The first or second largest expense in almost every organization is labor. Studies show that 60-75% of an organization’s overhead expenses are consumed by their people.
Organizations must:
- Assess the top line versus cost structure.
- Cut discretionary spending.
Now, imagine if your employees could be just 5% more productive every day. Obviously, this would have enormous positive impact on your bottom-line. So, the question of the day is: How can you improve your human capital?
- Ensure employee commitment during cost cutting by asking them how to minimize cost.
- Identify the day-to-today actions staff must perform to drive value.
- Attract and keep top talent by rewarding performance not putting in time.
- Create a value mindset by linking staff actions and incentives with business value drivers
- Ensure full engagement of employees by providing highly valued low cost incentives.
- Objectively differentiate those that add value and those that don’t.
- Reduce head count based on objective assessment of skill and motivation.
- Reward staff for measurably improving individual or organizational performance.
- Make managers and frontline supervisors reward employee merit.
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