How can I rein in unsustainable costs for my small company without hurting staff morale?

  • How can I rein in unsustainable costs for my small company without hurting staff morale?
    Independent.t. E.
    Question I own a small computer company and a team of around 30 people, which, as a rule, well-motivated and with the ambition of the company. However, spending was running out of control and I have to make some changes to the business to try to cut costs. How can I do this without losing people? Some perks are more sustainable. The staff seem to think, there are a lot of free money as we are fine, but I need to reinvest in the business to make it work.
    https://www.independent.ie/business/in-the-workplace/how-can-i-rein-in-unsustainable-costs-at-my-small-company-without-hitting-staff-morale-37207130.html
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Question I own a small computer company and a team of around 30 people, which, as a rule, well-motivated and with the ambition of the company. However, spending was running out of control and I have to make some changes to the business to try to cut costs. How can I do this without losing people? Some perks are more sustainable. The staff seem to think, there are a lot of free money as we are fine, but I need to reinvest in the business to make it work.

And this is a very relevant question, since we’re fast approaching full employment across the country, engagement and employee retention has never been so important. It is becoming increasingly difficult for companies to attract and retain talented and skilled workers will always be problems for business owners to manage costs and remain competitive. It is a delicate balance between the morale of the employees and the company’s performance and should be implemented very carefully.

This example has a positive starting point is that employees are on Board with the company first and foremost, this culture should continue to cultivate. To do this, we can recommend the following:

1 a message about all the changes: it has been said “that the staff seem to think, there are a lot of free money”. The first step for successful management of this process is open communication with all staff. It should be noted that corporate culture is critical to business and engagement of staff and benefits are crucial for this. Long-term plans for the business should be explained and the reasons for possible changes.

2 active participation of employees in this process: the success of any change management process often depends on the participation of all parties. One way to do this is to start ‘I Propose a contest of entrepreneurial initiatives, enhance competitiveness, and to ask employees for their ideas. The winner, who comes up with an idea that saves more money, gets the reward.

3 changes to employee benefits: all that was previously paid to/agreed with the employee in terms of employee benefits is now part of their working conditions and cannot be legally altered without the written consent of the employee and with appropriate notice.

4 a fact-find before you decide: before to make decisions about changes to the benefits we would recommend a consultation. The perception of employee cost for benefits will depend on many factors such as their age, their marital status, their interests, their career goals or their specific needs at the time.

Beyond these monetary benefits, there are several ways to get buy-in from their employees to stay with You in long term. Often they are perceived as more valuable workers than monetary benefits.

5 Performance Management:

If you do not have a formal annual or semiannual evaluation of the system, you must enter one. In surveys of employees in various sectors, the two things that come again and again are communication and feedback. Employees want to receive feedback on how they perform. They want to make it clear what is expected of them. They want to hear when they do a good job.

6 development: some employers are of the opinion that the provision of development opportunities means spending big on training and make large financial commitments to College courses or external certification. This is not always the case.

7 learning: the culture of training, development and promotion should not come with a heavy price tag. You have to make sure that there are ways to develop Your organization and opportunities for growth in the company. If there are senior people in Your organization who have worked their way up in the company, make sure they share your story!

8 staff involvement: try to collaborate with staff more. The more your employees participate in Your organization, the more they feel part of it. This can be done in a number of ways, and this is something that may take a few attempts.

Caroline McEnery, the HR Suite MD, is a member of the low pay Commission and the jury Commission for employment relations

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