I have started to apply for internships for the summer and I am trying to contact as many people as possible to inquire about the possible opportunities available in their company. Many of them have got back to me saying that there is a hiring freeze and some companies are also in the process of laying-off employees.
Companies are taking some drastic steps to cut immediate costs in order to survive this bad patch. How can they cut costs? Here are some things they can do:
1. Hire Interns - I am not saying this because I am searching for one. I understand that companies have to lay-off some non-performing resources to cut costs. Hiring interns would be the best option to get the work done at low cost.
Interns(esp. college graduates) would be looking to impress the company and work hard to get the job done. They would also want to add some valuable experience in their resume as they have started to understand how competitive the job market is. By hiring them, an organization need not worry about extra compnsation, health insurance etc and the risk of liability is very less as compared to permanent employees.
2. Go Open Source - One of the best ways now to reduce significant IT cists is to go open source. I cant believe how much licensing costs IT can save by moving to open source products. Although it sounds easy, it is very difficult to implement throughout the organization. Employees who are used to the products will not like the sudden change and they also should be trained to use the open source products. Training costs is much less compared to what a company can save licensing costs.
3. Save on Real Estate - Do you know how much it costs to buy an office at a prime location (say Manhattan or Boston downtown..)???? I dont know, but i bet an acre in manhattan would cost around 100million(just a wild guess). Can companies ask their employees to work from home? Sure they can. People already "work from home" during snow or bad weather conditions. Technology available these days that can help this transition. There is internet, videoconferencing etc to help with this.
A mid-sized company can easily save a huge sum by asking most of the employees to work from home. In cases like client visits, important meetings, they can surely rent an office space on the 40th floor of a nice building for one day and impress their clients.
4. Go Green - Recycle and reuse is one of the best options to save money and this also helps the environment. Its like hitting two bullseye with one arrow.:)
5. Negotiate and Re-negotiate - Everyone wants to sell their products and they will sell it even if it is at a very less profit. So make sure that you negotiate effectively. Shop around to find a better deal.
There are many more ways to cut small costs like reducing magazine/newspaper subscriptions etc. Reviewing your financials will also help you come up with many more things to do, TO CUT COSTS !!!
