7 of The Best HR Cost-Saving Initiatives
What is one of the best HR cost-saving initiatives that you can take?
To help you save cost on HR operations, we asked HR managers and business leaders this question for their best ideas. From reducing your time-to-hire to focusing on retaining employees, there are several initiatives that you may take to help your HR department save on the cost of its operations.
Here are seven HR cost-saving initiatives these leaders have implemented in their companies:
- Reduce Your Time-to-Hire to Save Money
- Offer a Flexible Work Arrangement
- Automate to Free Up Time to Focus on More Important Work
- Avoid Over Hiring
- Choose an Efficient and Inclusive Communications Channel
- Approach Training as a Strategy Rather Than a Perk
- Focus on Retaining Employees
Reduce Your Time-to-Hire to Save Money
Time is money, and reducing your time to hire will save you money in the long run. How to improve hiring by reducing your time to hire? You can achieve this by working with pre-employment testing companies that utilize competency-based assessments to screen candidates. The best pre-employment testing software, like Reveal, can help you quickly find and hire high potential employees that’ll go the distance.
Linda Scorzo, CEO, Hiring Indicators
Offer a Flexible Work Arrangement
One of the best HR cost-saving initiatives is to offer employees a flexible work arrangement. A flexible work arrangement can take many different forms, such as compressed hours, telecommuting, job sharing, and phased retirement. Employees who have flexible work arrangements are happier and more productive.
In fact, studies show that employees who have the flexibility to tailor their hours to meet their personal needs are more likely to stay with their employer for an extended period of time. Additionally, employers can save money on office space and equipment since employees can work from home.
Automate to Free Up Time to Focus on More Important Work
Great HR pros get into the industry to help people, not do busywork. Fortunately, we live in a golden age of HR software. There are tools to help HR teams do just about everything. To save costs, consider re-evaluating your team’s toolset and – this might seem contradictory – empower your team to increase their HR tool budget. Automation can help with everything from onboarding and tracking applicants to performance reviews and recognition.
There’s a very good chance that your team is spending time on something they don’t need to, so help your team automate and free up their time to focus on the things that really matter.
Ben Travis, Founder, HR Chief
Avoid Over-Hiring
Hiring more employees than needed can create a dent in companies’ financial statements. HR departments must practice prudence when onboarding new employees. It helps to have a strategy in place. Identify the departments that need new members, map out the job descriptions, and brainstorm on how many employees are needed to meet the needs of the company.
Michelle Siy, Content Writer, Oliver Wicks
Choose an Efficient and Inclusive Communications Channel
Frontline workers – who represent 2.7 billion workers across the globe – can be difficult to reach because they’re working on the sales floor, in the fields, ports, highways and hospitals.. If you’re looking for cost-saving initiatives that pack a punch, I’d recommend an efficient and inclusive communications channel to meet people where they are.
This crucial workforce is our frontline with our customers and cornerstone in supporting daily life. We need to provide them with an option that they can trust to connect in a safe way, no matter where they’re working. Building an internal communications platform that’s scalable, anonymous and secure will create a work environment founded on trust and inclusivity. When workers are given a channel to connect on issues like pay, scheduling, equipment, emergencies and how they’re feeling in the workplace – they’re more likely to want to stay with their current employer and find ways to grow within the company.
Muriel Clauson, CEO/Co-founder, Anthill
Approach Training as a Strategy Rather Than a Perk
One of the best HR cost-saving initiatives that will also have a direct positive impact on the business is to move from training as a perk to training as a strategy. This means that instead of giving each employee a discretionary budget where they can take any course they want, you get strategic about linking employee goals to current and future skills gaps.
The former often leads to wasted time and money as the employee completes courses and gains skills they cannot use. The latter fills needs of the organization while fulfilling the goals of the employee creating growth for both with the added bonus of all parties being better prepared for the Future of Work.
Focus on Retaining Employees
Employee retention helps companies to save on cost that is usually used during advertising, hiring, training and on-boarding new employees. Therefore, the HR team can make it an initiative to invest in activities that motivate employees to stay in the company.
These could be things such as giving attractive perks, allowing a flexible work routine and giving worthwhile salaries. Once such conditions are right in the company, the employees do not see a reason to move elsewhere and the retention rate in the company remains high. It saves the company costs that would have been used to replace quitting employees.
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