Assume a company earns 10% of sales. If they can save $25,000 in salaries, that’s equivalent to an increase of $250,000 in sales. In the present economy, such an increase in sales would be difficult. And yet there is so much wasted time among employees, a savings in time of $25,000 annually does not seem difficult at all. By working more efficiently and effectively, the increase in employee productivity could offset any reduction in staff through attrition or could negate the necessity of hiring people as sales increase.
The same effect is accomplished through reduction in other areas as well. Reduced paperwork or material costs to the tune of $25,000 would also be equivalent to a $250,000 increase in sales. Through effective time management, employees could do their jobs in less time, devoting the free time to reducing costs in other areas. For example, companies may want to launch a value analysis or cost reduction program or creativity and problem solving sessions – but just don’t have the time. Personal time management can free the necessary time to devote to these profit generating activities. They don’t have to reduce staff to save money. They simply have to utilize staff more fully.
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