Strategy #2: Involve Employees in Cost Reduction
Many good ideas can come from employees because they see waste and inefficiency up close. Companies such as Allied Chemical, Coca~Cola, General Electric, and General Foods have saved millions of dollars in energy, time and material costs by tapping employee input.
Ideas to Consider
- Have each department sit down with employees regularly to identify cost saving opportunities.
- Consider using a facilitator as many times employees don’t want to offend managers or supervisors. For example, in one company I know, employees were uncomfortable speaking up about a time wasting project management process because the CEO created the process and was notoriously defensive about it.
- Choose to act on the opportunities that have the best combination of high payoff and low effort needed to implement.
What to focus on
- Energy saving ideas
- Operational inefficiencies
- Duplication and overlap of effort
- Internal reports
- Unnecessary meetings
- Opportunities to share best practices
- Options to eliminate positions when people leave or retire
- Ways to reconfigure jobs to improve outcomes
- Benchmarking to identify opportunities through better practices.
Next: Strategy #3 — Reducing HR Costs
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