Why employees are the best source of ideas to reduce costs


Cost reduction has become a necessary and important reality in the modern business world. However, many executives do not realize that their people are actually the best source of ideas for cost reduction.

There are many reasons for this.

For starters, a highly motivated workforce that understands the bottom line and its importance to the future of a business and, by extension, their own future in employment can make a huge difference in any cost-cutting effort. It also means that any cost-cutting ideas they suggest will be received much better by other workers and therefore implemented with much more enthusiasm than a directive from the board or top management. In other words, it will be a lot less painful for people to implement.

Then there is the fact that workers at work are in a much better position to recognize and identify waste. They are actively involved in the processes, unlike managers who rarely go into the details, but are actually hired to keep their focus on the big picture or the end product.

Non-administrative staff also have more time to think and come up with ideas for improvement. This is in stark contrast to managers who have numerous tasks, such as writing reports and analyzing figures, among a host of other tight-deadline tasks that they generally must meet. This generally leaves them very little time to think of ideas that they can implement to improve the business. Unfortunately, the reality is that many managers spend most of their time desperately putting out fires.

These are just some of the factors that have made all workers in companies around the world the most valuable source of improvement ideas that companies need to survive in an increasingly competitive market.

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