Cutting costs is a priority for large companies today as they look to adapt to a changing economy and ensure long-term sustainability. Implementing effective cost-saving ideas for large companies has several benefits and advantages, including:
- Cutting waste and realigning resources
- Investing in new projects or employee benefits
- Improving revenue and profitability
- Enhancing productivity and operational efficiency
- Reducing expenses and improving cash flow
- Encouraging innovation, continuous improvement and flexibility
However, companies need to cut costs strategically or they risk harming productivity and operations.
Take a look at cost-saving strategies for large companies that will help you optimize expenses while maintaining productivity and employee satisfaction, no matter your company’s size.
Why large companies should consider cost-saving strategies
Many large organizations get lost in their day-to-day operations without recognizing the impact waste has on their bottom line. As a company grows, it can be easy to tack on added expenses or costs due to disorganized processes and siloed departments. Cutting costs improves business operations first by saving the company time and money, which improves cash flow and profitability while realigning resources where they’re needed most.
Committing to a cost-saving culture also improves efficiency and productivity within the organization. For example, by regularly examining tech stacks and workflows, teams can spot and fix barriers to employee work quickly.
Cost-saving strategies also make companies more flexible and prepared for crises. During economic downturns, large companies that have created reserve funds and more efficient processes are ready to respond better to changing market conditions, customer expectations or job market fluctuations.
10 cost-saving strategies for large companies and enterprises
Almost every business can benefit from implementing measures to save costs. Large companies and enterprises face unique barriers to cost-cutting due to their size, but the following strategies apply to any business.
1. Audit and eliminate unnecessary overhead
The first step to identify savings is to thoroughly audit your overhead costs. Overhead refers to any expenses your business has to pay to run the business. This doesn’t include direct costs associated with producing goods or services, like salary or inventory. Review expenses like utility bills, rent, office supplies, or other recurring costs to see if you’re overspending in any areas. Then you can reduce overhead costs in the following ways:
- Renegotiate contracts with suppliers
- Right-size office space
- Implement energy-efficient systems or more cost-effective service providers
2. Leverage automation and technology
Leveraging technology gives companies powerful ways to enhance efficiency and reduce costs. Automation tools streamline repetitive tasks, giving employees time to focus on higher-value activities. Cloud-based solutions also lower IT costs by reducing the need for expensive hardware and technology. Automation and technology not only cut costs; they also improve productivity and employee satisfaction. Consider implementing these measures:
- Automate invoicing, time tracking and expense management systems to streamline financial processes
- Implement customer relationship management software to enhance sales efficiency
- Use cloud-based programs to increase collaboration and productivity
3. Shift to remote or hybrid work
Your company’s largest expense is likely your real estate. Add utilities, janitorial services and security to your monthly rent or mortgage payments, and your business is probably looking at a sizable bill. Introducing hybrid or remote work can cut these costs dramatically, even while investing in technology to support remote work. Offering remote or hybrid schedules increases employee satisfaction, which also lowers costs incurred by turnover, hiring or training new employees. Your company doesn’t have to go fully remote to see the cost-cutting benefits of remote or hybrid schedules.
- Allow remote-capable roles to work remotely and cut back on total office space
- Have all employees work remotely one day a week or switch to a four-day workweek to cut down on utility costs
- Shift employees to fully remote work and shut unused offices
4. Streamline operations with data and workforce analytics
Using data analytics provides valuable insights into operational efficiency and employee performance. Companies use workforce analytics to find inefficiencies, optimize resource allocation and enhance decision-making to find significant cost savings while upping productivity.
- Analyze employee engagement levels to identify areas for improvement and reduce turnover
- Find and fix inefficient workflows and bottlenecks with productivity monitoring
- Cut unnecessary meetings by comparing focus time vs meeting time across the organization
5. Encourage employees to be cost-conscious
Creating a culture of cost consciousness among employees can lead to significant savings for large companies. Asking employees to contribute to cost reductions also fosters a sense of ownership and accountability while adding innovative ideas to cost-saving processes.
- Hold regular training sessions, workshops and open discussions on expenses and financial goals
- Reward employees who find ways to improve spending or reduce waste
- Include cost-saving methods in onboarding training and employee handbooks
6. Use organic social media and SEO tools
Marketing is indispensable in today’s digital age, but there are less expensive ways to get the word out about your company effectively. Optimizing your website for search engines and leveraging social media presence are ways to attract potential customers and candidates without an extensive advertising budget.
- Prioritize engaging content and authentic interactions on social media pages for organic growth
- Use social media to showcase workplace culture to attract top talent
- Update your website using SEO best practices to ensure your site shows up in search results
7. Standardize procurement for bulk buying power
Many companies don’t recognize how much they can save by leveraging their buying power for better pricing and terms. Standardizing the procurement process reduces costs while simplifying buying for the company. Tracking and analyzing supplier performance allows you to make more informed decisions on your procurement strategies.
- Implement a centralized procurement system for better visibility and control
- Consolidate purchases and negotiate bulk deals with suppliers
- Leverage long-standing relationships with buyers to negotiate longer payment terms and open up cash flow
8. Identify and eliminate redundant software licenses
Large companies tend to have extensive tech stacks, and unused licenses or improperly used apps can cost the company millions of dollars. Unused apps and redundant software programs also cut productivity and employee efficiency. Regularly reviewing software spend with a comprehensive audit pinpoints these inefficiencies.
- Identify and eliminate unused software licenses
- Monitor software usage to ensure employees have the right tech tools and know how to use them
- Compare software systems to find redundancies
9. Support higher performers to prevent burnout and attrition
Investing in employee well-being is a priority for retaining top talent and preventing burnout. High-performing employees are the backbone of a company, and losing them can lead to significant costs associated with recruitment and training. By providing support, resources and opportunities for growth, organizations foster a positive work environment that encourages retention.
- Implement wellness programs and encourage employees to take regular breaks
- Provide flexible work arrangements so employees can prioritize their wellness and enhance overall productivity
- Offer professional development programs to increase employee engagement and upskill workers
10. Use benchmarking to set smarter goals across departments
Benchmarking against industry standards gives you valuable insights into performance and cost management across your organization. Comparing metrics across departments also uncovers areas for improvement and helps you set realistic, data-driven goals. This encourages accountability and fosters a culture of continuous improvement.
- Identify best practices within your industry and compare your company’s performance against them
- Monitor and analyze cross-departmental performance
- Develop realistic key performance indicators (KPIs) to compare work over time and find areas for improvement
Examples of how to implement cost-saving strategies in your organization
Every large organization has its own budget, costs and processes, but here are a few real-life examples of how large businesses can cut costs:
- Reduce inventory – Inventory takes storage space, whether it’s physical products or digital assets. Evaluate your physical inventory to see if you can reduce the amount of product you keep on-hand. Similarly, determine if you can reduce or upgrade digital inventory such as data centers or employer-provided assets like laptops or phones to cut down on costs.
- Update travel policies – Travel costs are another area large companies can usually cut costs. While video calls and webinars can’t fully replace in-person meetings, many conferences today offer online access. You should also enact policies regarding economic travel for flights, ride share services or company-provided vehicles to keep costs low.
- Outsource or use contractors – Sometimes, large companies need to hire more workers but can’t justify full-time positions. Freelancers or seasonal workers are a way to fill the gap without adding the hiring or training costs associated with full-time positions. There may also be organizations outside your company that can provide services for a lower cost than you can accomplish with internal resources.
- Champion sustainability – Eco-friendly updates to operations can have a big impact on utility bills and energy costs. Consider electrifying your vehicle fleet to reduce gas expenses or investing in green-certified buildings to lower heating and cooling costs in your office.
- Evaluate employee benefits – Large companies may offer employee benefits that employees don’t really use, like free snacks or in-office amenities. Some paid benefits like health or life insurance may be more expensive than necessary. Monitor which benefits employees use and cut back on unnecessary ones while maximizing the benefits that matter.
- Downsize – Whether it’s the amount of products or services you offer, the size of your office space or your headcount, it’s best to take a good look at what your company needs as you evolve. Evaluate your product line and customer base to see which are worth focusing on. Find underutilized employees and give them more valuable work to do. Right-size your office space based on how employees use it.
Bring cost-saving ideas for large companies to life with ActivTrak
Companies of every size benefit from implementing cost-saving measures, but organizations must balance cost-cutting with productivity to maximize that benefit. By auditing expenses, leveraging technology and fostering a cost-conscious culture, organizations uncover significant savings that contribute to their bottom line.
Leverage ActivTrak’s workforce analytics suite to start cutting costs and saving time in your organization. Our award-winning tools drive efficiency with actionable insights on productivity, software usage, employee engagement, operations efficiency and more. Start making more informed decisions about where to cut costs without damaging your employees’ productivity. Contact our sales team today to unlock your organization’s full potential.
