Cost Cutting Concepts for Employees

Today, the word “budget” can be a source of uncertainly for employees. Financial stressors, including a decrease in pay, rising health care costs, 401K investments, credit card debt, and everyday bills can have a negative impact on employee production. A recent study in Human Resources magazine found that more than 53 percent of employees experience—and deal with—financial woes at work. So how can you help your employees gain more focus and decrease debt?

Here are some cost-saving tips you can promote in your workplace:

Ask about Qualified Transportation Benefits. Supported by the IRS, employees who commute to work can use pre-tax dollars to pay for mass transit and parking fees. Depending on their commute, this may save hundreds of dollars a year, but is only available if the employer is on board.

Organize car pools. It’s simple: one car with four people equals fewer vehicles on the road (which is good for the environment) and lower costs in gas and wear on vehicles. Try setting up an office car pool by matching interested workers based on where they live.

Promote company perks. Employees could be saving hundreds on gym discounts, group diet programs, smoking cessation programs, and onsite yoga/alternative fitness options sponsored through your company. Check with your parent company to see what may be available or approach local businesses to get discounts on anything from clothing to jewelry to hotel and vacation discounts for your employees. Post corporate sponsored discounts on your company intranet site or highlight them in periodic emails.

Encourage brown-bagging it. Sure, we’ve all heard this before, but would you believe that thousands of dollars can be saved over the years just by skipping the drive thru? Check out this savings calculator from the AARP to estimate yearly savings for individuals. Skipping the fast food lunch for home-made fare is usually much healthier for the body too.

Get some flexibility. If your company does not have one, investigate and implement a flexible spending account for health care expenses. Such programs allow employees to set aside money on a pre-tax basis for deductible medical expenses not covered by their health plan (think co-pays for dental work). Dependent care expense accounts are also available and may be of help to employees who must purchase child or elder care.

Whatever opportunities that do exist to help your employees make the most of their compensation, make sure to promote them. Employees can’t take advantage of the workplace perks, discounts, or cost cutting ideas if they do not know about them.