This post is a compilation of office cost-saving ideas.
It does not matter whether your office is a small solo entrepreneur or a huge corporate office, you can reap benefits from the 21 office cost-saving ideas.
Let’s dive in.
21 effective office cost-saving ideas
Here are 21 suggestions on how you can reduce your office expenses:
1. Recycle all recyclable items
Usually, the office will have unused papers such as newspapers, printed documents, magazines, proposals and faxes.
What you can do is don’t just throw these papers into the dustbin. Instead, collect them and arrange them accordingly, whether white papers or coloured papers.
Once a month, sell to the recycling companies.
Other than papers, printer or fax cartridges are also recyclable. Make sure not to wait until the cartridge head is dried.
2. Reuse of paper or envelopes
I am sure there are papers that resulted from wrong printings, old documents or just plain papers which can’t be used for external purposes. Why not reuse these papers for internal purposes?
If the paper only has printing on one side, you can print on the reverse side for unofficial usage. Or you can cut the papers into smaller pieces and use them as a memo or for writing notes.
Besides paper, the envelope is another item that most companies can reuse and reuse again. I have seen an envelope which has been reused more than 5 times!
3. Negotiate for a lower price when asking for quotations
This involved your staff or your negotiation skills. Whenever asking for quotations, firstly do some homework and make sure you know the lowest market price.
Then, try to get your suppliers to quote lower than these market prices. If you never try, you never know what you’ll get.
4. Switch off electronic equipment when not in use
We all learned this from primary school. They are common sense. But, do we really practise them?
Next time, if you are the last person who leaves the office, make sure all electronic equipment is turned off. You should see a significant saving in your electric bills.
5. Use emails for communication to save on phone call or fax charges
Nowadays, most offices are equipped with Internet or broadband facilities. Fully utilize it.
Encourage staff to use emails. Talk less through the phone. And encourage all staff to use email attachments instead of fax.
6. Reduce unnecessary printing or copying
Always think twice before printing any documents. Also, if the printings are meant for internal purposes, try to save on cartridges by using the economy or draft printings.
7. Educate all staff on the importance of cost-saving
From my experiences, a lot of company staff don’t bother to participate in cost-saving. Because they feel like it’s not their responsibility to monitor or control the company expenses.
So, if you are thinking to save costs on your company expenses, firstly you must educate your staff on the importance of cost savings. Also emphasize its benefits to the company, the individual and to the global as a whole.
Most probably, the majority of the staff couldn’t care less. But, it does make a difference even if only 1 staff starts to take action.
8. Subscribe for alternative voice solutions
Other than the national telco service provider, there are plenty of alternative voice solutions which can provide your company with much lower phone charges compared to your current national provider.
Most of these alternative voice solutions enable your company to call outstations or mobile with much lower rates, some can even provide a saving of more than 50%.
9. Request for bundled services
Try to request your service provider to bundle a few applications for your company. Perhaps can bundle the phone, data and other communications services from the same service provider.
I am sure they would be very happy to offer the services as it is a win-win situation.
10. Negotiate for a lower office rental
If your office premise is on a rental basis, most probably the landlord will try to increase the rental during the renewal of the tenancy agreement.
Don’t just simply agree with the new rental. Try to request to maintain the office rental or if the landlord insists on increasing, try to negotiate to reduce the increment.
If you never request, you will never get it!
Else, you can consider relocating your office to a new premise which offers a lower office rental.
11. Limit newspapers or magazine subscriptions
Does your office really need newspapers subscriptions to different languages and from different publishers? Does your staff really read newspapers or magazines?
If you reduce one newspaper subscription, your company can easily save around RM30 per month. Encourage your staff to get up-to-date news from the Internet at no extra cost.
12. Switch to the energy-saving light bulb
For most offices, the lighting will be switch on during office hours, a typical 9 hours a day. Thus, switching to an energy-saving light bulb will definitely bring extra savings to your monthly electric bills.
13. Install a dual flush system for washrooms
Use half-flush for flushing liquid waste instead of a full-flush. Your company will be able to save about 40% on water bills.
14. Control new purchases
Do you really need to buy a new computer or laptop for your staff? Or the existing computer is still functioning for at least a few more years? How about upgrading instead of buying a new one?
By controlling new purchases especially huge purchases, it does help to save cost in an organization.
15. Limit staff overtime claim
Did the Human Resource or Audit Department really check through the staff overtime claim? Do your staff really need to work overtime or they are just taking the opportunity to get extra cash?
Make sure, the overtime claim is with valid reasons and with approval from the department head.
Overtime claim does not only means you are paying the staff for the extra works, but also for those additional hidden expenses such as electric, water and heater cost.
16. Review company functions
Is it really necessary for your organization to organize monthly, quarterly or yearly functions? I meant the grand and expensive functions at 5-star hotels.
Or, is there a way to trim down costs by organizing the same function at the meeting rooms or company hall? The most important part is to make sure the objectives of the functions are met.
17. Reduce entertainment cost
This is another area where staff can easily misuse the employee benefits given to them. Give your employees the limit of entertainment cost.
And remember to validate before reimbursing the expenses.
18. Advertisement cost
During the economic slowdown, consumers are more reserved to respond to the advertisement.
So, review your advertising strategy as advertisement is one of the most expensive costs paid by most organizations.
19. Reduce and control the frequency on courier charges
Most companies will need to use the courier service to send documents, parcels, products or other items to their customers, suppliers or other organizations. What more to say if it is multinational companies or huge corporate with offices worldwide.
Courier charges will be just like telephone, electricity or water bills. It is a necessity. Bear in mind to control these courier charges.
Perhaps select one courier day in a week where only on this particular day, your staff can send a courier. Of course, provided the courier is not really urgent.
Also, avoid sending 2 different couriers with different consignment notes from your organization to the same destination.
And do ensure your Logistic or Admin department take control, track and make proper arrangement for all courier service. If implemented successfully, you will see a drastic drop in your courier charges invoices.
20. Cut down unnecessary face to face meetings
I believe the majority of us do not like to have a meeting. But we do need to meet up and find solutions to problems. Face to face meetings can use up a lot of resources.
For a company with offices worldwide or nationwide, to arrange a meeting for all the representatives from different regions is wasting a lot of their resources on the below:
- travelling hours
- air tickets
- accommodations
- staff claims
And yet, can the meetings come out with effective results?
With the current developing technology, why not try to arrange for something different? Perhaps can try teleconferencing or video conferencing through Skype?
Most importantly, just make sure the objective of the meeting is met.
21. Alternative air travelling arrangement
Why I specifically mentioned air travelling is because it is the travelling method which is most expensive if you compare to the land or sea travel method.
But, the good news is there is always an alternative air travelling arrangement.
Try to look for alternative airlines which provide much lower air tickets compare to the standard charges. If possible, try to book and make travel arrangements ahead of time to avoid sky-high air tickets.
Final thoughts
I hope the office cost-saving ideas above will bring benefits to your organization.
Some of the above ideas not only will significantly reduce office expenses but will also bring in extra cash for your office and most importantly environmentally friendly.
If you have other office cost-saving ideas, feel free to comment below.
