Hi, I am working as admin in one ofthe IT company.How can I reduce the cost in operations without demotivation of employees.Can you suggest me. Uma
From India, Hyderabad
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From India, Hyderabad
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I am working as admin in one ofthe IT company.How can I reduce the cost in operations without demotivation of employees.Can you suggest me. Urgent:huh:
From India, Hyderabad
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From India, Hyderabad
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Hi,
Even I'm working in one reputed company. I have sent the following emails to employees to control costs. You can implement the same:
Dear All,
Let's all take some initiative to control the following costs in our branches:
Printing Cost:
- All printers in branches should be set to print in Duplex (both sides of paper) as mandatory. Printing on one side should only be done when necessary. If you face any problems, contact the IT engineer immediately or log an IT call on the green page.
- Reuse brown or even mail envelopes for packaging within the offices.
- Think twice before printing documents. If the document or data can be stored on the hard disk, there is no need to print and file it.
- Before printing, check the document in the Print Preview section.
- Use the back pages of obsolete documents or scratch papers for printing nonsensitive, draft, or interoffice communication. These obsolete documents can also be used as mini notepads or note cubes within the department.
Courier Cost:
- Multiple covers sent to one location should be combined in a single envelope addressed to the FO in that location, who will redistribute them as per the names on the covers inside the main envelope.
- Do not send any personal couriers.
Stationery Cost:
- Ensure all exiting employees submit all their stationery back to reception (at FO) for recycling to reduce our stationery costs.
- Reuse recovered paper clips, fasteners, folders, and envelopes if they are in good condition.
- Reuse binders, box files, and pocket files by placing new labels on the spine.
Electricity Cost:
- During the day when the sales team is out in the field, Split AC's can be turned off based on requirements or kept on a round-robin basis.
- Turn off computer monitors when on break or not in use.
- All toilet lights must be turned off when not in use.
Other costs:
- Do not waste paper cups or tissue rolls.
We need all of your support and cooperation to control daily and monthly consumption and expenses in your branches.
Regards,
Jayshree Vasavada
Regional Administration
From India, Mumbai
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68Even I'm working in one reputed company. I have sent the following emails to employees to control costs. You can implement the same:
Dear All,
Let's all take some initiative to control the following costs in our branches:
Printing Cost:
- All printers in branches should be set to print in Duplex (both sides of paper) as mandatory. Printing on one side should only be done when necessary. If you face any problems, contact the IT engineer immediately or log an IT call on the green page.
- Reuse brown or even mail envelopes for packaging within the offices.
- Think twice before printing documents. If the document or data can be stored on the hard disk, there is no need to print and file it.
- Before printing, check the document in the Print Preview section.
- Use the back pages of obsolete documents or scratch papers for printing nonsensitive, draft, or interoffice communication. These obsolete documents can also be used as mini notepads or note cubes within the department.
Courier Cost:
- Multiple covers sent to one location should be combined in a single envelope addressed to the FO in that location, who will redistribute them as per the names on the covers inside the main envelope.
- Do not send any personal couriers.
Stationery Cost:
- Ensure all exiting employees submit all their stationery back to reception (at FO) for recycling to reduce our stationery costs.
- Reuse recovered paper clips, fasteners, folders, and envelopes if they are in good condition.
- Reuse binders, box files, and pocket files by placing new labels on the spine.
Electricity Cost:
- During the day when the sales team is out in the field, Split AC's can be turned off based on requirements or kept on a round-robin basis.
- Turn off computer monitors when on break or not in use.
- All toilet lights must be turned off when not in use.
Other costs:
- Do not waste paper cups or tissue rolls.
We need all of your support and cooperation to control daily and monthly consumption and expenses in your branches.
Regards,
Jayshree Vasavada
Regional Administration
From India, Mumbai
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Hi,
I have gone through the above, which is a very practical cost-cutting exercise. In addition to the above, I would like to suggest the following at an organizational level:
1. Resort to outsourcing of jobs, which is a very effective cost reduction tool.
2. If your organization is bigger and uses a number of direct telephone lines, consider EPABX with ISDN-PRI scheme, which works out to be cost-effective. Any EPABX seller will explain the benefits.
3. For electricity saving, use electricity-saving equipment available in the market. Also, use CFL bulbs in place of conventional lighting. You will also help a national cause.
4. Some organizations have a system of frequent structured meetings of executives, managers, or staff on a weekly or monthly basis. The experience is that these meetings cost a lot and produce very little. Instead, other communication modes can be used to convey or get feedback, cutting down the number of meetings.
5. Encourage innovative lateral thinking among employees over B.P.R. at all levels, and you will receive very practical and effective suggestions.
6. Travel costs can be controlled by encouraging train and bus travel instead of air travel wherever possible.
7. Always work out input to output ratios for each activity or process and let concerned employees know about them.
These could be the best 7 habits of highly effective people.
Thanks,
S.P. Suryavanshi.
From India, Hyderabad
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I have gone through the above, which is a very practical cost-cutting exercise. In addition to the above, I would like to suggest the following at an organizational level:
1. Resort to outsourcing of jobs, which is a very effective cost reduction tool.
2. If your organization is bigger and uses a number of direct telephone lines, consider EPABX with ISDN-PRI scheme, which works out to be cost-effective. Any EPABX seller will explain the benefits.
3. For electricity saving, use electricity-saving equipment available in the market. Also, use CFL bulbs in place of conventional lighting. You will also help a national cause.
4. Some organizations have a system of frequent structured meetings of executives, managers, or staff on a weekly or monthly basis. The experience is that these meetings cost a lot and produce very little. Instead, other communication modes can be used to convey or get feedback, cutting down the number of meetings.
5. Encourage innovative lateral thinking among employees over B.P.R. at all levels, and you will receive very practical and effective suggestions.
6. Travel costs can be controlled by encouraging train and bus travel instead of air travel wherever possible.
7. Always work out input to output ratios for each activity or process and let concerned employees know about them.
These could be the best 7 habits of highly effective people.
Thanks,
S.P. Suryavanshi.
From India, Hyderabad
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Some other ideas for cost-cutting could be:
1. Reduction in mobile or phone reimbursement entitlements. Proper communication is required for the same, as each employee must also understand the need of the hour.
2. Picnics, get-togethers, etc., to be immediately checked.
3. All travels to be justified and approved by the highest authority, especially air travel.
4. The disposable glasses to be replaced by glass tumblers for water consumption for optimization.
5. Implement a five-day work week for effective reduction in operational costs, such as power, fuel, stationery, pantry, and transport. This may include extended hours on weekdays to compensate for any loss in working hours if required.
Regards, Salil:idea:
From India, Delhi
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1. Reduction in mobile or phone reimbursement entitlements. Proper communication is required for the same, as each employee must also understand the need of the hour.
2. Picnics, get-togethers, etc., to be immediately checked.
3. All travels to be justified and approved by the highest authority, especially air travel.
4. The disposable glasses to be replaced by glass tumblers for water consumption for optimization.
5. Implement a five-day work week for effective reduction in operational costs, such as power, fuel, stationery, pantry, and transport. This may include extended hours on weekdays to compensate for any loss in working hours if required.
Regards, Salil:idea:
From India, Delhi
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Dear All,
Due to a slowdown in the company's business, everybody has to cut down the cost of each expense to a minimum extent.
In this regard, we suggest the following measures to be implemented immediately:
1. Tea should be served to the employees once a day in the afternoon.
2. Reduce electricity charges related to air conditioners by maintaining the AC temperature at 24 degrees and above, and switch off ACs whenever possible to cut current usage by half.
3. Everyone should limit the use of lights/fans and switch them off before leaving the workplace/office. In showrooms, if there are suggestions to reduce the electricity bill (e.g., by using CFL bulbs) without affecting sales, inform the GM.
4. Reduce wastage of factory water and drinking water.
5. Cut all petty cash expenses by at least 25%.
6. Travelling by car now requires prior permission from the General Manager. Use monthly bus/train passes instead of auto/car hire charges.
7. Properly plan business travel, subject to prior approval from the General Manager, and reduce travel expenses to essential levels.
8. Avoid unnecessary xeroxing, stationery, and printing, and reuse papers where possible. When printing, use "eco" mode. Contact the IT department if you're unsure how to set "eco mode."
9. Set all computers, especially monitors, to power-saving mode after 5 minutes of idle time. IT department must ensure this.
10. Avoid unnecessary telephone and internet usage.
11. Use all company amenities solely for official purposes.
12. Each location's production and maintenance should ensure the proper utilization of machinery and equipment with 100% efficiency to reduce costs.
Regards,
Rekha
From India, Mumbai
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Due to a slowdown in the company's business, everybody has to cut down the cost of each expense to a minimum extent.
In this regard, we suggest the following measures to be implemented immediately:
1. Tea should be served to the employees once a day in the afternoon.
2. Reduce electricity charges related to air conditioners by maintaining the AC temperature at 24 degrees and above, and switch off ACs whenever possible to cut current usage by half.
3. Everyone should limit the use of lights/fans and switch them off before leaving the workplace/office. In showrooms, if there are suggestions to reduce the electricity bill (e.g., by using CFL bulbs) without affecting sales, inform the GM.
4. Reduce wastage of factory water and drinking water.
5. Cut all petty cash expenses by at least 25%.
6. Travelling by car now requires prior permission from the General Manager. Use monthly bus/train passes instead of auto/car hire charges.
7. Properly plan business travel, subject to prior approval from the General Manager, and reduce travel expenses to essential levels.
8. Avoid unnecessary xeroxing, stationery, and printing, and reuse papers where possible. When printing, use "eco" mode. Contact the IT department if you're unsure how to set "eco mode."
9. Set all computers, especially monitors, to power-saving mode after 5 minutes of idle time. IT department must ensure this.
10. Avoid unnecessary telephone and internet usage.
11. Use all company amenities solely for official purposes.
12. Each location's production and maintenance should ensure the proper utilization of machinery and equipment with 100% efficiency to reduce costs.
Regards,
Rekha
From India, Mumbai
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Hiiiiii Ajith, Your Cost Cutting pdf is amazing,evryone shud go through it once,it’ll make clear the existing situation of Cost Cutting. Thanks, Shweta
From India, Delhi
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From India, Delhi
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Dear Uma,
There are various suggestions to control costs. Thanks to the participants. I have devised a training program whereby my concentration would be on controlling the invisible cost. The title of the program is "Managing Economic Slowdown through Invisible Cost Control."
It is a 2-day training program suitable for junior and middle-level managers. You can arrange a training program for the staff of your company. Please confirm your email ID, and I shall email you the details of the training program.
Regards,
Dinesh V Divekar
dineshdivekar(at)yahoo.com
From India, Bangalore
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There are various suggestions to control costs. Thanks to the participants. I have devised a training program whereby my concentration would be on controlling the invisible cost. The title of the program is "Managing Economic Slowdown through Invisible Cost Control."
It is a 2-day training program suitable for junior and middle-level managers. You can arrange a training program for the staff of your company. Please confirm your email ID, and I shall email you the details of the training program.
Regards,
Dinesh V Divekar
dineshdivekar(at)yahoo.com
From India, Bangalore
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You can go lean - It is the best proven technology. Toyota is the least affected by economic slowdown.
Scoop: US Japanese car-makers still doing well despite recession
From India, Pune
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Scoop: US Japanese car-makers still doing well despite recession
From India, Pune
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Dear All Contributors,
Thank you for posting good suggestions on cost reductions. They are very good ones. One suggestion from me is that all of us who are involved in cost reduction exercises should implement the same at home front as well. Then we can truly reap the fruits of cost reduction.
Regards,
ajsahib
From India, Mumbai
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Thank you for posting good suggestions on cost reductions. They are very good ones. One suggestion from me is that all of us who are involved in cost reduction exercises should implement the same at home front as well. Then we can truly reap the fruits of cost reduction.
Regards,
ajsahib
From India, Mumbai
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Good ideas for admin personnel . for industry you can log into
From United Arab Emirates, Dubai
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From United Arab Emirates, Dubai
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Train Travel instead of Air Travel at junior level mgmnt. even travelling in 3rd AC will save a lot of cost as compared to air Travel.
From India, Mumbai
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From India, Mumbai
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Hi, can anyone suggest me regarding my problem.
I have made one mistake by involving my close friend in my same department (HR). Now, he is opposing me through his nonverbal cues, implying questions like "Who are you to ask me? The company is the one giving the salary." I am mentally very stressed. Please, can anyone give me suggestions?
From India, Bangalore
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I have made one mistake by involving my close friend in my same department (HR). Now, he is opposing me through his nonverbal cues, implying questions like "Who are you to ask me? The company is the one giving the salary." I am mentally very stressed. Please, can anyone give me suggestions?
From India, Bangalore
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Hi, Please send me the calulation sheet of gratuity & Bonus and its freezing amount. Vijay K. Thukral
From India, Delhi
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From India, Delhi
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In this recession period, all HR big bosses are talking much about cost-cutting. I am very much agreed with the points and presentations seen on Cite HR, but surprised because the leadership personnel themselves will not be ready to cut down their salary by 20% on their CTC even if they are drawing a salary around or more than 01 Crore per annum. Holding increments for subordinates is okay with them, but why do they not have that sense of giving or sacrifice? Why do they not want to understand that they are costing too much for the organization? Why do they not think like Gandhi Ji? It means they are not true well-wishers of the organization, state, and nation.
This type of selfishness should be a question mark on their sincerity. Why have they not initiated until now that they would be more happy to reduce their CTC by 20%?
Please think and give me a solution on how to make them understand that what they are doing is selfishness and equally an act similar to what a terrorist does in selfishness.
Regards,
Shiv Kumar
From India, New+Delhi
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This type of selfishness should be a question mark on their sincerity. Why have they not initiated until now that they would be more happy to reduce their CTC by 20%?
Please think and give me a solution on how to make them understand that what they are doing is selfishness and equally an act similar to what a terrorist does in selfishness.
Regards,
Shiv Kumar
From India, New+Delhi
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Here are some HR Department cost control strategies:
- Improved efficiency within your department
- Used the Internet for hiring/recruitment
- Adopted/changed HRIS system/software
- Launched HR Intranet or Web-based HR applications
- Improved staff training programs
- Outsourced one or several HR functions
- Set new HR staff performance goals
- Adopted new hiring procedures/tests to weed out "bad" employees upfront
- Reduced internal HR staff
- Cut back on staff travel, conferences, etc.
- Added employee self-service features
- Used benchmarking techniques to assess HR costs against those of competitors
- Moved traditional HR functions to line managers
Cheers,
Cost Control & Reduction Resources (link updated to site home) (Search On Cite | Search On Google)
From Indonesia, Jakarta
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- Improved efficiency within your department
- Used the Internet for hiring/recruitment
- Adopted/changed HRIS system/software
- Launched HR Intranet or Web-based HR applications
- Improved staff training programs
- Outsourced one or several HR functions
- Set new HR staff performance goals
- Adopted new hiring procedures/tests to weed out "bad" employees upfront
- Reduced internal HR staff
- Cut back on staff travel, conferences, etc.
- Added employee self-service features
- Used benchmarking techniques to assess HR costs against those of competitors
- Moved traditional HR functions to line managers
Cheers,
Cost Control & Reduction Resources (link updated to site home) (Search On Cite | Search On Google)
From Indonesia, Jakarta
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Hi,
Please provide details on how you are going to organize the theme for two days. Kindly include comprehensive content promptly, along with the faculty profiles and the cost for conducting the program for a group. You can reach me at
.
Regards.
From India, Hyderabad
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Please provide details on how you are going to organize the theme for two days. Kindly include comprehensive content promptly, along with the faculty profiles and the cost for conducting the program for a group. You can reach me at
Regards.
From India, Hyderabad
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The Thrifty Manager
Cutting Costs the Smart Way
From India, Madras
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Cutting Costs the Smart Way
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There are smart ways to trim your costs.
©iStockphoto/bluestocking
Your boss has just asked you to cut 10% from your department's budget, starting immediately.
Easier said than done, right?
As you carefully study your expenditures, you're faced with a seemingly impossible task. How do you decide what to cut? Where can you save the most money without hurting team morale, or lowering people's productivity? Should you eliminate coffee and morning donuts, or cut back on office supplies?
Most organizations have to cut costs at some point. In today's economic climate, it's more important than ever for businesses to watch their budgets, and to make sure they eliminate any unnecessary spending.
When cost-cutting is down to you, however, it can be difficult to know where to start. Cutting the right things at the right time is a delicate balancing act.
In this article, we look at some easy ways to cut your budget, and offer some suggestions to get you started.
Where to Start - Doing the Easy Things
Once you sit down with your budget, there's a chance you might feel overwhelmed. While your team might not need everything that's on the list, some items - like company vehicles or holiday parties are nice to have.
If that's the case, where do you begin?
Easier said than done, right?
As you carefully study your expenditures, you're faced with a seemingly impossible task. How do you decide what to cut? Where can you save the most money without hurting team morale, or lowering people's productivity? Should you eliminate coffee and morning donuts, or cut back on office supplies?
Most organizations have to cut costs at some point. In today's economic climate, it's more important than ever for businesses to watch their budgets, and to make sure they eliminate any unnecessary spending.
When cost-cutting is down to you, however, it can be difficult to know where to start. Cutting the right things at the right time is a delicate balancing act.
In this article, we look at some easy ways to cut your budget, and offer some suggestions to get you started.
Where to Start - Doing the Easy Things
Once you sit down with your budget, there's a chance you might feel overwhelmed. While your team might not need everything that's on the list, some items - like company vehicles or holiday parties are nice to have.
If that's the case, where do you begin?
- Establish the essentials: It's important to identify the things your department absolutely cannot live without. Every business is different, of course, so necessary expenditures for one company aren't always essential for another.
- Identify the 'luxuries': Once you create the list of things you can't live without, look at what's left. Some of these are probably luxury items; expenses that aren't absolutely necessary, and could easily be cut - for example, fresh flowers in the reception area.
- Review your 'maybe' items: These are the things you're not so sure about. When you look at these less obvious expenditures, assess the costs against the tangible and intangible benefits of these items.
A good example might be your department's networking parties. They're fun and useful, but you might at first think that you could cut them. However, when you socialize with valuable contacts during these events, they often lead to referrals and sales. You'll therefore have to judge whether these parties are a necessity or a luxury. If you expect to gain more in sales than you spend, then it may be worth keeping parties in the budget.
Another example could be office supplies. For instance, your team might use large amounts of paper. Perhaps your company buys top-quality, expensive paper, but is this necessary? Of course, you use these items to do your work, but you could save by buying a more economical brand of paper.
Practical Budget Advice
Cutting costs is never easy, but here are some practical tips you can apply when trimming your budget:
Cutting costs is never easy, but here are some practical tips you can apply when trimming your budget:
- Cross-train your staff: Many companies hire temporary workers when regular staff are sick or on vacation. But, if several members of your team are cross-trained - where they learn the skills of a job function different to their own - perhaps they can cover those duties, in short shifts, in addition to their regular workload.
- Focus on efficiency: For instance, if several of your team members spend valuable time every week or month writing a report, determine whether this is really necessary. Could they spend that time on something that's more valuable? Does another team in another department create a similar report, and could you combine efforts to save time? Another benefit here is that if your team members are working more efficiently, you may be able to cut back on overtime payments.
- Cut back on the work you do: Taking this further, look at the work your team does, and ask whether you need to do everything that you do. Do your 'customers' still want each and every report you produce, and each and every service that you provide? Trimming the work you do will reduce your reliance on temporary staff and overtime.
- Negotiate with your suppliers: You may be able to secure discounts for early payment, or large-quantity purchases of items that your team uses regularly. Explore special deals to see where you can save.
- Buy less expensive equipment and vehicles: If you're about to replace your car or truck fleet, consider purchasing less costly and more fuel-efficient models. The same goes for office equipment: used printers and fax machines are often available for a fraction of what you'd pay for new ones. Also, consider sharing these resources, and costs, with another department within your organization.
- Make telephone calls over the Internet: Software such as Skype allows you to make and receive telephone calls on the Internet. As long as the person you're calling has Skype too, these calls are free. This can therefore help you to save on telephone costs.
- Investigate videoconferencing or teleconferencing: If your team travels a lot for meetings, explore the costs of setting up videoconferencing or using teleconferencing instead (again, Skype offers good teleconferencing facilities). This can help you save on travel costs.
- Use less costly supplies, and use fewer of them: Cutting your team's morning coffee might cause some bad feelings. Instead, why not use ceramic mugs, and stop paying for paper cups that get thrown away? If you currently buy an expensive brand of coffee, switch to one that's more economical. And how much energy can you save by turning off computers and lights at night time?
- Get bids on all of your services: You might be surprised at how much you can save by shopping around for the best prices on everything from shipping to office supplies.
- Cut back on magazine subscriptions: Your office or department might subscribe to industry or trade journals. These can be valuable resources for keeping your team up to date on trends and best practice, but make sure you carefully evaluate the costs against the rewards. Several team members may be able to share one subscription, and many publications offer digital versions for a reduced price.
Communicate With Your Team
If you're forced to start making cutbacks, tell your team what's going on. While no one wants to feel like they're with a company that's having financial problems, everyone knows that times are hard, and they probably don't want information kept from them. As far as you can, let your staff know what's happening, and why.
It's also important to realize that your team members are a valuable resource. They could have some really creative ideas for ways to cut costs. After all, they're the ones out there working every day. They might know of practices or expenditures that could easily be cut for the entire company - and you could ask them to come up with their own suggestions.
And, ask your team to examine where they might cut costs in their own daily routines. This could help empower them, and make them feel involved - even in a small way - in the decision-making process.
Key Points
Many people immediately think of layoffs when they hear about corporate cost-cutting. However, your people are your most valuable assets. Aim to cross-train, cut back on non-essential work, and reduce costs in supplies and business systems before you reduce your staff. Focus on making your department more efficient. And remember that even savings on small things, like turning off computers at night, can help reduce costs.
If you're forced to start making cutbacks, tell your team what's going on. While no one wants to feel like they're with a company that's having financial problems, everyone knows that times are hard, and they probably don't want information kept from them. As far as you can, let your staff know what's happening, and why.
It's also important to realize that your team members are a valuable resource. They could have some really creative ideas for ways to cut costs. After all, they're the ones out there working every day. They might know of practices or expenditures that could easily be cut for the entire company - and you could ask them to come up with their own suggestions.
And, ask your team to examine where they might cut costs in their own daily routines. This could help empower them, and make them feel involved - even in a small way - in the decision-making process.
Key Points
Many people immediately think of layoffs when they hear about corporate cost-cutting. However, your people are your most valuable assets. Aim to cross-train, cut back on non-essential work, and reduce costs in supplies and business systems before you reduce your staff. Focus on making your department more efficient. And remember that even savings on small things, like turning off computers at night, can help reduce costs.
From India, Madras
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