CORONAVIRUS - COSTS - 22.06.2020

Return to work savings

During the coronavirus lockdown, many businesses will have closed their offices with staff working from home. However, most will return to the office or site at some point. What are the five overheads where you can cut costs as you get back to business?

Cleaning

This is likely to be top of every business owner’s to do list. Most will be looking at increasing the frequency of cleaning and this will push up monthly overheads. However, there are things you can do to keep these to a minimum. Tip 1. Do a walk around to explain to the contractor what’s required. Ask them to focus on essential cleaning and nothing more. Explain that staff will be taking responsibility for clearing away desks, loading dishwashers, etc. This will improve the speed at which cleaners can work and bring the contract costs down. There may also be less space to cover with fewer people in. Tip 2. If you are investing in new signs to remind staff of any new systems in place, e.g. hand washing and social distancing, don’t go overboard. Research shows that the greater the number of signs, the more likely they are to be ignored.

Energy

Being energy efficient is a sure-fire way of cutting costs quickly and with very little investment. Check the thermostat. You closed the office when it was March and now summer is here so you can turn the heating off! Take a meter reading. If your energy bill is paid by direct debit, then the chances are that you are in credit if the office has been closed for months. Use the up-to-date reading and ask the supplier to recalculate your monthly or quarterly bill accordingly, factoring in any reduced hours/production that will see energy demands fall.

Water

You might not think you use enough water to save any money. However, using recent figures for the highest and lowest tariffs available, a small business (average consumption 200m3 ) could be paying almost £600 rather than £300. Water usage could well increase too, as staff will be washing their hands more regularly. Finding a new deal is relatively straightforward; there are comparison sites like Utilitywise or information is readily available on most suppliers’ websites. You don’t have to switch: if you find a cheaper deal ask your current supplier to match it.

Waste

Waste contractors like to charge per bin lift rather than per kilo. The lift price is based on the bin being full, so it will cover their transport costs, any tax for landfilling, etc. If it isn’t full, their margins increase. Example. You return at 50% capacity, so the chances are you have around 50% less waste. Tip. Work with your waste contractor to reduce the size of the bins or the frequency of collections to bring your bill down.

Paper

Another area in which you can reduce wastage easily is paper. A small office can get through £6,000 worth of paper a year, 68% of which is waste, e.g. unnecessary prints, duplications, wrong documents, etc. Add on ink, printer maintenance etc. and the cost can rise to over £12,000. However, the lockdown has forced remote working and as such staff have moved a step further towards paperless offices. Tip. Staff working from home won’t have been as print-happy as they were in the office, so when they return keep this approach going with a “think before you print” policy.

On returning to the workplace take a meter reading. There’s a good chance your account will be in credit. Talk to your waste contractor - it’s likely they charge per bin lift so if your waste output is down, you’ll be over-paying. Savings can also be made on paper and water consumption.

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