Saving costs to maximize profits
According to Anphabe Company, one of the main motivations for Vietnamese enterprises to streamline their organization is the need to optimize costs and improve operational efficiency. Streamlining the apparatus helps businesses significantly reduce costs related to salaries, bonuses, benefits, management costs and other operating costs.
Ensuring sustainable growth
In a market that is constantly changing, adjusting business strategies, focusing on core activities is more necessary than ever. To do that, businesses need a flexible and efficient apparatus that can quickly adapt to fluctuations and seize opportunities.
Anphabe also pointed out that streamlining the organization, although bringing many benefits in terms of efficiency and cost, also poses many challenges for businesses.
employee commitment: After cutting staff, the remaining employees may feel uneasy about their future at the company. Fears of further cuts could reduce their working spirit, commitment and dedication to the organization. Although the rate of voluntary severance pay may decrease during difficult economic times due to a stable mentality, in the long run, instability can lead to good employees seeking opportunities in other places more stably.
Self-efforts: When the number of employees decreases, the remaining employees often have to take on a larger workload, even holding many different positions concurrently. This can make them feel overloaded, leading to a decrease in motivation and willingness to devote themselves to work.
Anphabe's survey shows that 43% of employees report their workload is too high, but only half of them receive attention and listening from their managers.
The capacity of human resources remains: It can be said that the ability and ability of the remaining staff to meet the increased workload and ensure the apparatus continues to operate smoothly is a big challenge. The reduction of personnel can lead to a shortage of skills or experience in some positions, affecting the overall operational efficiency of the business.
