Trying to save money while running a business can be tricky. A lot of the time, people will think that to save the company money, they should cut corners and cutback bonuses and rewards for employees. While sometimes that may be true, that doesn't have to be the case.
There are many ways a company can save money without hurting the bottom line and its employees. Some methods might require you to be a little creative, while other ideas are reasonably straightforward. Either way, the end goal is to save the company as much money as possible.
If your business is in the boat of needing to save money, here are three tips to help you out.
Make Your Business Green
Although it might seem like it will cost you more money upfront, in the end, going green will save you more money than before. If you can make the building more energy efficient, your utility bills will eventually decrease. If you are looking at the San Francisco commercial real estate market for a new building, keep how energy efficient it is in mind.
Switching out light bulbs for highly efficient ones will lower your light bill significantly. Change out any appliances for energy efficient ones. The more changes towards a green business you can make, the more you'll save money down the road.
Keep Your Good Employees Happy
Keeping your employees happy won't just be good for the business overall, but it will also be good for the business' bank account. An unhappy employee is likely to leave for a different opportunity. You are then left with having to fill that position.
Having to replace an employee is likely to cost you, at a minimum, 16 percent of the annual salary for that position, and that is for an entry-level position. If you have to replace an executive position, the cost jumps to roughly 200 percent of the annual salary. So, if you are trying to save money, you cannot afford to lose your staff.
Offer Shorter Hours for Staff
Now, this may seem like a contradiction for a successful business, but imagine how much time in the day is wasted? A study done in 2017 found that the average employee wastes roughly five hours a week on their cellphone doing non-work related things. That means you are paying them not to work, plus they are not bringing in the money they should be.
By offering employees the opportunity to work four days a week instead of five, or switching to part-time hours, you can cut back on the amount of wasted time. Part-time employees are more likely to stay focused to get as much work done in a shorter amount of time. Don't push the matter, however. Leave the option on the table and let your employees decide.
If you are looking for ways to save your business some money without hurting the reputation of the organization and your employees, consider implementing these three tips. Turning your company towards being more energy efficient, keeping your existing employees happy and offering shorter hours at work will all help to save the company some money down the road.