How motivating staff can help SMEs save on business costs

Business owners and managers can play a key role in driving down operational costs within a firm, provided they adopt the right strategies.


By motivating the workforce and by encouraging frugal thinking, it’s possible to reduce outlays and cut any financial pressures that a business may be facing.


Not only does this go some way to eradicating the threat of insolvency but it can also help to create a better working environment for all.


It’s important that bosses lead by example in this regard, as staff will often look to them for inspiration and guidance on how to act.


Encouraging recycling or the switching off of lights for instance is a lot easier for someone to promote if they already do it themselves.


Such actions can then be written into the culture of the company, enhancing the likelihood that savings can be made on a firm’s energy and running costs.


Changing attitudes towards business finance


Attitudes towards finance are also key, and staff are far more likely to consider costs if they are expected to treat the company’s money as their own.


Encouraging this sort of approach should mean that staff always look to negotiate the best deals – these savings can quickly add up, especially at companies who operate on tight budgets.


Transferring key business procedures and documents to an online format can also reduce costs as printing requirements are cut.


Printing can be a major outlay for businesses and can be considered an unnecessary expense, specifically in instances where documents are not needed in a physical format.


Online files can be viewed and shared very quickly too, which boosts productivity and efficiency in the workplace.


Providing flexible working to increase productivity


Technology also enables working from many different locations which can further enhance levels of output within a firm.


Productivity and business performance are closely linked, so motivating staff can provide a financial shot in the arm for a company too.


Failing to do this can result in lower sales, slower working practices and could even cause a company to lose money – increasing the likelihood of requiring business rescue or other financial procedures.


Encouraging thrifty attitudes in the workplace could bring many benefits, and it starts with ensuring that staff are motivated to act with the best interests of their employer at heart.


By Phil Smith


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