Waste and Get Green
Businesses use vast quantities of consumables: paper products, plastic utensils, tissue paper — the list goes on and on. In many cases, workers have just become accustomed to having them around, so it’s easy to fall into the trap of assuming they’re necessary.
However, you might be able to recoup valuable funds by eliminating the waste. Asking employees to begin bringing reusable coffee cups is a start, but what about a large area of waste you’re not seeing: electricity?
Most businesses still use halogen lightbulbs. Depending on the size of your building, you might be better served by a switch to LED or energy-efficient fluorescent lights, but both solutions will result in using less electricity. That means a lower energy bill.
Check the appliances in your office to make sure they’re ENERGY STAR-compliant, and have your IT team review power settings for computers and other equipment. You can even outsource some of your computing power to the cloud, which will save you bundles of power.
Efficient Water and HVAC
Water and heating/cooling costs are another constant spend for any office. You can start by establishing a set temperature and eliminating access to control panels. Your HVAC system uses the most energy when it changes temperatures.
Check the fixtures on the faucets and toilets in your building to see if they’re water-efficient. If they aren’t, you’re not only throwing money down the drain, but wasting precious water. Make sure your water heater is set correctly so you don’t have to burn BTUs bringing things back to temperature.
Promote Wellness for Lowered Insurance Costs
You might not know many insurers offer discounts for people who are physically fit. Encourage your office to get active, and you could end up with more in the company coffers. For example, some companies offer a discount for anyone who can run a nine-minute mile. That goal is attainable for many fit adults. The savings are real, and your staff will live a healthier life.
Reduce Vehicle Costs
If your company operates a fleet of cars or trucks, consider downsizing or switching to hybrid or electric vehicles. It might require an upfront spend, but in the long run, you’ll be helping the environment and spending less money.
These are just some of the ways you can bring costs down and keep everyone on the same schedule. Morale tends to drop when major reorganizations occur, so before you look at staffing changes, be sure to investigate these other ways to save.