Innovative Cost Savings Saves Jobs
April 17th, 2009
A survey of 92 of NZ’s top businesses by remuneration specialists, dsd Consulting, has found businesses are seeking innovative ways to manage their costs rather than cut jobs. Dsd says it has been surprised by the number of organisations looking internally and actively engaging with their staff in finding solutions, and really promoting the message “we are all in this together.”
“These organisations are asking for ideas in a range of ways including staff focus groups and open forums. One company reported cost savings of $500,000 as a direct result of staff input and feedback. Another innovative organisation has a hot-line to the CEO which is open to all staff.”
So where are the savings going to be made?
1. The immediate reduction in the use of temporary and contract staff to safeguard permanent jobs.
2. A freeze on travel with many companies encouraging the use of in-house video conferencing facilities in lieu of travel.
3. Encouraging those with large outstanding annual leave balances to work shorter weeks until those balances are reduced.
4. Revisiting the annual salary review. Last November businesses were looking at 4% rises for 2009, They’ve now slashed this to 2.5%-3% – the lowest in well over a decade.
None of the companies surveyed is planning to cut staff wages, and only 15% are considering asking all staff to work shorter hours.
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