Time to get lean

thDBBQ78TJIn the world of business its very important to save money wherever possible without cutting down on quality.  For a small business the is crucial, which is made even more important if that small business is a service.  One that depend direct on customers retainer and satisfaction to make its money.  Gone are the days where an employer can offer its employee a vast range of perks.  Such as free coffee, soda, snacks, or maybe a free admission to an amusement park for the employees and their families.  Its nice to think back on the days of employee picnics, brunch, and dinners where the whole family is involved.  Presently there is barley enough extra dollars to give just the employees a nice gift or something during the holidays and for birthdays.

Previously, it seems almost an must for the employer to supple its employee with a cell phone, some kind of tablet, and depending on the industry a BlackBerry, and laptop.  With the company footing the bill.  The cost of everything is increasing and amount of money people are spending is still way less than say around this time twenty years ago.  Even with the economy on the comeback folks are hesitant and distrustful of the economy.  Being previously that at anytime unbeknownst to them it could plummet.  Leaving a person facing foreclosure, job loss, without the money to buy the necessity like food, medicine, or household products.

If a business provides its employees with just a smartphone it cost on average nine hundred dollars per employee each year.  For a small business that is a lot of money.  For a small business owner to have to provide cell phones and service for, just for educational purposes, six employees.  Each year that business will have to spend around five thousand and four hundred dollars.  In ten years, assuming that there is a hiring freeze, that will cost said business owner fifty-four thousand dollars!  That’s crazy!  That’s not including all other expenses derived from running a business.  Now take that same number and put it against one of these large corporations.  That may have an employee count for three hundred, that number per year is roughly two hundred and seventy thousand dollars! Over two million dollars in ten years.  Those numbers really start to add up.

There is always an employee or two that may have something to say about no longer being able to enjoy the perks of a company issued cell phone but this also opens the employee and employer for that matter for flexibility in the work place.  With the increasing use of the virtual employee, an employee that spends most of its week away from the actual office.  The brick and mortar, and just connects online and completes her assignments off campus.  This is not a problem.  It doesn’t matter the size of the business, if its a large company with hundreds of employees or a small mom and pop  with less than a half of dozen employees.

Many people conduct personal business while at work and work while at home. Over the years these boundaries have been blurred.  Which is great for a smoother transition of no longer having company phones, expecting employees to supply their own.  That’s not to say that it will be smooth sailings through and through.  Just that some people will not mind and some will.  Best advice is to explain reasoning behind it, that it is in an effort to keep the business afloat and making money.

Although office morale is important, overspending is not an option for small business owners to stay afloat and compete against larger more lucrative companies. Try looking for creative ways to cut down money and expenses in the work place.  Hopefully employees will be more happy with retaining a job then a smartphone or tablet.