What are Soft Savings?
Soft savings, or intangible benefits, are the non-monetary gains and benefits associated with an investment. These include improved customer service, greater efficiency, increased employee morale, better quality of goods and services, higher safety levels and other non-financial advantages. In this blog post we will discuss the definition of soft savings and how they can be factored into an organization’s bottom line. We will also look at examples of tangible investments with soft savings and how they can help businesses become more profitable.
What are Soft Savings?
Soft savings are those efficiencies achieved through changes in behavior or technology that result in lower energy consumption without any initial investment. In many cases, these behavioral or technological changes can be adopted at little or no cost. Studies have shown that building occupants can reduce their energy consumption by as much as 30% through simple measures such as turning off lights and equipment when not in use, setting thermostats to energy-saving levels, and following proper maintenance procedures.
The Benefits of Soft Savings
There are many benefits of soft savings, which is why this type of savings is often encouraged. Soft savings can help you build up your financial cushion, which can provide a safety net in case of unexpected expenses or income fluctuations. This type of savings can also help you reach your financial goals sooner, since you’ll have less debt to pay off. Additionally, soft savings can provide peace of mind and reduce stress levels, since you’ll know that you have some money set aside for emergencies.
How to Achieve Soft Savings
There are a few key ways to help ensure your organization achieves soft savings. One is by using data and analytics to track progress and identify opportunities for improvement. Additionally, it’s important to foster a culture of continuous improvement, where employees feel comfortable challenging the status quo and suggesting new ideas. Finally, investing in training and development can help equip employees with the skills they need to drive change.
Conclusion
Soft savings are a great way to measure the success of an organization or project without relying on hard numbers. By considering intangible factors such as employee satisfaction and customer loyalty, it becomes possible to gain valuable insights that could ultimately lead to greater long-term success for any business venture. Soft savings are also beneficial for setting goals within a company or team, since they can provide a more holistic view of how well resources are being used. Ultimately, soft savings can be very useful in determining the overall effectiveness of an organization and its projects.