A Warning About Cutting Costs

Are you or your team feeling overworked? Burned out? Maybe even frustrated on the job? If so, you’re not alone. Recruiting professionals report that a growing number of workers are finding less joy in the workplace, and many experts predict shifting business trends will only add to the strain across industries. In a customer-service-driven business like jan/san distribution, unhappy employees can quickly create a ripple effect, leading to disappointed clients.

According to The Wall Street Journal, difficult economic conditions and the race to cut costs in order to stay competitive are contributing to small workplace changes that can quietly erode morale. For example, many companies are eliminating minor perks such as free snacks or office coffee. Instead, employees are asked to pay a small fee for that daily caffeine or energy boost.

While the move may make sense from an accounting standpoint, it can impact personal fulfillment and overall workplace culture. Another example, with perhaps a bigger ripple effect, is travel.

Travel is a common line item on the chopping block for many distributors. Although these expenses can add up quickly, eliminating travel can be a short-sighted decision. Virtual selling may be more cost-effective and efficient, allowing teams to reach more accounts in less time, but face-to-face interactions remain critical for long-term customer loyalty and revenue growth.

According to Harvard Business Review, in-person selling helps build deep, long-standing trust with customers, supports more complex negotiations, and can accelerate closing rates by as much as 40 percent.

Benching the sales team may reduce expenses in the short term, but the long-term return on investment often tells a different story. Recruiting professionals warn that sales slumps caused by these types of cuts frequently lead to employee departures. And when staffing becomes an issue, many organizations turn to technology as the solution—sometimes driving morale even lower.

New technology is often an opportunity, but leaning too heavily on artificial intelligence is often perceived by staff as just another way to squeeze more work out of fewer people. Harvard Business Review reports that staff resistance to new technology can threaten productivity and reduce time spent selling to less than 30 percent.

As more companies tighten their budgets, it’s important to remember that the jan/san industry is still a people business. Small decisions can have oversized effects on culture, performance, and retention. Before making cuts, consider the long game because what looks like savings today could cost far more tomorrow.