reduce costs

Reduce Costs Without Killing Employee Morale

One of the biggest questions at the forefront of many CEO’s minds is how to reduce costs without killing employee morale. Nobody likes to wait in limbo as, one by one, employees lose their jobs in the name of downsizing; so what are the other options?

Change Your Mindset

First, you should stop seeing your employees as only a cost. They bring skills and perspectives that your company needs to thrive. Instead, start thinking of your employees as just as important as your number one client. After all, without them, your business can’t function.

Offer Additional Vacation Time 

As part of the hiring package, you should have paid vacation time. But if you’re looking to cut costs, you could also offer up a voluntary unpaid vacation in addition to their regular time off. Most people will jump at the chance to get away from their cubicle even if it means they aren’t getting paid in dollars for it. Sometimes, the respite from work is just what a person needs to come back fully charged.

Eliminate Overtime to Reduce Costs

Overtime can be a tricky cost for a lot of companies. Sure, it’s great to get more work done, but you should really examine how much overtime your employees are using. It may be more cost-effective to take in less work that can be accomplished during a regular work week rather than pay the fees in overtime.

Be Open About Costs

As you make cost-effective changes, make sure you keep your employees in the loop. Let them know that you are trying to tighten the belt, so to speak, so the company can continue growing in the right way. People are incredibly understanding when they know what is going on, and will more than likely respect and accept those changes if it leads to a better situation overall.

 

For more employee morale boosting advice, check out Tricks to make Your Employees Like You