What’s worse for businesses than being neck-deep in debt? A disgruntled, dissatisfied, and demotivated workforce!
Large-scale businesses often tend to forget or neglect the contribution of physical and intellectual labor that goes into daily operations. These tasks are solely handled by the employees who can’t be replaced with machines or software.
During a crisis, it’s common for companies to lay off their employees to cut costs. While it may help achieve the financial goal, it’ll be a blow to your company’s foundation: the labor force.
Immediate and unprecedented laying off of workers lowers the company’s retention rate and plagues their reputation in the job market. Even if you were to recover from the financial difficulties, you’ll lose your core workforce and not have enough human resources to run the business.
It’s imperative to look at alternatives to cost-cutting other than shrinking the workforce. We’re always ready to extend bridge financing to help you achieve your goals!
Temporary Pay Cuts at a Progressive Rate
Even though this suggestion is often not well-received, it’s still a milder course of action. A progressive percentage reduction in pay-scales across the board will help the company recover from the financial crisis. The term progressive is important because taking off 5% from a low-income worker will have more severe consequences on their standard of living than keeping 5% from a manager’s pay.
It’s important to take into account the difference in salary brackets and assigning equitable reduction of pay for all employees. The workforce should be informed of this beforehand and the terms of this arrangement communicated to them. Indefinite pay cuts are a source of great distress and anxiety; a temporal arrangement is more feasible.
Smart Consumption of Utilities
Utilities, such as electricity and gas, make up a large part of monthly expenses. Corporate offices that are built on an outdated interior plan may not have energy-efficient appliances that save bills. Investing in smart HVAC systems, such as air conditioners, furnaces, and heaters will ensure that you’re able to prevent waste of energy and control a spike in bills.
Companies that have the budget can also invest in eco-friendly sources of power, such as solar energy. Installing solar panels can generate electricity independently and bring your bills down significantly.
Let Out The Office Space
Another fixed cost is the price you pay to own or rent a place for your office. If you own the building or office floor, you can generate a source of income by letting out space for commercial tenants. There are small- and medium-scale businesses that need a place to set up until they collect funds to invest in real estate. You can assist them by rearranging your office hours to allow the other party to avail of the space and pay a fixed rent in return. This will not only cover the cost of utilities but also share in additional financial costs.
Your core force is worth more than a business deal; if they’ve helped your business stay afloat during the past months, they deserve to be retained. There will always be alternatives to cutting costs to meet your targets.
You can apply for bridge loans in Colorado Springs, CO, or anywhere in the nation because Global Capital Partners Fund—a private lending institution—can help you more conveniently and affordably. They can process hard money loans quickly, and the amount will be in your account in no time. Reach out to them at +1-800-514-7350.