This post is contributed by Jason Dirkham.
Keeping that entrepreneurial spirit alive while balancing the books is no easy feat. And if you’re like most small business owners, employee expenses are probably one of your biggest challenges. We’re talking coffee runs, birthday cakes, employee perks, and everything in between. Saving money is about more than the employees, too, you have to look at where you can save across the board, too. From using a Shopify Plus agency and outsourcing to ensuring that you help your employees to better manage their expenses, you can cut down on expenses and help your business to move forward. But before you start wondering whether hiring robots is the way to go, take a deep breath and relax because below, you will find some of the best tips to help you cut down a little (or a lot) on those employee expenses that do mount up, and all without being a party pooper of a boss!
Telecommuting for the Win
Let’s start with a big one. Ever considered letting your employees work from home, even if it’s just part-time? Not only does it save on utilities and office supplies, but it can also lead to increased productivity. Not only that, but with less need for office space, you can consider downsizing, and save on rent. Even better, most employees prefer to work from home, at least some of the time, so it won’t feel like you’re being a bad boss if you decide to embrace the remote working revolution.
Bulk Buying and Sharing Resources
What’s that old saying? Oh yes, “Buy in bulk and save a buck.” (Okay, I may have made that up, but it sounds right, doesn’t it?) From office supplies to those delicious Keurig pods, bulk buying can save you a fortune in the long run, and of course, it also cuts down on admin and time spent doing the actual buying too. When you have loads of what you need in storage, business life really is much easier to deal with.
DIY Professional Development
Instead of shelling out big bucks on fancy courses, why not try in-house training? With webinars and online platforms galore, encourage your employees to learn and grow on a budget. Bonus: Set up a fun, monthly “Lunch and Learn” where employees can share what they’ve learned.
Bring in the Interns
Teaming up with local universities to offer internships can be a real game-changer. Students get the experience, and you get some extra hands on deck without the full expense of hiring an additional employee. It’s a win-win!
Encourage Carpooling or Public Transport
Got an office in the city? Encourage employees to use public transport or carpool. It’s eco-friendly and can save money on both fuel and parking. Heck, if you’re feeling generous, you can even subsidize their transit passes as a perk! Obviously, this only works out if you pay for travel expenses as it is.
Cut Back on Business Travel
Is that out-of-town conference a must? With tech like Zoom, Skype, and Teams, many face-to-face meetings can be swapped for virtual ones. Save on flights, accommodation, and all the other extras that come with travel.
If your employees do need to travel a lot, perhaps because you operate trucks, or the sales team needs to actually meet up with clients in person a lot, then you should definitely consider the benefits of fleet cards. If you do not know what they are, you can read about them in more detail at – What Is A Fleet Credit Card? | A Guide For Fleet Owners – however, they are basically credit cards for fuel that make it easier for you to pay for and track fuel expenses, so you can work out how to make savings, and often you are also able to make savings when you pay with one because you are buying in bulk.
Rethink Those Perks
While a swanky coffee machine or daily doughnuts sound enticing, are they necessary? Re-evaluate your workplace perks and consider more cost-effective alternatives that your employees would still love. (Pssst, some surveys show employees value flexi-hours over free food.)
Of course, you need to weigh this one up carefully because, if removing the free coffee means that your employees are less productive, it could end up costing you more in the long run, for example. Sometimes, you really do need to spend a little more to make a little more, so take perks on a case-by-case basis and monitor for any ill effects of removing them to find that sweet spot.
Go Paperless
In the digital age, paper is kinda, sorta… old school. Not only is going paperless eco-friendly, but it also cuts costs on paper, ink, filing cabinets, and storage space that your employees may be using because it’s simpler or because it is what they have always done. Digital files are easier to manage, and you won’t have that pesky paper cut risk!
Use Freelancers for Special Projects
Instead of hiring a full-time employee for a short-term need, consider tapping into the freelancer pool. Websites like Upwork or Fiverr can connect you with professionals from around the world who can get the job done without the ongoing commitment, which means you do not have to worry about paying a full-time salary or contractor rates, and you do not have to pay for additional perks and taxes, and…well you know how endless sit is, for an additional employee whos expertise you may not actually need that much of the time.
Health and Wellness Programs
Hold up, isn’t this an added expense? Initially, maybe. But by promoting a healthier lifestyle, you can save big on sick days, health insurance, and employee turnover in the long run.
Cross-Train Your Team
Ever heard the saying, “Jack of all trades, master of none?” Well, in the small business world, a Jack or Jill who knows a bit of everything can save you from hiring extra hands. Cross-training helps ensure you always have someone on deck who knows how to handle the task at hand.
Whew! That was quite the list, wasn’t it? With just a pinch of creativity and a sprinkle of resourcefulness, trimming down those employee expenses doesn’t have to mean trimming down on quality or morale. You’ve got this, so go forth and start saving!
