Cutting Costs without Cutting Labor

by Nathaniel Davis

Eliminating jobs does not result in immediate cost-savings. You have to consider severance packages that have to be financed as well as unemployment benefits to satisfy. The morale of the employees left behind always suffers.

There are strategies that can save money immediately, keep unemployment insurance rates down, and even maintain or improve employee morale while saving jobs. You should always consider alternatives before implementing involuntary reduction of staff. Below I have listed a few.

Temporary Staffing: Temporary staffing is not a part of the human resource budget that is reserved for regular employees. You can save many dollars here due to your organization not having to pay unemployment benefits if this staff is reduced. 

Part-time Employees: Sometimes you will have part-time employees scheduled to work 25 hours per week but are working upwards of 40 hours per week. Take a look at actual hours worked versus just full time equivalents. Look at the actual dollars and hours versus just focusing on head counts.

Job-Sharing: Allowing two people to work part-time hours for one full-time position allows for seamless coverage of the position. The client and the organization work with the team as if they were one person. 2 people getting the job done and the organization benefits by enjoying 2 heads instead of one.

Telecommuting Increase: This doesn’t directly affect labor costs, but it can reduce costs in the amount of office space utilized as well as office equipment. You can take advantage of allowing multiple employees to use one office on specific days when they are not working from home.

Organizations need to be flexible and look toward long-term cost cutting measures. Lowering employee morale and gutting the talent pool can negatively alter the organization over the course of years. Not focusing on just cutting labor can find the organization benefitting more in not only the short-term but looking forward into the future.

How Companies Can Cut Costs Without Cutting Jobs

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The Importance of Financial Responsibility

By Molly Wider

It is well known that when people fall into debt, lose their job, or experience financial difficulties for any reason, emotional trouble follows financial trouble with the same certainty sunset follows sunrise. Relationships are strained, bankruptcies are filed and dreams are dashed. For a period at least, the feeling of failure burns not only one's credit, but one's self-esteem - deeply.

Recovery is consequently something one must initiate as soon as possible, both financially and psychologically. Although it may take time and be painful, this process can also be an eye-opener, a hard lesson one can use to build a more solid and safe future based on financial responsibility.

Nothing long-lasting, in fact, is built on the spur of the moment, but it is the result of hard work, dedication, and resilience. The widespread belief that "having a lot of money" is what makes a person's future safe does not, in fact, hold true in reality.

Big lottery winnings, for example, can be just as disastrous for a person as falling into debt. This is quite surprising to many, but lotteries' sudden "millionaires" end up filing for bankruptcy and divorce, have their homes foreclosed and their dreams and families shattered with alarming frequency.

Reading some of these life stories, although saddening, can be indirectly soothing since it debunks the myth: "if only I had more money".

What makes a person's future safe is not the amount of money in itself, rather making the concept of financial responsibility an integral part of life: the skills, endurance, and willingness to manage one's finances wisely.

Once that is accomplished, money becomes truly effective and so does borrowing. This is why banks and financial institutions rely on your credit rating: they use your credit score to determine if you have achieved a satisfactory level of financial responsibility. In the end, that is their true collateral.

But how can one get there after having experienced serious financial trouble? If your credit is not satisfactory, sometimes, this means that even if you have collateral you may be denied credit, or have to pay very high interests for it.

Fortunately, there are other options to get you back on the saddle when you're ready to start your path to financial recovery. As soon as you have acquired an inner understanding of how finances should be run, one of these options is to rebuild your credit through a secured loan such as a car title loan. These loans are approved based on the value of your car are truck and can be obtained regardless of your credit rating. Reputable financial organizations that offer these services are ready to give you another chance at building a truly safe financial future.