The COVID-19 is a critical and serious situation that is having an adverse impact on the global economy. This pandemic is also forcing companies to opt for cost cutting strategies and are actively working to reduce workforce costs.
CoronaVirus is a global pandemic that has taken everyone by shock. Offices and workplaces have also had to adapt to new things and change approached to be able to operate safely. The first major change that was encountered was the shift from physical workplaces to remote offices.
But now it seems like companies are also facing economic problems as many offices have now started to lay off workers. But laying off workers and downsizing is not the ultimate solution. A company needs employees to achieve targets and get work done. Moreover, considering the given economic situation, the job market is doing very poorly. In order to make sure that people can feed their families and survive during these testing times, it is important for them to be able to keep their jobs and earn a proper living.
Therefore, there are several other ways, other than downsizing, through which companies are trying to cut down the costs and manage the company expenses in these difficult times. Here are some of the things that can be done to be able to save company funds and yet ensure that the employees are kept on board.
Making Use Of IT Support:
The first thing that companies did was to make use of efficient IT Services. These services helped shed the load and automate processes. The use of IT Support has not only sped up certain tasks but has also cut down the cost. Many IT support tools like employee monitoring softwares, firewalls and authentication tools and online collaboration platforms and meeting rooms have gained immense popularity over the course of the last couple of months.
Remote Working Practice:
Switching to remote working practices has also led to some monetary relief. When working in an office, there are plenty of expenses that we never take into account. For instance, the bills, rent for the office, property taxes and even expenses that are incurred due to the use of office resources like phones and printers etc. Stationary items can also add up and consume a major chunk of the company’s funds. However, when employees work from their own homes, most of these expenses are reduced automatically. Some companies who had rented offices have also decided to vacate the space till things normalize and the company operations can move back to the normal mode.
There are plenty of office responsibilities and tasks that can be outsourced. When companies outsource responsibilities, it is just a one-time expense. Also, whenever tasks are outsourced or are handed over to freelancers, the company does not have to bear the extra expenses like insurance, health benefits, bonuses etc. Therefore, the same amount of work can be done in a way more affordable and budget friendly manner.
Outsourcing is a great option for tasks that are essential but not regular in terms of frequency. For instance, tax filing needs to be done annually, therefore it can easily be outsourced so that the company does not have to pay someone for an entire year when the employee is actually needed once a year only.
Reducing Working Hours Or Considering Short Time Working:
Another great idea to reduce the expenses of the company that are otherwise spent for paying employees is by reducing working hours. Many companies pay the employees by the hour. During the COVID-19 pandemic, the businesses and companies have also suffered in terms of orders and clients. Therefore, the workload has decreased significantly.
Given this situation, companies have reduced the working hours of their employees. As a result, the amount of money that is spent to pay the employees. Another great approach many companies have opted for is to hire short term working employees. There were many offices that were in need of new employees for certain tasks and responsibilities. This is similar to the approach of outsourcing tasks.
Changing Company Policies:
The Corona Virus situation is something that is unique. It is a situation that has never been encountered before. Therefore, there is no set of rules that can be found to deal with this scenario. But as the situation evolves, so should the company policies. The current situation is an example for this.
In order to save money and manage the company expenses properly, some company policies can be changed and altered. For instance, since the employees are working on a remote basis and are not traveling to reach the offices. Therefore, the fuel expenses can be cut down. At the same time, international travels are not in the picture for quite some time so those policies can also be held back till everything returns back to normal. CarReg number plates from Wolverhampton are one of the UK’s leading dealers offering help and advice.
The policies regarding paid leaves, annual holidays, bonus and increment and even other employee benefits too can be revisited and adjusted according to the given situation.
The given situation is difficult. Everyone is suffering and there is this overall air of anxiety and uncertainty around everyone. And the first priority for everyone is to keep afloat and be able to support their families during this tough time.
Economy all around the world is suffering and businesses and companies are struggling to make sure that the company manages the expenses properly. Many companies have started to downsize and let go of employees.
Rather than letting go of employees, companies should stand by the workers and support them as much as possible. There are a lot of other ways through which the company can keep the employees on board but at the same time, save money. In the current situation, make sure that your employees are at ease. Show some empathy and assure them that the company’s support is with them. These are dark times, but there is light at the end of every dark tunnel.