Cost optimization
In conditions of the coronavirus pandemic, many organizations are not experiencing the best period. They have reduced profits and suffer considerable losses. To save the business, enterprises have to resort to cost optimization.
In addition, to reduce the spread of coronavirus infection, enterprises had to switch to remote work. In this article, we will consider methods for optimizing costs when switching to remote work and talk about cost items that can be reduced.
Reduce rental costs
If all employees are on remote work, then the office is empty. In this case, during a pandemic, you can talk with the landlord about reducing rents.
Companies may try to negotiate a rent reduction with the landlord and thereby optimize costs. As a rule, landlords go to meet companies, because during the coronavirus period it will be difficult to find another tenant.
If the landlord does not go to the make advances and refuses to reduce the rent, and the enterprise has no other way to optimize costs, then the company may refuse this office space, and after removing restrictive measures and improving the financial situation, find another office.
The decrease in expenses on financial obligations
When transiting to remote work in connection with the coronavirus pandemic, many organizations simply need to optimize costs in the area of financial obligations. You can do this in the following ways:
1. Restructuring or refinancing of a loan.
2. Agree with counterparties on a deferred payment and possible conditions for its receipt.
Reduce staff costs
When transiting to remote work, you can optimize staff costs by the following actions:
• reduction in premiums;
• part-time;
• staff reduction;
• sending employees on vacation;
• partial transition to outsourcing;
• implementation of software to maintain employee productivity.
To effectively optimize costs, reducing staff costs during the transition to remote work is the main one. During a pandemic, many specialists are willing to work for less. Some of them have lost their jobs and therefore will agree to your terms.
Also, employees can be transferred part-time. As you know, not all employees work productively during all 8 hours of a working day. Thus, the transition to part-time work will help optimize costs and keep employee productivity unchanged.
Partial transition to outsourcing during the period of remote work will also help the company optimize costs. For example, in many enterprises, the practice is widespread when outsourcing leads to part of the accounting department or all of it. Outsourcing services are provided at a much lower cost than paying a salary to a staff accountant.
Likely, workers will not like the measures introduced. The main thing is to explain to them that these methods of cost optimization were introduced temporarily and after improving the financial situation in the company, everything will return to its original place.
Special attention should be paid to such a method of cost optimization as the introduction of software to maintain employee productivity.
Teamon.live is a service for monitoring the computer screen during business hours at employees. Remote monitoring of computers online will help to see what employees are busy with, what programs and sites they open, and how much they are in the break.
As you know, many employees spend about 30% of the working day precisely on their personal affairs, which reduces their effectiveness and reduces the company's profit. By introducing Teamon.live software into the company’s work, you can optimize costs by increasing employee productivity.
Turning to the calculator on the Teamon.live website, we can independently calculate how much the costs are optimized when using this service.
So, we see that under the conditions that the company employs 20 specialists, with an average salary of 14,500 dollars, with the implementation of Teamon.live, the company will be able to save about 86,800 dollars a month and about 1,042,400 dollars a year.
The calculator clearly shows that the high productivity of employees while optimizing costs plays a huge role. Since maintaining high employee performance is not so easy, Teamon.live software is an excellent solution.