In the face of economic challenges, many employers are exploring ways to reduce costs. Before thinking about staff reductions, which can be expensive and damaging in the long term, consider these seven techniques that protect your employees. 

1. Review and Renegotiate Contracts: Take a closer look at your contracts, including insurance, health plans, 401K plans, and leases. Analyze these agreements and be open to renegotiating terms. Do not hesitate to explore the possibility of switching to competitors when it makes sense and do not necessarily wait for the end of term, there is often more openness than we think.
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2. Optimize Office Space: Given the rise of remote and hybrid work models, not everyone needs a dedicated office. Review your office space requirements and adjust your leasing contracts accordingly.
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3. Encourage Efficient Time Management: Encourage employees to utilize their Paid Time Off (PTO). Not only can PTO become a financial liability if unused, but it also boosts employee productivity and well-being (the European model!). Additionally, you can facilitate unpaid leave, close the office during holidays, and minimize overtime (for non-exempts and contractors).
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4. Control Travel Expenses: Examine your travel expense policies, including reimbursement conditions and baselines. Transition to a per-diem model, which can streamline expense management and provide clarity for employees.
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5. Implement “Design to Cost” Strategies and Products: Take a closer look at your core products and expenses, review your Products roadmap, explore ways to consolidate and reduce costs without compromising quality or functionality. This might involve changing suppliers or eliminating non-essential features, but will get your business savings through economies of scale.
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6. Embrace Automation: Invest in process automation to enhance efficiency and data quality within your organization. By automating routine tasks, your teams can focus on higher-value activities.
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7. Conduct an IT Expenses Audit (licenses, services, hardware): IT expenses can be a significant concern depending on your business. Perform a comprehensive audit of your IT expenses, including licenses and cloud services. Identify and retain only the essential tools for your core operations. For more insights, consider the guidance of experts like Andy Smith from Penon Partners, as discussed in his video on IT expense management.

Do you need help or additional insight on cutting your costs? I would love to talk. Schedule a call with me here.