It might not get touched on often because we as the general public expect tech giants to have billions, many of them do, however, they are still businesses, they need to cut costs. While not the most glamorous topic ever, some of the ways in which modern tech companies save money can actually be quite imaginative.
From severe measures like financial restructuring to paying employees via stock-based compensation, there are literally hundreds of ways that tech companies can save fluid assets. Below we’re going to take a look at the top ways modern software development companies can save their money.
Let’s start off with one of the more extreme options, financial restructuring. Financial restructuring is when a company decides to completely re-organize their spending in order to strip down to a level where the company can still function without going into the red. This often happens when a business is struggling hard financially and/or when their debt payments are becoming too much to handle.
Experts are often called in to help with financial restructuring as it is a lot more complicated than it sounds. Large financial teams, such as those from corporations, often handle the planning aspect tonsure that the tech company in question stays afloat. The continuing existence of the company is top priority; therefore, it literally pays to hire experts.
Paying Employees Differently
Of course, over time, employee wages will continue to increase with both the influence of the market as well as the growing experience of said employees. When it gets to a point where the tech company is struggling financially, paying employees with something valuable other than actual money can be an option. This could come in the form of stock-based compensation.
Stock based compensation is when employees are paid in shares of a company instead of more money. Owning part of a company can be a lucrative offer if the individual receiving stock believes the company will recover and grow in value. The stock, if it grows, could be worth much more than any pay rise in positive. If you would like more information on how stock-based compensation.
Downsizing the Business
Downsizing is a form of saving money for tech businesses that most people will understand or will have heard of. This is probably because downsizing appears in a good number of TV shows, like The Office or Silicon Valley. Downsizing is also exactly what it sounds like, it is when a company reduces the size of all or some of its departments. The part of the business that suffers the most through this process is the employees as some are always made redundant.
While it can be a sad affair to lose sometimes highly valued employees, it can be absolutely necessary for the survival of thatch company. Fortunately, most employees made redundant through this method of money-saving are compensated well upon the news they have to leave. So, while downsizing can be a difficult process, it can also be considered a new fresh start for both the business and the ex-employee.
Sometimes Business is Hard
While it’s never good news to hear that an up-and-coming tech company is struggling financially, it is good to know the methods they may use to try and stay afloat. If you work at a tech giant right now, it may be worth keeping these money-saving strategies in mind so you can know early whether these are being employed in your workplace or not.