While things are looking up in recent months, thanks to the vaccination programme, businesses around the UK are still struggling, with many having to slash their budgets in certain areas to stay afloat. But what are some things that business should not cut? In this article, we discuss a few key areas that many look to when making budget cuts but will in fact be key to the long-term success and recovery of a business.
Survival at all costs often means businesses will look to cut back wherever they can and get by with the bare minimum while still being able to function. If this means getting rid of some expensive communications software or cutting-edge People Analytics technology, then so be it. However, by relying on antiquated technology, your business will not only be putting itself at a disadvantage compared to competitors, but you will be making life even tougher for your employees.
In order for staff to perform to the best of their abilities, they need the best technology. Slowing them down and depriving your company of helpful software isn’t going to do anyone any favours. From decreased productivity levels and lower employee satisfaction to weaker results for your business, there are myriad repercussions to be found from trying to pinch pennies when it comes to tech. If your company isn’t using a piece of technology or there is a system that works just as well for a better price, that’s one thing, but don’t disarm yourself of one of your most vital tools on the path to recovery.
New business endeavours
In a world where it is hard to keep a hold of the business you already have; it makes little sense for companies to become overly insular. It’s an understandable mentality to cling to the clients that are already with you but by cutting budgets related to gaining new business, you will always be looking over your shoulder in fear of the next crisis.
The best way to survive is to grow, to get your company’s name out there, and show the world that you are still open for business and confident about the future. You don’t want to be rash about your exploits but a considered and thoughtful approach to new business will benefit your company in the long run. So, keep going to those conferences (or attending them online), don’t slash that advertising budget, explore those new markets. Give your business the chance to recover and grow back to what it once was.
Employee engagement and culture initiatives
During tough times, a business’ best tool is its employees. It can be easy to look at wellbeing programmes, employee engagement initiatives, and your company culture budget and think these are superfluous when it comes to keeping your business going. However, this is the heart of your company, your employees are the best chance you have of clawing back lost ground. Remember why you initiated these programmes in the first place. To make your business a place where people will actually enjoy working and because a happy worker is a productive worker.
If your staff are passionate about the company because they like who they work for and enjoy the environment, they will be more productive, focused, and dedicated to taking your company to where it needs to be. So, keep recognising employee performance, offer training, and provide that happy working atmosphere that is so conducive to a job well done. It’s easy to lose staff when areas like this fall to budget cuts. Recent times have made workers far more concerned about wellbeing and culture that they will jump ship and cause further setbacks to your business if they feel they will be better looked after elsewhere.
What businesses should not cut from their budgets
Technology, new business endeavours, employee engagement, and culture initiatives are some key areas that businesses will be very wise to keep a part of their budgets going forward. The road to recovery will be a long one for many but for companies in trouble, it’s things like these that will make the journey back to success all that much easier.
This blog has been written by James Proctor, Director of Consulting & Services at Phase 3.