How Retention Of Employees Is Supported By Cost Reduction Efforts
If value analysis is employed properly, employee layoffs will be the last exercise on the agenda of any institution as justification for cutting cost. In today’s world especially in these times it has been and it’s becoming increasingly popular for institutions to associate employee layoffs to cost reduction.
Layoffs are usually associated to cost reduction because it is the easiest thing to do. However, evaluating and analyzing the amount of yearly savings from value analysis activities suggest otherwise.
The amount of cost savings from well managed systematic value analysis efforts year after year and the results suggests increase in activities.
Most of the efforts are managed with employees who already have other assigned responsibilities. In order to sustain these efforts, a few more resources can be added to improve consistency and maintain revenue flow from the value added and cost savings activities which normally bring sizable return on assets that a company may otherwise not realize.