Financial crises very often invite companies to reduce their spending. And the trauma caused by Covid-19 is no exclusion from the rule. Some companies, therefore, had to reconsider their workforce, reduce liabilities, and/or renegotiate their deals to optimize the company cost.
With innovation, the worker no longer appears in the office, or significantly less than before! In any event, offices, therefore, have a big part to perform in optimizing costs.
So how do you deal with this? Will working from home last or should we expect a regular return to the office?
What is Cost Reduction?
Following the imperative of the trauma is a need to improve competitiveness. And this goes through modifications in assessments. And this is the place where cost optimization kicks in. The term is pretty obvious, the company attempts to get rid of any movement of money that does not make a return on expenses. A quest for financial waste, in a way.
When it is hard to predict the growth of turnover, as in times of disaster, the issue of investment control comes up fairly swiftly on the table. Because it is an example of the only tools on which we can still act. Various cost reduction solutions then exist. They mainly concern expense items linked to human resources, liability restructuring, or office costs! The solution is to restrain costs as much as conceivable until the business has more clarity into the future. And in actual terms, what steps to take when deciding on cost reduction?
How to reduce the costs of a company?
If the tension points to areas of costs to be reduced, be cautious! Because the most prominent savings could eventually turn into deadweight losses for the organization. Here are the various sections of cost optimization, excluding office investments:
- Staff Survey. And yes certainly one of the most radical solutions outlasts is the departure of employees. The jeopardy is to lose straightforward know-how. So beware of bad expectations and too hasty decision-making.
- The Deduction of Purchases. Disasters can focus on failed supplier deals. It is likewise a good opportunity to look for new sources of supply.
- Human Resources. Resolutions are less brutal than the departure of the workforce endurance. You can reduce salary, change health coverage or call on subcontractors. Biased unemployment is already one of these resolutions, adding somewhat to the reduction of costs.
- Suspension of deadlines. In this unusual context of disasters, you can demand the suspension of at least part of the number of your social participation. If you are having trouble resolving your tax deadlines, you can also request a tax rebate or a delay in payment.
- The Standard of Work. Less factually, analyzing your work situation could have positive results on the cost of labor and therefore generate more productivity accumulations.
In any case, one should be cautious of hasty decisiveness in the face of difficulties.
Offices and Cost Optimization
In general, reducing office rent is a cost optimization solution or joining a coworking space like this. But the Covid crisis has reinforced this with the new WorkFromHome variable. Offices got emptied and areas remain abandoned. So many reductions charges can be done within the office variable.
- Joining A Coworking Space. Now is the time to renegotiate with your landlord at the end of your commercial lease, but we all know that not even a single landlord is going to do that for you. However, Coworking spaces hit things differently with already a cost-reduced managed offices and all the amenities they provide are just too good to be true.
- Reduce service distribution costs. Are you wasting too much or carelessly on cleaning, coffee, or support? It’s a chance to examine it all together!
- 0 costs, 0 offices. And naturally, why not try the 100% remote? Terrible for the corporate growth and the emulation of teamwork, but maybe a part for the future and unquestionably reduce expenses!
Furthermore, that’s good, it is our expertise!. So please do not delay to contact our company, which will be happy to assist you in your quest to cost optimization or finding an already cost-optimized workspace.