Every business looks for ways to trim the budget and cut operating costs. However, it is important to consider the implications of each potential budget cut to avoid even worse financial problems as a result. For example, hiring one typist instead of two to handle the workload could lead to delayed work orders and priority conflicts. The following problems represent three major areas where cutbacks could lead to problems.
Reduced Safety Measures
While some safety precautions are legally required due to industry laws, others are more individualized. One example is safety training for employees, which is generally a good idea to help prevent accidents and injuries or to train staff members to treat them appropriately when they occur. Distributing a handbook or sending an all-company email outlining safety rules and procedures may seem to cover the bases in getting the word out, but nothing substitutes for live or video hands-on training. The company cost of taking a financial shortcut in this area may be revealed when someone gets hurt on the job or the company gets sued for inadequate safety provisions.
Paying for cheaper Internet service may seem like a good idea at first. But when online access slows down and employees have a hard time doing their jobs related to Internet work, hidden costs of a lower-grade service begin to emerge. High-speed Internet service helps to ensure that work proceeds at a productive pace. Employees will be better equipped to maintain regular speed to complete daily tasks on time, and this will sustain their momentum as well as help to ensure a positive outlook. Additionally, it can be a good idea to reevaluate your internet service every year. A more local company like TruVista may offer something that a larger company can’t, or a larger company might handle the high demands of your internet usage better than a small company.
Office Supply Shortage
While you might be able to make do with fewer ink cartridges and print forms on hand, you don’t want supplies to come up short when employees are on a deadline or a major project is looming. Take careful inventory over the past few years and compare stock orders with the corresponding workload. Then look at projections of incoming work over the next six to twelve months for a clearer idea of what to spend on office supplies, rather than submitting the same routine office supply order periodically, whether needed or not.
A careful comparison of present employee needs vs. future prospective needs can help you make important decisions about budget cuts. While some aspects of the business may need to be reduced, avoid cutting critical elements that may cause worse problems.