If you care about your people and want to retain your talents, we have 4 HR tips for saving your business cost without cutting any headcounts.
Hurts, but it’s true. Around 2 million Vietnamese people are at risk of losing their jobs. And two-thirds of businesses intend to lay off employees as an effort to save cost and stay afloat amid COVID-19, a nationwide survey found. We understand that the outbreak hits the economy tremendously, but is this the only way to survive in this uncertain time?
Well, probably it doesn’t. Why?
Because here we have 4 other HR tips for saving cost without laying off your staff:
Promote work from home policy
During the past few weeks, most businesses have practised working from home to comply with social distancing and protect their people. Now, the quarantine order is lifted, will you let all employees back to the office?
Think about the benefits of working from home. You can cut down on physical office expenses such as utility bills or rental costs. Your employees also gain more flexibility in daily activities and feel happier, even be more satisfied and productive while working remotely. Doing it right, it will be a win-win situation for everyone.
So, the question is, how to make it right to save costs and retain your people?
First, determine roles that can be done remotely. Equip them with essential tools – such as VPN network or collaboration apps, and training – how to manage teams remotely, for example.
Also, make sure you retain enough staff in the office to support on-site tasks.
Be transparent and communicate throughout the policy, work schedule, and your expectations for the team’s outcomes.
If possible, host a weekly virtual meeting to check-in with the others and keep the non-work interactions alive.
Check out other HR tips for saving costs by managing your workforce effectively through COVID-19.
Shorten working hours
Is keeping all employees full-time in this slowdown time too much for you?
If so, consider reducing working hours, or turn full-time into part-time employees, only temporarily for a few months. This can save you a small fortune from payroll expenses while keeping your talents around.
For example, if your staff normally work in an 8-hour shift at stores, consider shortening the opening hours to 6 hours.
Or if you always have 2 receptionists at the office, now let them work alternately. One person works from Monday to Wednesday, and the other works on Thursday and Friday. Then switch the schedule every other week so that they all work half the time compared to normal.
The key is, always communicate openly about any changes to your workforce. And clearly state that it’s only for the moment so that you can save cost without firing any employees. Let them understand and sympathize, not make them confused, suspicious, then quit.
Scrutinize each expense and negotiate with suppliers
Are you burning for office supplies that are rarely used?
Are you renting an office that is too spacious for your workforce?
And are you buying too much snack and drink for your cafeteria?
Even the smallest expenses can accrue over time. So, delve into all aspects of your operations and consider if you’re overspending somewhere.
Once you've identified expenses that can be saved, shop around, and negotiate with your suppliers to see if you can get a better deal. Amid COVID-19 and its economic impacts, offering better prices, and maintaining long-term business relations benefits both sides. It never hurts to ask anyway.
Still, if you already have good suppliers, don't go too far and urge them to give you a discount. It will not only adversely affect their service quality but also worsen your reputation and the relations between you two.
Outsource non-core functions
Even when things get better, you still need to tighten your belt to allocate budget on most crucial affairs. Then, consider outsourcing specialized demands to third parties, especially with one-time projects or any roles that are not profit-generating.
Just imagine. After this outbreak, you would need to hire countless – even hundreds or thousands - workers to restart the production processes. What if this is totally beyond the ability of your in-house recruitment team? Well, maybe you can employ new recruiters first. But then how will you deal with these new hires after you've already found enough workers?
Isn’t it irritated to open this can of worms?
So, set yourself free and stay focus on resuming your operations by working with a recruitment company. Plus, you will save significant additional costs for hiring, training, employee benefits costs, or payroll taxes.
Before doing this, and regardless of the functions you going to outsource, make sure you are choosing a reliable and professional partner. Look at their reputation, go through online reviews from their clients, or even ask for feedback from your connections.
Obviously, it’s not easy to do business and manage your workforce through COVID-19. But you're not alone! Adecco is always here and ready to provide you with HR solutions that best suit your business and your desires. Need to hire temporary staff? Or want to outsource non-critical positions? We got your back! Just fill in the form below, we will contact you shortly!
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