Definition: is a company’s yearly reduction performed in the amount of resources spent on the identical level of its output. This figure is usually calculated in the form of a percentage of the company’s overall operational costs. A business can achieve such a dividend by using budgetary and financial supervision, enhanced management and administration structures, the introduction of innovative technologies and processes, and improved relationships between the company’s management and employees.
In a Sentence:
The existence of the efficiency dividend is crucial for encouraging managers to find new ways on how to conduct business. A financial incentive is the most effective motivational tool known to the business world.
Even though the efficiency dividend is a great concept, sometimes it isn’t useful at all. Since resources have to be spent before they can be redacted, some companies tend to waste them while chasing the said dividend.
Synonyms and related words: dividend, budgetary control, buyback, running costs, dividends declared