The economic impact from the coronavirus pandemic is expected to hit almost all business. Most companies certainly reconsider their investment plan. We would like to guide you “3 major organization costs to be reduced with Teachme Biz against the disruption of COVID-19”
1. Operating Cost
Operating cost or business expense is the cost of resources used by an organization to keep business running. Although this amount of money is essential for day-by-day administration, there are tons of “waste” or “hidden cost” that trigger your operation model. To start a cost reduction exercise, your team needs to strictly review working procedures in each department and determine whether there is “waste” or “hidden cost” in any process.
We found that there are 3 common situations in organizations that have “waste” or “hidden cost” in the working process.
1. The process is unclear. → Employees often practise and learn by themselves.
2. No “waste” is detected in the work process. → Low efficiency
3. Too busy to check working procedures → Uncertainty at work
Here we have 3 solutions for you to tackle with the above situations.
1. Set a clear working procedure → working smoothly
2. Create an appropriate step practice → reducing time and cost
3. Forward the work process to the right person → no more hesitation on task
When the work process is clearly defined, there is no “waste” or “hidden cost”. This will massively cut the cost and lead to more efficiency in the workforce.
2. Staff costs
Even those who are not in the business community can notice how the economic downturn is causing the unemployment rate increases. Therefore, hiring cost is one of the first things to be concerned about by the management team.
“Nobody wants to fire a bunch of people.” but we cannot ignore that the vast majority of organizations are looking to maintain sales while cutting staff costs in order to survive from the COVID-19 pandemic. One of the trend solutions is to stop hiring but raising more skill in existing employees. This means that current staff will be required to take more responsibilities where reskilling and upskilling become an important plan to maintain productivity.
The most common things about managing people in general organizations are
1. Amount of work = Number of staffs (hard to balance)
2. Increase the number of staffs during busy season
3. Hire more staffs to take charge when someone resigns
Teachme Biz offers 3 ways to manage human resources flexibly and effectively. Get ready to support all situations.
1. Managing staff flexibly according to work proportion.
2. Increasing work efficiency and balancing the number of employees.
3. Linking each department’s common skills in order to prevents aftereffects of resignation.
In order to manage the labour force to support all business, employees are required to have various skills. It is not an easy task but the secret tip to make it successful is to give everyone access to the know-how or work process of each job thoroughly.
3. Staff training cost
Even though new job hiring is seized, the company is still operating business with a tight budget in an effort to maximize the company profit. Of course, with the limited use of human resources, they must be sure that each employee is capable of wide support. Otherwise there will be a reverse effect on results of operation. Therefore, to strengthen employee skills is a must. When training becomes necessary in the current economic era, the following costs are expected to come up.
– Costs of travelling and accommodation for training.
– Personnel expenses and time of both trainers and trainees.
– Preparation of the training may disrupt other operations. Other operations might be postponed.
All above costs appear when the organisation intends to cut down the cost. However, if the training process is not implemented properly, it will result in huge expenses. This means not only the cost gets higher but also many problems occur in the management. So here is the ideal way you should consider.
– Cut the cost of travelling and accomodation.
– Reduce training cost and time of both trainers and trainees.
– Shorten the training plan and schedule.
Everyone notices that after COVID-19 the economy may get worse. Tightening organization belts with cost reduction probably be the first concern for countless purposes. Even if we only have talked about cost management in this article, we believe that “Spending no money” is not the right answer for maintaining a business, but rather “Using money effectively” could allow the business to survive.
Teachme Biz - Visual SOP Management Platform that simplifies paper-based manuals, Work Instruction, Workflow or SOP into images and videos in step by step approach (Visual-based). You can create, edit and manage working procedure by all devices including mobile phone, tablet and PC. No more frustrating on unclear working instructions in your team. Staff-friendly manuals is far more effective and helps the user actually achieve a task.
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