Posts Tagged ‘Cost’

In my most recent blog, I discussed 10 practices that will optimize your job security. Today, I want to elaborate on the first practice; Ask questions and be an active listener. Are you asking the right questions on the job? The biggest challenge I see for people who are looking for a new job is that they cannot identify the value of what they have been doing in their career. A vast majority of professionals view their job in terms of the process or tasks they do on a regular basis. The problem is that this just reinforces the fact that you are a commodity in the eyes of the employer. What you have to keep in mind is that in order for you earn a salary, you need to:

  1. Help the company generate more revenue than the cost of employing you
  2. Help the company save more costs than the cost of employing you
  3. Help the company mitigate more risks than the cost of employing you

If you do this, there should NEVER be a reason for your position to be eliminated in a cost reducing restructuring. Unfortunately most people when asked to identify and quantify their accomplishments, they just say that they do not have that information. If you are an IT manager, and you develop and implement a system for the company, what are the results of your work, and what is the return on the company’s investment? Just because you have done a project or task, does that mean you have done it successfully? How do you then define the success? In order to really understand this you need to ask questions about the purpose of the task, process or project you are working on.

In our career, we need to be extremely proactive in asking questions. These questions can include some of the following:

  1. What is the purpose of what I am doing?
  2. How does it fit into the achievement of the company mission?
  3. How does it impact the performance of others?
  4. What are the measurable metrics before you start?
  5. What are the measurable metrics after you finish?
  6. What is the cost of your project, task or process?

You should be talking not only to your supervisor, but talk to the stake holders in the project or tasks you are working on. Make sure you understand the objective and what they are looking to achieve from your work. Understand how it will impact their job. Talk to team members in other departments, and learn how your work impacts them? By taking these steps, not only will you better understand the value you deliver, but people you work with will also understand the value you bring.

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Over the past several years, the news has been filled with huge layoffs by companies trying to cut costs. Is this a strategy that really helps a company? Every day, in the course of networking, I have the opportunity to talk with, not only people who are in transition because of cost cutting efforts, but also I have opportunity to talk with people “left behind” after the cost cutting. The story is so often the same. Significant resources of knowledge and skills have left the company, leaving those left behind swimming against a rip current. The more they struggle to make up for lost resources, the further fall behind on objectives. They are asked to do more and more, all with decreasing efficiencies and effectiveness. Managers are looking to leave the company because they no longer have the assets in place to meet the demands for the company to succeed.

In a corporate environment, every person in the company, through the tasks and projects they work on, needs to contribute in a way that they are helping the company do one of three things:

  1. Help the company generate revenue
  2. Help the company reduce costs
  3. Help the company mitigate risks

If an employee is not doing this to a degree greater than their annual cost, it really doesn’t make sense for the company to be paying them. The company should not wait for a crisis to let go of underperforming employees. Typically, companies expect to cost savings or revenue generation 3 to 5 times the cost of the employee. If the employee is achieving this success, it NEVER makes sense to cut the employee to save costs.

Does your company understand the true value brought by your employees? Is your company costing itself more by trying to reduce employee costs?