Big businesses are in business because they know how to handle money. If they didn’t, they wouldn’t have the kind of standing and worldwide recognition that they do. Business is a complex operation because there are a lot of working cogs that make the machine run. A business owner has to be sure that each cog is well oiled so that everything runs like clockwork.
A big component of the clockwork of a business is employees and employee morale. Keeping up morale isn’t an easy job. When world economies are down and businesses have to make cuts to ensure that they can keep themselves in operation, the employees often take the brunt of the repercussions of those cuts.
Of all the places cuts can be made, here are 3 reasons those cuts shouldn’t be made around employees:
Life is Expensive
As a curator of business, you’re seeing the direct effect that a recession has on the economy. You know how expensive life is. You know how health care acts affect your business on an intimate level. Your employees know this too. Employees have to be educated on the difference between Health Savings Accounts and Flex Spending Accounts and things of the like so that they can make educated decisions about where they should be working and how they should go about taking care of themselves.
If you make cuts and take away your employees benefits revolving around health care, they won’t stay with your company, and that’s causes harm to your reputation as well as your financial output because training new employees isn’t cheap.
Morale Directly Affects Sales
If an employee isn’t being taken care of in their line of work, they’re not going to develop very good feelings about the company. If a person doesn’t like they company they work for, they’re not going to work hard to promote that company, make it look good, or increase revenue and sales. If you make budget cuts that include salary cutbacks or taking away incentives or other benefits, your employees will not be happy to come to work and your sales will suffer because of that.
Your Employees Are Your Bread and Butter
When you really look at it, your employees are the hands that feed you. Sure, you created their job and in technical terms, you’re actually putting food on the table for them, but without the day to day tasks your employees perform, your business wouldn’t be able to operate. If you show them disrespect by cutting their benefits and taking away things about the job that make it enjoyable, you’re putting yourself in a bath of very hot water. Do yourself the favor and reevaluate the business as it pertains to spending to see where you can make cuts or be more efficient in ways that won’t affect the employees directly. It will take work, but your business will bloom because of it.