Employee Benefit News for School, City and County Employers

6 Cost-cutting Tips for Employers

Written by Mari Wagner | Mar 10, 2023 4:46:54 PM

1.5 minute read

Due to economic downturn and ongoing labor challenges, employers are searching for ways to save money. Being savvy can help employers identify areas to reduce expenses without compromising productivity or future growth.

6 Cost Cutting Tips

1. Strengthen Employee Retention

Employee turnover can be costly. Retention efforts can be prioritized by providing employees with learning and development opportunities, offering benefits employees want, and having flexible working arrangements.

 

2. Manage Health Care Costs

Employers can leverage their relationship with their insurance brokers to explore cost-saving solutions. Consider reevaluating your current plan options and helping employees choose more cost-effective solutions.

 

3. Invest in New Technology

Technology can allow organizations to improve or automate tasks. New technology like virtual recruiting and artificial intelligence may help decrease costs by increasing efficiency and streamlining operations.

 

4. Embracing Outsourcing

Outsourcing more time-consuming tasks would allow an organization to focus on tasks that have a direct impact on their bottom line and potential growth.

 

5. Adopt Flexible Work Arrangements

To lower overhead expenses, employers could consider offering flexible scheduling. Other employers may eliminate their physical offices to downsize their facilities to reduce monthly costs.

 

6. Review Expenses

Employers can look at their expenses regularly to help reduce and eliminate extra costs. Negotiate with providers, vendors, and suppliers to reduce fees, improve rates, defer payments, and receive additional services to help during difficult times.

 

Conclusion

Implementing these strategies can help employers ultimately increase their financial stability, optimize their resources, and position themselves for future growth. Download the bulletin for more details.