Please help me to draft an mail to employees for cost reduction during lockdown, in motivating way with commitment to pay deducted amount in specific period according to their performance. earn your salary kind of policy
From India, Delhi

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Can someone please suggest policy for cost reduction with salary brackets and percentage of deduction with mail message to all employees within today only
From India, Delhi
Dear Rammy2179,

You have not written what is the nature of your industry and what is your finished product, in what way the sale of your product or services has been impacted due to COVID-19 pandemic, what is the percentage of the employee cost against the total cost etc.

Reduction in wages and salaries of the persons employed in the company is one of the easiest ways of the cost reduction technique. Nevertheless, it reduces the morale of the employees as well.

In case if you are from the manufacturing sector then there always exists a great scope of cost reduction by managing the supply chain, both upstream as well as downstream.

Going further, there is always a scope of cost reduction by improving inter-departmental coordination. Occasionally there is a duplication of work, overlapping of some processes, gaps in communication and so on.

The scope of cost reduction that I mentioned above is the invisible one. That is why it gets neglected. In contrast, the reduction in staff salary is the most visible one. Hence it gets the priority.


Dinesh Divekar

From India, Bangalore

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