Human Capital Consulting - People Cost Reduction
The economy’s rapid contraction is forcing organisations to shift direction and look harder at costs. In some cases people can account for up to 90% of operating cost. When facing challenging market conditions, many organisations take a reactive approach to headcount and people cost reduction; cutting core competencies and implementing indiscriminate, tactical cost-cutting measures. This risks the wrong outcomes for the organisation – creating skills and knowledge gaps, employee dissatisfaction, critical talent loss, confused decision-making and reputational damage.
Often companies make the mistake of focusing too inwardly when undertaking these cost measures and risk compromising business as usual performance. It is essential therefore to focus on your external market, your customers and drive performance when making cost savings.
The first step to solving these challenges it to understand:
- What are the opportunities to reduce your people cost base?
- How can you best manage people through a period of downsizing and uncertainty?
- How do you deliver cost reduction in a way that maintains performance and realises people benefits effectively?
Our structured approach to reducing people costs enables you to identify both tactical and strategic initiatives to be delivered both rapidly and over the longer term.
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