Effective Strategies for Cost Cutting and Employee Cost Reduction

Hi friends,

Could you please provide me with some ideas on how employees can be asked to cut costs? I need to present this to my boss. I would appreciate your help.

Apart from the areas mentioned below, such as:
1) Housekeeping
2) Traveling
3) Training
4) Employee costs, etc.

Please suggest other areas and how to implement them.

Thank you,
Raj

Savings on communication costs can be achieved by negotiating with various vendors. You can customize your services according to your requirements.

Please let me know if you have any further questions or need assistance with anything else.

Hello Raj,

Cost has been a major factor that is worrying all the companies after this recent recession. Even our company is taking various steps towards cost-cutting. Some of them are:

1. Less telephone calls.
2. Less electricity usage (fans, lights, ACs, etc.).
3. Compulsory switching off of computers when not in use/before going home.
4. Less stationery usage.
5. Usage of one-sided papers.
6. Less usage of papers.
7. Reduced travel expenses/claims.
8. Using less than the mobile eligibility.
9. Usage of stairs than lifts (good for health too!).
10. Less usage of company vehicles/saving fuel in turn.
11. Fixing a day for sending courier, hence accumulating all the letters/items and sending at one time to one address.

Friends, this is indeed a very crucial period for all the employers, and hence it is the responsibility of the employees to be a part in reducing the cost. As you all know, one rupee saved is one rupee profit. (Hope we might be the lucky ones to get this back as a hike during our next appraisals.)

All the best.

Switch off all the lights at lunchtime. I am a government servant; everyone knows that government employees never sit on time. Lunch for officers is from 2 to 2:30 pm, and for employees from 1:30 to 2:00 pm. Therefore, the administration has ordered that power be off between 1:30 to 3:00 pm.

Hello Raj.

My specific suggestions for cutting back on the cost of training your employees during these difficult times are as follows:

1. Provide more self-help workbooks and on-the-job aids.
2. Conscript local experts or coaches to take the place of some training sessions.
3. Cut training sessions that do not add value to the organization.
4. Reduce participant contact time for face-to-face training.
5. Review and rationalize your list of training suppliers.
6. Review material costs and printing practices.
7. Replace original graphics with stock images.
8. Enroll employees in courses at local colleges and universities.
9. Relocate seminars held at off-site convention centers.
10. Demonstrate how your training courses help achieve solid organizational objectives.

I explain each of these points on how to cut the training budget at http://www.businessperform.com/articles/cutting_training_budget.html

I hope this helps.

Les Allan
Author: Training Evaluation Toolkit
www.businessperform.com