At some point most businesses will face difficult times. The more you prepare in advance for these periods the easier it will be to weather them, and the less reactive you’ll have to be. When times are tough, conversations inevitably turn to where you can cut down on spending. Leaders 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.
HR is important, it’s vital. If you cut corners, or cut your spending without thinking about the bigger picture, you could find yourself facing problems that will have a tangible and long-lasting impact on your business.
Here are five key considerations to help you to understand where you can make those necessary savings.
1. Harness the power of technology
How much time are you and your administrative staff 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.
2. Get creative with reward
You need to be offering your staff a competitive benefits package if you want them to stick around.
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 workers to lead fulfilled lives outside of the office? How can you create a better sense of community and joint purpose? The answers aren’t always obvious, but it’s definitely worth taking the time to unearth them.
3. Audit and discard things that aren’t adding value
Perhaps you’re paying ongoing subscriptions for people management software that you never use. Maybe you’re paying for benefits that your staff don’t really care about. Small things can certainly add up, so an audit of what you’re spending and what might be completely unnecessary can be extremely helpful.
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.
4. Take communication online
Right now, how do your staff access important policy documents? If they’re hard copies being distributed by your leadership team, then make a change and get everything up on your intranet system. The cost savings may seem small, but this is about creating more productive ways to operate for the future.
Consider how your staff are communicating with each other on a day-to-day basis, and how you’re touching base with your leaders. If huge chunks of the day are being taken up with travelling and attending meetings, then you need to rethink your approach. Sometimes, there’s no substitute for a face-to-face discussion. A lot of the time though, it’s very possible to catch up via online meeting technology.
5. Bring in a professional HR consultant to get things in order
This one might surprise you. Surely, hiring a professional is going to involve a massive spend? Well, not necessarily. It’s wise to think about the bigger picture. If you have issues within your workforce that are bubbling away under the surface, then ignoring them could prove to be hugely expensive in the longer term.
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 see your best talent leaving the organisation due to poor management and the consequences that this could have on your reputation as an employer?
The best place to start is having an informal chat with us about where you are, where your opportunities might be, and where you need to make serious improvements. You may even be interested in our full HR Assessment.