There are many different areas in which a company can look to cut their costs. But there is one area in particular that I believe should remain "untouchable". People. Whether it is training, or salaries, or benefit packages, the investment in your people will always remain your best investment.
Training should be of paramount importance to all companies. The growth and development of your people directly translates to the growth and development of your company. Training should be an ongoing process. Many companies will run a training seminar, only to never talk about it again. The expense of hiring and training a new employee is very high, so decrease your turnover and cut your costs by keeping your employees well trained.
Many companies have scaled back or even eliminated employee benefits and bonuses. It is common knowledge that payroll will always remain the most controllable expense, so it seems natural to institute pay-cuts. That is not the right way to go about it. Enforcing proper scheduling, time clock management, and employee productivity would be a better start. Existing employees must be treated well. Everyone understands that times are tough. With that comes negativity, a drop in confidence, a drop in motivation and ultimately a drop in performance. Prove that faith in your company and in your people by showing your appreciation for their work. Look for all the little things that you can do to save that money, before you take it away from your people. Those little things can add up exponentially, where a salary cut will result in a single fixed saving.
There are several Presidents and CEO's that have imposed pay-cuts on themselves. Now I may agree that most CEO's are grossly overpaid, but what message are you sending to employees, or even the customers, if you are publicizing that you can't even afford to pay yourself.
Training should be of paramount importance to all companies. The growth and development of your people directly translates to the growth and development of your company. Training should be an ongoing process. Many companies will run a training seminar, only to never talk about it again. The expense of hiring and training a new employee is very high, so decrease your turnover and cut your costs by keeping your employees well trained.
Many companies have scaled back or even eliminated employee benefits and bonuses. It is common knowledge that payroll will always remain the most controllable expense, so it seems natural to institute pay-cuts. That is not the right way to go about it. Enforcing proper scheduling, time clock management, and employee productivity would be a better start. Existing employees must be treated well. Everyone understands that times are tough. With that comes negativity, a drop in confidence, a drop in motivation and ultimately a drop in performance. Prove that faith in your company and in your people by showing your appreciation for their work. Look for all the little things that you can do to save that money, before you take it away from your people. Those little things can add up exponentially, where a salary cut will result in a single fixed saving.
There are several Presidents and CEO's that have imposed pay-cuts on themselves. Now I may agree that most CEO's are grossly overpaid, but what message are you sending to employees, or even the customers, if you are publicizing that you can't even afford to pay yourself.
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