You may not be losing money, but your business could spend more than necessary on some areas.
An invisible cost-saving area is essentially an asset or resource that is budgeted and for which costs are already expected. Imagine buying a coffee to go every day. You have already budgeted for the cost, and you don’t question it. However, the coffee shop fails to promote their loyalty program, which you are eligible for, and which would save 15% of the cost every day. This would be an example of an invisible cost-saving area, an area you didn’t know you could save money.
Typically reducing business expenses focuses on the big lines identified as part of a business audit: Saving time, reducing waste, improving processes, etc. But what about the invisible cost-saving areas in the business?
Motivate your team for real
Every business makes a conscious effort in equipping its teams for a productive and collaborative environment. Collaboration tools, team-building events, and smart automation strategies are some of the favorite solutions. Yes, you can’t afford to neglect the team morale. Team recognition, using employee rewards software solutions, can make a huge difference. Indeed, it helps improve the mood, which, in turn, improves collaboration, creativity, and productivity. Indeed, generous wages and a collaborative work culture can attract and retain talent. However, showing appreciation for your employees’ work will help talent shine.
Enhanced stock management
Stock management strategies can be challenging, as the company needs to prepare for fluctuations and predict demand. If you have a stock management strategy in place, it probably also involves an element of waste. It is accepted that a small portion of your stock may not be usable for a variety of reasons:
- damaged items
- lost items
- items that went missing once in storage
Regular stock checks and updates can help keep on top of issues. But simple changes such as requesting more supplier quality checks and appealing to your employees’ honesty in the warehouse can reduce waste. Strict and punitive strategies are counterproductive! Therefore, it’s important to communicate positively about the issue. Similar issues are also frequent in common areas where restroom or kitchen items are prone to increase costs by “going missing”.
Introduce a mistake-friendly culture
Creativity is the mother of innovative improvement. However, creativity means experimentation and errors. When you try to create something new, you are likely to get a few things wrong along the way. Unfortunately, an office culture that is quick to point out mistakes without considering the big picture encourages staff to stick to known concepts, patterns, and solutions. As a result, they can’t develop solutions that would be more effective than the current processes. It is important to welcome individual thinking and promote brainstorming.
Remove control over employees’ productivity patterns
In the wake of a post-pandemic work environment, many companies are introducing a hybrid style that combines the home office with a few days a week in the office. The idea is to create a flexible environment for the team. However, the hybrid work style ends up pitting companies and employees against each other. It is a promise of fake flexibility, which affects morale, productivity, and cohesion. Remote working options are gaining in popularity for employees.
In conclusion, your employees are your most significant assets. Creating a work culture that encourages them to become the best they can be, maximizing their creativity, productivity, motivation, and honesty can go a long way. The more you support them, the more they will support the business.