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Efficient businesses continually look at ways to reduce overheads and increasing productivity, however, there are many unseen costs in cutting costs. ‘Don’t cut off your nose to spite your face’?

I was at a speaking engagement – on employee engagement – talking about what we do at RedBalloon and for our clients. As per my previous blogs on ‘Employees are the new customers’, I talk all about the power of what employees say about their employers with some vivid examples and powerful statistics.

After the session one of the guests came up and said ‘I know exactly what you are talking about. I have worked for my company for 9 years – and for our 10th year of service, we are flown to Tokyo for a trip to head office and to be honoured for our service. In the past, we have had about 3% staff turnover a year. We got a new boss last year and one of the first things he did to cut costs was to take away this perk. I was so close to getting my trip you cannot believe how mad I am. Not only that since he changed the rule our staff turnover has escalated to 18%…and the boss wonders why.’ He continued ‘You are quite right Naomi – I tell anyone and everyone who will listen about how stingy my employer has got and that I missed out, just one year before I was due.’

Another person joined the conversation sharing that ‘At our office, we still have them and our attitude – the executives get chocolate biscuits – we get family assorted, they get a tea lady – we get make your own tea. ‘I didn’t think this sort of thing still went on in Australian businesses – effectively the old executive washroom mentality.

What you think you are saving in non-chocolate biscuits – costs you a fortune in disengaged employees who love telling anyone who will listen how archaic the company they work for is.

At RedBalloon no one is ever ‘too important’ to do the basics – our CFO the wonderful Pete is the one heading up the road to buy the loo paper. He always is the number one dishwasher after a company BBQ or lunch. You might think but should such an ‘expensive’ resource be doing such things. (We are only 43 people) but as I’ve said before – ‘As the leadership team goes – so goes the rest of the organisation’.

There is cutting costs – but at what cost. Get your people involved with a program which gets them to think of the best place to find efficiencies and cost savings are. They know, and if they’re part of the process then they will be very happy to support the initiative.

If you are cost cutting watch ours for the hidden costs.

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@naomisimson

  • Friday drinks must be here soon surely ... or I'm out! #friyay
  • In the 90s I left my cushy job at Apple.

I’d be a squillionaire if I still had my stock options.

I don’t regret it. Here's why:

After 10 years of corporate, I wanted to ‘do my own thing’. I started with freelance marketing.

My strategy? Hard work and build strong brands.

It seemed to work - new clients came from referrals.

But after 18 months, I came to a realisation:

All my clients wanted was “more customers”, not complex branding plans.

SO I thought I’d build a brand of my own. Something to get them “more customers”. RedBalloon was born. The purpose? Give people amazing experiences.

16 years on, RB has delivered 3.8 million customers to 2000 small businesses.

Now, when I give talks, I always get the same question: “How did you build such a strong brand?” Funny how it comes full circle.

I can’t answer that with a time limit.

Though I think I found a way - an online course. “How to Build your Business Brand” - years of experience in one place (link in bio if interested). But, that’s not the point of this post.

If I stayed with Apple I’d be unbelievably wealthy.

Quitting was still the best thing I’ve ever done.

So if you want to take a leap of faith, do it.

All I ask you is this:

Trust yourself and never underestimate the power of brand.
  • #tbt the originals circa 2004 🎈 it reminds that an entrepreneurs journey is long and full of twists and turns. What a ride! @redballoonexperiences
  • I have always been rushing! I need to remind myself of this one regularity. I'm intentional, not frenetic. Choose the one thing that needs to get done to make everything easier! #inspiration
  • If you caught @sharktankau tonight I might have mentioned #gettinglucky @luckybuddhabeer 😂 🍺 @ten_insider @beer.pal

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