The Smarter Way to Boost (Efficiency) Productivity

Efficiency. Over the last few weeks, efficiency has been wielded as the buzzword for an aggressive assault on costs. For many, ‘efficiency‘ has become a threat rather than a positive aspiration.

When times are perceived as tough, organisations naturally look for ways to save money and often it is the headcount that is targeted for immediate reduction. But cutting jobs isn’t always the best answer⁽¹⁾, however, I am not denying it may have to be part of the overall solution. Redundancies might provide short-term relief, but it often leads to bigger headaches down the road. Lost expertise, stretched-thin teams, resentment and declining morale can all hurt organisational performance in ways that are hard to bounce back from.

There are smarter, more considered ways to improve efficiency and cut costs without reducing your workforce. Investing in digital transformation, process automation and streamlining operations is one avenue to consider -  organisations can boost productivity and save money without the need for drastic actions like job cuts.

Yes, investing when you are trying to reduce costs can seem counterintuitive - read on…

Why Job Cuts Can Backfire

At first glance, reducing headcount seems like an easy way to lower costs. But in reality, it often creates new problems⁽¹⁾, such as:

• Losing Valuable Know-How – Experienced employees take a wealth of knowledge with them, and that’s not easy (or cheap) to replace.
• Overburdening the Remaining Team – Fewer hands on deck means more work for those who stay, leading to stress, burnout, and higher turnover.
• Hidden Costs Adding Up – Severance pay, recruitment costs, and training for new hires can make layoffs more expensive than expected.
• Hurting Your Reputation – Frequent job cuts can make it harder to attract top talent and keep customers confident in your business.

“After a layoff, companies can lose more than $50,000 a month in productivity for every 100 employees remaining.” - Bloomberg⁽²⁾

A Smarter Way Forward

Instead of cutting jobs, organisations should look at improving efficiency in ways that benefit both the organisation and its employees. Of course, there are roles that simply require a person (construction, medical, law enforcement etc) to perform a task at a certain place, in a certain way, however, as these roles are all undoubtedly supported by IT processes, the same ideas can be applied indirectly to those roles.

Automate the Repetitive Stuff

Technology can take over routine tasks, allowing your team(s) to focus on more valuable work. Preparing a complex sales proposal and engaging with the prospective client rather than sorting emails (filing) into priority order and forwarding to various team(s) to action. Other examples include:

• Automated upload, sorting and storage of documents (email, correspondence, orders, invoices…) to a central, secure Document Management System (DMS) to reduce admin time and expedite the allocation for required tasks.
• Process driven workflows automating the issue, sharing, reminders and / or the completion of tasks.
• Data driven, automated customer service tools to improve response times, generate reminders, send notifications and make updates available.
• Integration with other applications to automate repetitive back-office tasks between departments, divisions, suppliers etc

Go Digital

Ditching manual processes and embracing digital tools can make a huge difference. Whether it’s cloud-based collaboration, digital approvals, or automated workflows - streamlining operations helps organisations scale efficiently without extra costs.

Digital transformation also introduces greater flexibility into your organisation around not just the roles and who performs a task but where and when that task is performed.

“Allowing staff flexibility in how and when they perform their role, in line with business needs, can reap rewards in terms of loyalty, increased productivity and reduced absence…” - FSB / Mind.org.uk

If costs are a real concern in the short term, perhaps a reduction in hours or temporary reassignments⁽¹⁾ could help spread the immediate burdens - a process simplified with centralised document and process management tools. Driving an upturn through positive actions.

Refine Your Processes

Before making any drastic decisions, take a step back and review how things are running. 

“Start where you are, use what you have, do what you can“ - Arthur Ashe

Small tweaks - like reducing bottlenecks, improving existing workflows, and eliminating unnecessary steps - can lead to significant savings without cutting staff. If your organisation has already ‘gone digital’ then these changes are usually simple and fast, bringing almost instant relief in process. Use a knowledgeable consultancy (such as PacSol) to further investigate and refine if your organisation doesn’t have the resources inhouse.

It is quite possible you already have the tools to do far more but don’t run before you can walk. Continue after these first small steps - success breeds success - keep going with the process reviews, then tweak a bit more if necessary. As each change starts to show benefits, look again.

The Payoff: Long-Term Savings & Growth

While investing in technology and process improvements might require some upfront costs (modern cloud subscriptions have far reduced this initial cost ‘hit’), the long-term benefits far outweigh the short-term expense. Organisations that focus on smart efficiency gains typically experience:

• Higher Productivity – Employees spend less time on mundane tasks and more time on impactful work.
• Lower Operational Costs – Automating inefficient processes reduces errors, delays, and resource waste.
• Greater Business Resilience – Organisations that invest in modernisation are better equipped to handle future challenges and grow sustainably.
• Improved Loyalty, Reduced absence, Greater productivity - Organisations whose systems and processes support employee’s wellbeing see ongoing reductions in costs associated with unmotivated employees.

Final Thoughts

Layoffs might seem like a quick fix, but they often create bigger problems⁽¹⁾. Instead of cutting jobs, organisations should focus on making their operations smarter, leaner, and more efficient. Investing in digital transformation, automation, process improvements and its employees helps organisations thrive - maximising their returns through profitability without losing or imposing unfairly on their most valuable asset: their people.

So, rather than trimming your team in the name of efficiency, why not empower them with the right tools to work smarter and focus on productivity? 

Toby Gilbertson, Director. March 2025

 

 

#PacSolUK #DocumentManagementSystems #ProcessAutomation #Efficiency #Productivity #FlexibleWorking

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