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:
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.