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Cost Saving in the Workplace: We’re Still Paying for That?

Cost Saving In The Workplace

Yes, you’re still paying for that. Cost saving in the workplace is perpetual. The bigger the roster, the bigger the challenge. It is not a matter of irresponsibility as much as communication.

Cost saving (and cutting) is reducing the price of operating your business. Savings include everything from leaving the lights on to users for your AWS account. As world economies are increasingly unstable, cost-saving efforts are becoming standard.

From IT to ITAM

Subsequently – according to the Flexera™ “State of ITAM Report” from October – 43 percent of ITAM (IT Asset Manager) teams now report directly to the CTO or CIO.

Looking further, Forbes published “15 Things Small Businesses Often Waste Money On.” The top two incorporate trying to look ‘big.’ Hiring unnecessary assistants and leasing office space to appear big also showcase excessive spending.

Three through six on the list are the most palpable. Billing, software, and app fees get out of hand quickly. Additionally, staff turnovers compound the problem. Current team members may not even realize the company subscribes to services no one uses.

Positive Culture Breeds Positive Results

Positive Culture Breeds Positive Results

“Hire people you think will behave like an entrepreneur,” advises LMS System Administrator Daniel Ramdin. He and his team expand their roles to incorporate spending as part of administering technology. “We don’t like to just go in and upset the flow. We spend money where it makes sense.”

Communication between departments makes a difference. For instance, a department needs to increase its content management system to a higher tier. Advanced notice to the ITAM will better accommodate the upgrade, the users, and the cost. By contrast, an entirely different option may make better sense. 

Discovering areas of overspending or tactics to cut costs takes time. Laying blame is needless as different teams require contrasting tools and subscriptions, which others may need to be aware of. Communication is essential, and responsible teammates audit their expenditures.

Cost Control in the Workplace

Not So Fast

Conversely, some budget cuts can be detrimental. Jackie Wiles of tech research firm Gartner explains in “7 Cost-Reduction Mistakes to Avoid.”

“Only 11 percent of organizations can sustain cost cuts over a three-year period. This is because most cost-cutting strategies are short-term and fail to preserve the behavioral change required for smart spending decisions in the future.”

Randeep Rathindran, vice president of research at Gartner, advises team members to be frugal.

“Many more CFOs will start to look for cost reductions if high inflation persists or if there is a risk that higher interest rates will weaken the demand side of the economy,” he says. “Executives should scope now where to secure cost reductions while avoiding seven common mistakes that make it difficult – and potentially impossible – to pursue growth ambitions in the longer term.”

Cost Control in the Workplace

Cost Saving in the Workplace: The Usual Suspects

Other business sources, including Inc., Forbes, GWA, and Indeed, name common areas in which to save. These include Internet and telecom, data storage, office expenses, food, and third-party recruiters.

Another common theme is transparency, self-auditing, and team members who fit the culture. In conclusion, Daniel Ramdin’s earlier statement encapsulates their point: “Hire people you think will behave like an entrepreneur.”