Not only is making up for 2020’s ugly financial picture a logical thought for businesses as they enter the new year, but it also may be a financial imperative. Under the CARES Act, many firms (including small electrical service firms) took on large debts such as Economic Injury Disaster Loans (EIDLs). While these loans have low interest rates and deferred payment terms, they are still large loans and will have to be paid. In addition to revenue losses, firms incurred new costs for extra PPE (gaiters or masks, and gloves for example), inefficiencies resulting from social distancing, and supply problems. All of these hurt profits.

Getting more projects on the schedule will definitely help in 2021, but there’s also that problem with the new costs. What if you can reduce those?

Despite the pressure to cut costs, don’t be pennywise and pound foolish. Cut costs in smart ways, not across the board or by taking potshots at “easy” budget items.

For example, you could cut costs by limiting how many masks are provided to employees. That’s one of those “easy” budget items. But doing this will result in health consequences from wearing a dirty mask, plus it will increase non-compliance. A better approach is to reduce the total cost of supplying masks by providing washable face coverings. Another thing you could do is help employees boost their immunity, thus reducing absenteeism and other consequences of getting sick. For example:

• Stress is an immunity reducer. What unnecessary stress does your firm expose employees to? That annual performance review is probably worth skipping this year. What annoyances do employees have that can be solved by changes in policy, practices, procedures, tools, and technology?
• Encourage healthy eating. Rather than lecture employees or ban the morning doughnuts from the shop, provide some healthy snacks to help change the mental food reference point. Something as simple as a large bowl of fresh apples or other fruit can make a difference. If you’re inclined to do more, you could offer canned teas as an alternative to canned sodas.
• Keep the air in the shop and offices properly humidified during cold weather.
• Ensure the offices, shop, and vehicles are clean. This doesn’t mean to spray disinfectant, but to instead to apply good cleaning practices on a regular basis. Consider hiring a professional cleaning service.
• Don’t reward people for “sucking it up” and coming to work sick. Coming to work while sick is not heroic; it is inconsiderate. Trust employees to self-police here, and thank those who protect their coworkers by not coming in while sick. If you detect a pattern of abuse, deal with it in a way that doesn’t impair good judgment on the part of those who self-police.

For most businesses, controlling or eliminating meetings is the single best way to reduce cost:

• Don’t have meetings just to have them. If there is not a clear purpose to a meeting, cancel your own meeting or decline to attend if it’s someone else’s.
• Invite to meetings only those who really need to be there. If a meeting (other than a safety meeting) involves more than six people, there are probably too many people at the meeting. Career tip: Don’t invite your boss to your meeting to “keep him in the loop”. He may start wondering why you work for him if you need him at your meetings.
• Try to eliminate informational meetings. People retain very little of what is said at such meetings. Use other methods such as text messages or e-mails.
• Have meetings standing up; this is proven to shorten them.
• Don’t allow off-topic discussions at meetings. Stay focused.
• Once the purpose of the meeting is addressed, assign action items, and end the meeting.