Though the retrenchment rate in the US has reduced for April 2009, it doesn't meant that the hard time is over. I believe it will still take some time before the economy bounces back. It's still a hard time for huge and small organizations to stay afloat.
Why not practise the cost saving ideas below to prevent $$$ from flowing out from your organization?
1) Control New Purchases
Do you really need to buy the new PC set for your staff? Or the old PC still is still functioning for at least another year? By controlling new purchases especially huge purchases, it does help to save cost in an organization.
2) Limit Staff Overtime Claim
Did the Human Resource or Audit Department really check through the staff overtime claim? Do your staff really need to work overtime or they are just taking the opportunity to get extra cash? Make sure, the overtime claim is with valid reason and with approval from department head. Overtime claim not only mean you are paying the staff for the extra works , but also for those additional hidden expenses (electric, water and heater cost).
3) Review Company Functions
Is it really necessary for your organization to organize monthly, quarterly or yearly functions? I meant grand and expensive functions at 5-star hotels. Or, is there a way to trim down cost by organizing the same function at the meeting rooms or company hall? Most important part is to make sure the objectives of the functions are met.
4) Reduce Entertainment Cost
This is another area where staff can misuse the benefits given to them. Give your employees the limit of entertainment cost. And have them verified before they bring their guest for entertainment.
5) Advertisement Cost
During this hard time, consumers are more reserved to respond to advertisement. Review your advertising strategy as advertisement is one of the most expensive cost paid by mos organizations.
The above cost saving ideas sound better than retrenchment isn't? You can practise the above cost saving ideas even when the economy is back to the bullish style. Let's build a financially healthy and profitable organization.