Using Flex Time and Telecommuting to Cut Costs
One of the biggest challenges for CFOs is finding new ways
to cut costs, especially in today’s tight economy. With many companies unable
to offer raises, stock options and other benefits to their employees, they must
look for new ways to lower operating and training costs. Today we are going to
talk about two such methods: Flex time and telecommuting.
Flex Time
Flex time, or flex scheduling, allows employees to work a
non-traditional schedule in order to meet their personal needs. The number of
work hours per week is the same, but employees choose which of those hours they
will spend working, and which they will spend taking care of personal matters.
There are three ways to implement flex time:
- Compressed work week. An employee squeezes a 40 hour
work week into less than 5 working days, such as 4 ten-hour days.
- Core hours schedule. The employer defines a range of
core hours, such as 10:00 am to 3:00 pm, during which employees must be at
work. The individual employee can then pick an arrival and departure time,
for a total of 8 hours per day, that includes those core hours. For example,
an employee may choose to start work at 6:30 am and leave at 3:00 pm.
- Adjusted lunch period. Employees can choose to take
time off in the middle of the day to run errands and adjust their start or
leave time accordingly. For instance, if an employee started the day at 8:00
am and went to work out from 11-1, their work day would end at 6:00 pm.
(Womans-work.com)
Where it helps the employer’s bottom line is through better
employee retention and therefore lower training costs, and increased
productivity.
Telecommuting
Another cost-cutting strategy is telecommuting or
teleworking, where employees work at home via email, fax and phone for all or
most of the work week, and usually only attend at least one weekly, monthly or
quarterly meeting at the job site. The advantages of telecommuting are:
- Increased productivity—currently estimated to be between
10 to 15% according to The American Telecommuting Association.
- Saves money. By having just half your workforce
telecommute at least one day a week, you cut down on your need for offices,
lighting, desks, and everything that goes with them by 10% (ATA).
- Saves time. Employees who telecommute save an average of
one hour per day that can be spent working for their employer instead of
driving to and from the business location (ATA).
- Better employee retention. Telecommuting helps the best
employees remain longer with the same employer, cutting down on hiring and
training costs. Telecommuting also makes it possible for an employer to reach
out another 30 miles or more when searching for qualified employees.
You should also keep in mind that teleworking does not
necessarily mean telecomputing. Non computer-related tasks such as reviewing
documents, going over expenses, or practicing for a presentation can all be done
at home without expensive office equipment.
Two things you must do when implementing such programs:
- Take into account the needs of the entire workforce,
including both employees who would benefit and those who would have no need
for such programs.
- Ensure proper communication to your employees so they
know that these programs are available to them. This includes training direct
managers and supervisors on the importance of these programs for the employee
as well as the firm.
Flex time and telecommuting are great cost-cutting
strategies that lower costs while also building and maintaining employee
loyalty. If you’re looking for some innovative ways to lower your company’s
operating expenses, you might want to give one or both of these methods a try.
David Payne
dp@benchmarkresources.net
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