How to cut costs?

Sommaire:

1. Reduce costs

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2. Opportunities to do so
2.1 Strengthen corporate agility
2.2 Increase skills visibility
2.2.1 externally  
2.2.2 internally
2.3 Develop new skills
2.4 Optimizing and engaging remote working

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1. Reduce costs

"There can't be a crisis next week: my diary is already full," says Xavier Emmanuelli.

Despite the advent of new technologies, the number of crises continues to grow. What's more, crises are multiplying in many sectors. Today, it's the corporate sector that's facing a number of problems.

Not only because of TurnOver, which is growing at an extraordinary rate, but also for financial reasons. The difficult times in which we live (pandemics and wars) are the cause of major inflation. Indeed, it's becoming increasingly difficult for companies to support themselves without outside help. For example, during the Covid survey, "41% of VSEs forecast a marked decline of more than 30%" in their annual sales in 2020.  There are a number of things that can be done to reduce the various costs a company may face.

These solutions are very important, as they enable the company to concentrate on more pragmatic tasks such as onboarding employees or training talent. Nevertheless, there are a number of ways in which these expenses can easily be circumvented.

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‍2. Opportunities to do so

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2.1 Enhancing the company's agility

Doing this will enable us to reduce costs considerably, since each employee will now have a much more flexible role. Indeed, in a company with a "matrix" mode of operation, employees are used to reporting to managers and being part of projects incorporated into different divisions. This reinforces the different flows of ideas within the company, while embedding employees in the company's integral visions and values.

2.2 Increasing the visibility of skills

2.2.1 externally

By increasing the visibility of skills, talents will not only feel engaged but will also feel that they are being supported in their professional careers. Indeed, offering career paths and helping talents prepare for them through various training courses will create a sense of belonging. With externally visible skills and support in the professional world, the Talent will feel grateful, and so work harder, making the investment made in training pay off. What's more, having a competent team strengthens the company's brand image. The company will therefore be linked to very positive terms such as inclusiveness or equality, values to which the young people of Generation Z are very sensitive. This will reduce HR expenditure in terms of recruitment, since the retention of young people will be high, and they will come on their own. This quest towards CSR is one of the priorities for companies, if they want to be attractive to young talent, i.e. Generation Z.Read this article on Generation Z, and the approach companies need to take in this regard.

2.2.2 internally

By highlighting the different skills of each Talent, corporate HR can analyze them to determine where their talents would be optimized within the company. Indeed, if a manager launches a project in a certain division, he won't be aware of any in-house talent that would perfectly match his expectations.

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Photo of the "Projet à Staffer" module on the PALM platform:

This optimizes the time of HR and managers, while avoiding numerous expenses:

- External recruitment due to a lack of knowledge of in-house talent

- Correction of a faulty job by an unqualified employee

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2.3 Developing new skills

Helping each Talent to develop their skills will enable the company to have more support when a problem arises. As a result, labor costs will fall. What's more, as talent develops, so will its commitment. By feeling included and supported in their career path, they will work more efficiently, and by developing their skills, you will increase your talent retention, avoiding all the recruitment costs. This is of economic importance, since the average recruitment of an employee costs around 4,000 euros.

2.4 Optimizing and engaging remote working

Working remotely is a mode of operation with which we are becoming increasingly familiar. Indeed, with the pandemic, working online has become a habit. Doing so is advantageous for the company, since the employee avoids commuting times, travel expenses, and above all those that accumulate when renting (or owning) a workspace: electricity, top, rent, supplies, food.