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Published 28 February 2023 | 3 min read
In today's fast-paced business world, small-to-medium businesses are under constant pressure to improve their bottom line while remaining competitive. One of the key ways to achieve this is by reducing costs and saving time. However, traditional cost-cutting measures such as staff reductions or process automation can often lead to negative impacts on employee morale and job satisfaction. This can, in turn, lead to reduced productivity and increased employee turnover, ultimately costing the company more in the long run.
To reduce costs and save time, many small businesses turn to traditional solutions such as automation, outsourcing, or staff reductions. While these solutions may provide short-term cost savings, they often come at the expense of employee morale and job satisfaction. This can lead to a decrease in productivity and increased employee turnover, ultimately costing the company more in the long run.
EQ Consultants believe that creating people-oriented efficiencies in the workplace is the key to reducing costs and saving time without negatively impacting employee morale and job satisfaction. Here are the five strategies we recommend:
1. Smudge encouraging open communication
Small businesses can encourage open communication by regularly meeting with employees to discuss progress, challenges, and ideas. This can help employees feel more connected to their managers and peers, leading to improved trust and better collaboration. For example, Christchurch-based software company, Smudge Apps, holds weekly "Standup" meetings where employees share their progress and ideas with each other.
2. The Social Club fostering a collaborative environment
Small businesses can break down silos between departments and encourage collaboration between employees to reduce duplication of effort and improve the efficiency of projects. This can save time and reduce costs by ensuring that the right people are working on the right tasks. For example, Auckland-based marketing agency, The Social Club, has a "no-ego" culture that encourages collaboration and cross-departmental work.
3. Dubzz investing in employee development
Small businesses can invest in training and development programs to improve the skills and knowledge of their workforce. This can lead to a more productive and engaged workforce, ultimately reducing costs in the long run by improving employee retention and reducing recruitment and training costs. For example, Wellington-based digital marketing agency, Dubzz, offers regular training and development sessions for its employees.
4. SLI Systems using technology to streamline processes
Small businesses can implement technology solutions such as automation or chatbots to streamline routine tasks and free up employees to focus on more complex tasks. This can save time and reduce costs while also improving employee job satisfaction by reducing their workload. For example, Hamilton-based software company, SLI Systems, uses chatbots to handle customer service inquiries, freeing up employees to focus on more complex tasks.
5. Flight Digital encouraging a healthy work-life balance
Small businesses can promote a healthy work-life balance for employees by offering flexible working arrangements and wellness programs. This can improve employee well-being and job satisfaction, leading to improved productivity and reduced costs in the long run. For example, Wellington-based digital marketing agency, Flight Digital, offers flexible working arrangements and wellness programs such as weekly yoga classes for its employees.
In conclusion, creating people-oriented efficiencies in the workplace can help reduce costs, save time, and improve employee engagement and job satisfaction. By encouraging open communication, fostering a collaborative environment, investing in employee development, using technology to streamline processes, and encouraging a healthy work-life balance, SMEs in New Zealand can create a work culture that benefits everyone. By implementing these strategies, you can improve productivity, reduce costs, and create a more engaged and satisfied workforce.