Cost-saving ideas for companies: 15 ways to reduce costs in the workplace
May 22, 2023
September 27, 2024
30%. This is how much you can save by investing in the right technology for your workplace, and this is the percentage deskbird helps you save. Because “how and where can we lower our expenses?” is the question all organizations continuously ask themselves. It is the daily challenge of finance managers. But don’t worry; we’ve got you covered!
To keep your budget in order and detect cost-reduction opportunities, let’s take a look at the best cost-saving ideas for companies. But most importantly, let’s discover how modern technologies and ways of working offer new possibilities to minimize business expenses!
Our world evolves rapidly, and so do our work environments. While it requires organizations to review their working models, it also provides new scopes for improving their cost-reduction strategy. From using Artificial Intelligence tools to downsizing your office or assessing your financial expenditure, here are 15 efficient cost-saving initiatives to optimize your budget!
Classic but efficient ways to reduce costs for an organization
1. Keep your budget plan up-to-date
You need to know where your money is going and clearly understand where you could save costs. Keeping your budget plan up-to-date helps you notice your improvements and points out your weaknesses.
You can adjust it at any time, as soon as there is a change in your financial situation. For example, the global health crisis came from nowhere and put the world on hold; this event will most likely impact your budget plans!
2. Take a close look at your financial expenditures
Regularly check how much you spend on insurance, electricity, internet, maintenance, etc. Are your providers’ offers matching your current needs? Can’t you find better and cheaper solutions?
Also, review your subscriptions at least once a year and determine whether you still use this HR (Human Resources) software. Another way to decrease financial expenditures is to reduce service costs by prioritizing pay-as-you-go pricing models.
👋 Do you want to know how to optimize space and cut costs with a flexible office? Learn how you can save up to 30% with these cost-cutting ideas!
3. Set up a department budget system
Your IT employees don’t have the exact same needs as your sales team. Each branch of your organization has specific requirements. Considering this can allow you to cut the company’s costs significantly.
For example, some jobs can hardly be done at home, while others can be done remotely. Downsizing the office space for the team primarily working from home is a great cost-saving idea. Yet, you can’t do it for the departments that must come on-site almost daily.
So, divide your finance plan by department, learn what each team uses, needs, and expects, and create a budget strategy for each branch accordingly.
4. Review your business travel plan
Attending all business events and meetings in person represents a big piece of every organization’s budget when they require traveling. To reduce travel expenses, analyze if corporate events can be done online.
If not, determine if they can be done closer to your headquarters. For this, you can carpool or take the train instead of the plane (not only is it cheaper, but it’s also better for the planet! 🌍).
Cost-saving ideas for companies that promote a modern work environment
5. Switch to a hybrid work model
On top of fulfilling employees’ expectations, boosting productivity, and improving work-life balance, switching to a hybrid work model also enables organizations to minimize costs. When half of your workforce works from home, many of your company’s expenses decrease.
Direct consequences such as lower energy consumption or smaller office space usage decrease your spending. However, indirect positive effects of hybrid work, like greater employee satisfaction and lesser turnover, also reduce business costs.
⏩ Check the deskbird hybrid office calculator to discover how much you can save with your workplace!
6. Invest in equipment and technologies that match your company’s and workforce’s needs
Investing in online resources nobody uses or uses incorrectly wastes money. Moreover, when team members work with inappropriate tools, they become frustrated, stressed, and less productive, leading to unforeseen costs.
Instead of buying the same software as your competitor because it works great for them, invest in tools that make sense for your business and your employees. Not only do you avoid wasting and losing money, but you also prevent dissatisfaction and disengagement among your workforce.
7. Consider working with freelancers
Instead of hiring a new employee each time a more intense work phase comes along, consider collaborating with freelancers. In the short term, operational costs might increase, but motivating employees can yield benefits.
Quite often, independent workers are highly engaged and deliver very qualitative work, as they can choose their clients. If they accept the project, they like your products or services and want to help you grow. This is the perfect solution to save money while collaborating with highly skilled people for short projects.
Shifts to make in the physical office to efficiently save costs
8. Downsize your hybrid office
If you allow your staff to embrace flexible work, you can likely downsize your office space. Checking and examining your workplace analytics. This should give you a clear understanding of how your office space is used and where your workplace layout can be improved to minimize costs.
If you don’t already have a tool for this information, we highly recommend you look at the deskbird desk booking software. Not only does it help you manage your hybrid workspace efficiently, but it also provides you with crucial features such as office analytics.
9. Implement a BYOD policy
Do your team members have PCs in the office and work from their laptops at home? Implementing a BYOD (Bring Your Own Device) policy has become a common practice in the world of work.
It reduces the impact of technology hardware on the planet (fewer computers bought = fewer raw materials extracted), and it simultaneously decreases the company’s expenses. To promote equity and inclusion in the workplace, we recommend you contribute to purchasing your staff’s equipment according to their income.
10. Adopt more sustainable practices
Who said caring for the planet costs money? Some eco-friendly practices do, but others actually save money. For example, look at the 3 Rs method (Reduce, Reuse, Recycle). Instead of throwing away a laptop that is no longer working and buying a new one, try to get it fixed first. But there are plenty of examples like this one.
Opting for second-hand furniture is a green solution that helps you minimize expenses, too. Switching to low-consumption light bulbs and rethinking your hybrid office design for more natural lighting is also an option.
Controlling the use of AC in the summer and decreasing the indoor temperature in winter also contributes to lowering your carbon footprint while reducing business costs. The list of examples of sustainability in the office goes on.
🍃 We recommend you take a look at our 21 sustainability ideas for businesses and 17 easy monthly green challenges for the office for more insight!
11. Embrace modern workplace technology
Investing in modern workplace technology is also a way companies can save money.
For example, cloud-based systems cost less money and enable you to reduce your storage space. You can then convert this new room into a working, social, or wellness area instead of extending the size of your workspace. Yet, it can also be an opportunity to downsize your office in combination with the space you save, thanks to a good analysis of your hybrid office usage.
Transforming your headquarters into a smart building also contributes to lowering your expenses. Lighting sensors help reduce your electricity bills, for instance. Lastly, review your cyber risk management system. A poor data protection strategy can have a huge impact on your budget.
Practices that indirectly reduce business costs to implement in your cost reduction strategy
12. Automate repetitive tasks
Time is money. Instead of assigning your staff repetitive tasks and automate them instead. Implementing automated systems frees up time for employees to focus on more meaningful tasks and maximize their skills. Automating your processes also enables them to be more efficient. Keeping time on necessary steps boost employee morale and results in more productivity and engagement. Less frustration, fewer risks of employee burnout or quiet quitting, and less turnover.
13. Outsources noncritical tasks to AI to save time and reduce operational costs
The question of using AI in the workplace has been on everyone’s lips over the last few months. When used smartly, AI tools are great allies for businesses and workers. Like automation, they can significantly reduce operational costs and save time for team members to focus on more critical tasks.
Chatbots are the perfect example of an AI solution that works and benefits everyone. Today, you can also code or write a newsletter with artificial intelligence resources. Although it still requires human intervention before being used, it saves considerable time (and as we’ve just said, time is money!).
👋 Start a free trial of the deskbird app and give your employees more flexibility with workspace booking and week planning!
14. Offer skill development opportunities to all your staff
If you’re not currently under any financial strain, offering skill development opportunities to your team members is a long-term investment you should consider. Yes, it implies spending money you might not have planned to pay initially. But upskilling and reskilling your employees can create a boomerang effect that enables you to save costs in the long run. It has become a common practice to cut recruitment budgets and has been given the fancy name of quiet hiring.
When done correctly, this approach is a win-win for all. It answers Millennials’ and Gen Z’s demands for more chances to learn new abilities. At the same time, it helps businesses lower their expenses and fill skills gaps.
15. Invest in management tools
Efficient management is the core pillar of productivity which leads to saving costs, making more money, or both. You find management tools for every aspect of your business (project management software, hybrid workspace management platforms, HR management systems, etc.). Define your needs and invest in the resources that match them most. Using these tools helps you be more efficient and get a better insight into where you can cut costs thanks to relevant data.
After reading this article, we hope you’ve discovered multiple cost-saving ideas that could be implemented in your company! You can create a cost-reduction strategy that considers all aspects of your organization (your physical office, working model, digital workspace, etc.) according to your needs.
Are you wondering how to downsize your office? Have you switched to a hybrid work model but have not found a hybrid workplace management tool that matches your needs? The deskbird app is a tailored-made and user-friendly software. It provides a desk booking solution, a week planning feature, an office analytics section, and more.
Request a free demo to discover how deskbird works and how it can benefit your company and your employees!
Sources:
- 13 Simple & Effective Ways to Reduce Business Costs in 2023, connecteam;
- 15 Cost-Cutting Ideas & Spend Optimization Tips for Your SME, Fujifilm;
- 10 Innovative Cost Saving Ideas for Companies to Reduce Overhead & Lower Business Expenses in 2023, SnackNation.
