18 Nov 2009
When I was appointed as HR manager about one year back, you emphasized the importance of cost cutting of expenses to increase co operate profitability. Here I am delight to report you that we have managed to cut about 15 % of day to day running cost of the staff during last quarter. I would like to share you a secret behind one of our success story in new HR-Operational policy. Please do keep this information confidential.
Being a knowledge centric company we spent considerable amount of money for day to day staff welfare. We have provided only the basic necessary facilities like water, toiletry and transportation (only for those executives who are willing to work late hours without any extra compensation) to the staff. Therefore, we found it extremely difficult to identify avenues to cut the cost. However, after detailed analysis of operational cost for the last two years, we identified few areas that we may further reduced.
Since the company was formed in good fifteen years back, our employees were provided with small snack together with the evening tea. Though it’s a small snack, it accumulated to be great cost due to recurring nature. We decided to cut this cost. We knew that it is going to be a very unpopular decision. But I am delighted that we have role out our cost cutting plan with great success. Here is the secret stort of the success.
Firstly, I assigned an HR executive to track the birthdays of all the employees and publish those in company’s co-operate on the dash board. At the same time she was assigned the task of decorating the cubicle of the poor birthday boy/girl’s (or rather uncle/aunty) cubicle in the early morning. So when the poor billy boy comes she was the first to go and wish him ‘HAPPY BIRTHDAY’ so that naturally, the fellow staff members follow.
Then the important part of singing the “Happy birth day” song follows by the strategically important demanding of the treat. By that time the HR initiated Birthday is no longer a private occasion for the birthday boy and his close friends. So the poor guy has to serve whole company (Our Company of around 150 employees are just the right size for this) with a birthday treat.) Our HR executive is more than happy to help in arranging the treat on behalf of the birthday boy.
So we are lucky that we get a birthday almost every other day (and the poor employees are lucky that they will get the birthday only once a year), so that all the employees get evening snack almost every other day.
By exploiting this strategy we managed to gradually slip off from serving evening snack by the account of company expenditure. The employees were happy that they get better quality birthday treat rather than petty same snacks they used to get all the time. But they hardly get to think that now they themselves are absorbing the cost of the evening snack that they were privileged to get by the expense of the company for long time.
This is how we managed to reduced considerable cost without much of a hustle. In the same time we have enriched co-operate culture by adding a bit of festivity without spending a single penny from co-operate budget.
The annual salary revision cycle conducted by HR department is almost completed for employees without much of a hazard. Thanks God for Global Recession this time (though our business in never effected by this bull shit happening in USA) which reused us from much of undue queries this time.
I hope that you will appreciate the successful implementation of our cost cutting policy and by the same time improving employee delight and co-operate culture within our company. I do hope that you will consider my success in complying with the assigned responsibilities in the up coming co-operate compensation package revision.
Yours (and only yours) faithfully,
Human Resource Manager
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