In any business there always has to be conversations about where you can cut down on spending and get a better handle on your finances. I think most business owners often recognise that whilst their people are their greatest asset, changes must sometimes be made to make sure that the company can weather any storms that might be coming its way.
However, HR is not just important within a business, it’s vital. Cutting corners, or cutting spending without thinking about the bigger picture, could leave you facing problems that will have a tangible and long-lasting impact on your business.
Sometimes it’s essential to be realistic, if you need to make savings to keep your operations afloat, you may need to examine where you’re perhaps spending money unnecessarily, or make choices that don’t result in the best possible return on investment.
If you are thinking about reigning in your HR budget and want to do it the right way, then you’ve come to the best place. Here, we are going to talk you through some key considerations to help you to understand where you can make those necessary cost savings.
Harness the power of technology
How much time are you currently spending on HR activities? From making sure that everyone gets paid on time, through to creating and filing end-of-year review documentation, seemingly small tasks can eat up a huge chunk of your day.
If you think that you could better use this time for more strategic activities, then the answer could be technology. There are plenty of options when it comes to affordable software solutions that improve your levels of compliance and ensure that you always know what needs to be done, and when. HR Revolution offer a great HR admin solution designed to do this to find out more details breatheHR.
Get creative with reward
You need to be offering employees a competitive benefits package if you want them to stick around – and we are sure you are fully aware of the implications that can arise if your best people start to look elsewhere because they don’t feel valued within your business.
The answer isn’t always about pay though. It comes down to getting to grips with what really makes your workforce tick – and often, it’s not what you think. How can you offer more flexibility? How can you empower your employers to lead fulfilled lives outside of the office? How can you create a better sense of community and joint purpose? Remember just throwing money at a problem rarely creates any kind of meaningful change.
Take communication online
How do your employees access important policy documents, employee handbooks? If you are providing hard copies, then make a change and get everything up on your internal intranet system. The cost savings may be very small, but this is about creating more productive ways to operate for the future.
How HR Revolution can help
Ok you may feel that hiring a HR professional is going to involve a massive spend? Well, not necessarily. It’s wise to think about the bigger picture here. Do you have issues within your workforce that are bubbling away under the surface? well ignoring them won’t help and could prove to be hugely expensive in the longer term.
Think of it like this. A modest investment right now could pay dividends in terms of the hassle and fuss that you could avoid in the future. Can you really afford to find yourself facing an employment tribunal, and the consequences that this could have on your reputation as an employer? This might sound extreme, but it’s a very real possibility if you’re just hoping for the best when it comes to complying with relevant legislation.
This isn’t about making cuts for the sake of it. It’s about establishing what’s really adding value and what isn’t, and then implementing changes accordingly.