Every day employees make decisions that can save your company money. They understand the intricacies of the company and are often aware of cost saving opportunities that management does not see. Employees just need a way and the motivation to implement their ideas.
Successful employee driven cost-savings initiatives empower employees to think outside of the box on how to save money. Here are some guidelines to create a thriving employee driven cost-savings program.
1. Set a savings goal that the company will achieve. For example, Comm-Works, a provider of technology and infrastructure services, launched a cost-savings program with the goal of saving the company $1M in one year. By setting an overall savings goal you engage employees in cost-savings effort. Each employee knows that they can make a difference to the company’s bottom line.
2. Include everyone. All employees can contribute to the cost-savings effort – from the receptionist who can save on courier costs to the manger who can negotiate contract fees.
3. Ask employees to look at their own departments and find ways to eliminate waste and improve efficiency. Chances are, what one department can eliminate or save on, another can too.
4. Make it easy for employees to submit their savings and don’t set a minimum savings amount. A minimum saving amount will deter employees from participating in the program and make employee buy-in harder to achieve. Every saving counts!
5. Most importantly, reward and recognize them for submitting their ideas and implementing cost-saving measures. It will motivate them to seek out additional opportunities to save.
