Most Managers are often on the look out for new ways to boost their bottom line. Many tend to focus on increasing their profits. But another method of increasing margins is to hunt for ways to cut costs and eliminate any inefficiency or waste within your business.
But cutting costs doesn’t necessarily mean cutting corners. Trimming fat doesn’t translate into diminishing the quality of your product or service. It simply means shifting focus from improving revenues to reducing overhead through a variety of means.This can be particularly difficult when a business’s financials seem healthy.
Our Cutting the Fat series will offer some helpful hints to allow businesses to zero-in on waste and trim it effectively.
Tip 1: Boost Workforce Productivity
It’s no real surprise that there’s often serious fat to trim when it comes to a company’s employees. According to some studies, approximately 25 to 30 per cent of employees’ time is often wasted during the workday.
So how can managers help cut that number down and boost productivity? Happy employees are often the most productive. And there are multiple techniques to help encourage a sense of contentment amongst the members of the workforce.
- Offer positive feedback more frequently. Rather than waiting for an annual review, provide positive reinforcement more often.
- Provide creature comforts rather than pay rises. That’s not to say you shouldn’t offer raises when they’re well deserved, but some studies show that money is not the best motivator when it comes to staff morale. Instead, incorporate small luxuries into your staff cafeteria, offer a professional development budget or training courses to help staff develop skills, or invest in experiences for your employees.
- Examine your work environment. While most companies don’t have the budget to trick out their offices like Google, making small changes in the working space can significantly boost productivity. Research out of New Zealand has linked efficient office layouts and ergonomic furniture alone with a productivity increase of up to 64 per cent.
Watch for the next in our Cutting the Fat Series – Productivity Tip #2:
The old adage is true: it takes money to make money. Which is why updating your company’s technology, while a large upfront cost, can cut costs by increasing efficiency in the long run.