How to reduce your HR costs

In the uncertainty of today’s economy, it has become increasingly difficult for businesses to flourish, and sometimes even survive. Which is why for many companies, cutting or significantly reducing costs has become a necessary practice. In many cases, each individual department is being asked to cut their own individual costs, meaning that no rock can be left unturned. Therefore, while many human resources departments are responsible for making sure that money is being spent wisely and valuably, even they are not exempt when it comes to reducing their own expenses. So, we have put together some top tips on how you can reduce your HR costs, but without losing some of the best aspects of your business!

Implement Methods to Reduce Risk

It is always worth the extra time and effort when it comes to reducing risks in the workplace, and it is often the human resource team’s responsibility to deal with any employee issues, including accidents. Therefore, it is worth spending some time reviewing and assessing the business as a whole and implementing methods that could help to reduce potential accidents or issues. This could be as simple as investing in some wet floor signs to highlight slippery floors to staff and reduce accidents. You may be surprised at how much money could be easily saved every year by being more conscious of potential risks.

Eliminate Unnecessary Programmes 

When you take the time to look at all of the programmes and aspects of the HR department you may find that there are some unnecessary initiatives in place that could be removed to cut cost without any negative consequences. Obviously, if eliminating these programmes results in having to cut staff then this will not be well-received, but removing a programme doesn’t mean that you have to lose staff. Instead, you could just find them a more valuable role within the company.

Consider Outsourcing

Many businesses are outsourcing their HR internal work to an external consultancy firm in order to cut costs. While there are many other benefits that come with outsourcing your HR to an expert and professional company, it can help you to save money. If you dedicate an area or department of your office space to an HR department, then outsourcing also means that you won’t have to pay the maintenance costs and instead can use that money elsewhere. It may even allow you to move to a smaller office space, thus consequently saving you more money.

Reassess Your HR Strategy

There are different styles of HR and it is important that you are implementing the right kind for you and your business. For example, Commercial HR offers a commercial approach which aims to work closely with a company to help it achieve its own goals and targets. Reassessing the type of HR strategy, you are following could help you save money further down the line.

Whether you are actively trying to cut costs or not, it is important that your HR is always providing the best value for money to avoid having to cost-cutting and potential downsizing in the future.