Many organizations nowadays look into ways on how to reduce their operational cost. Some opt for retrenchment or VSS (Voluntary Separation Scheme) for the staff. Some even closed down few unprofitable departments. Our firm is looking into downsizing the physical size of most of the departments as one of the possibilities. But we not sure what will happen once the economy recovers. Is the downsized space remains or it will again expand?

 

Shell learned the pain of catching up with the human resources they have lost as a result of 1997 financial crisis when many of their technical staff were released as the effect of cost cutting operation. And until after 10 years, they are still trying to recover the losses. Some they managed to pinch back from the competitors, but most decided not to rejoin. They learnt the pain of rebound, something which they decided not to repeat during this current economic slowdown.

 

But what are other solutions that organizations/firms/companies can look into to reduce their cost besides these? How about paycut and less benefits for directors/partners? Can KM interferes and helps in? But how?