With the rise of COVID-19, the past six months have taken a financial toll on many businesses around the world. Their main focus now, during these unpredictable times, is on how to stay afloat until the return to the new normality.
There are various expenses that your company should take a look at and consider temporarily reducing in order to remove some of the financial burden throughout this period.
This might be the most apparent option as most of your workforce is probably working at home these days. In fact, some companies have announced that they will keep their employees at home until the summer of 2021.
Whether your office is currently empty or only partly occupied, it might be time to think of alternatives for the near future.
If you don’t want to end your lease completely, another possibility is to sublet your office space. Although usually prohibited in lease agreements, given the circumstances, many landlords have become flexible on this issue (due in part to the fact that they know the company might break their contract otherwise).
If your company has successfully terminated their lease agreement or managed to sublet the property but still wants to give employees the option to work in a work environment, you can explore co-working spaces as a more cost-effective option. Purchasing a certain amount of space in a wework, for example, could allow a rotation of different employees each day to come into the office and take a break from working at home.
Many companies pride themselves on the perks and benefits that their employees receive. It is also one of the top ways for companies to attract and retain talent.
Having said that, these are no ordinary times, and we believe that your employees are just as aware of this as the company is.
The first step is to examine the benefits your company is offering and determine which you might be paying for that are irrelevant to these times, for example, gym memberships in a time when gyms are closed. Other perks could be looked at to understand where you can cut back, and which might be slightly less useful to the work-from-home employee.
The change in your company circumstances will usually affect your work methodologies. It might be time to examine the software your company is paying for to uncover software that is no longer being used. Freezing these subscriptions until they’re needed again can go a long way for your company.
It could also be useful to examine subscriptions that your company is definitely using because you might qualify for a cheaper subscription tier (if, for instance, the volume of your work with that software is lower).
While companies may only be starting to resume some level of travel, it’s important to remember to revise your travel policy in order to make sure it is relevant to the current climate.
For instance, given the uncertainty, it could make financial sense to opt for flexible tickets which might cost slightly more but can help your company save money in case something comes up and you need to change the date/cancel.
In addition, based on a recent survey, travel administrators are spending, on average, 2.8 hours each day to manage the impact of Covid-19 and help their teams travel safe, look up the latest safety information, insurance providers, etc.
Ensuring your travelers get the best duty-of-care and book their travel in the most efficient manner possible doesn’t need to be complicated. Using a travel management platform, like TravelSuit, can help you easily define and manage your policy, automate the approval flow, allow refundable/flexible flights and receive real-time information about Covid-19 restrictions both where your employees are planning to travel and where they currently are in the world.
Making sure your company has low operational costs is always important to do and even more so given the unpredictability of the current situation. Above are some key areas that you and your company should examine in order to determine if there is any way to get even more lean but is in no way exhaustive! We hope this will get you thinking about even more ways to weather the pandemic.