Every single department in a company now has to trim as many expenses as possible in order to increase organization overall value. HR departments are not an exception. Curbing expenses with human resources is normally a difficulty because this is usually not something that was needed in the past. Many CEOs have no idea what to do.
The following methods presented by Productiv Inc should help out most CEOs that are having troubles reducing costs for HR departments.
Consider A New Healthcare Provider
Besides the fact that you can look at plan costs when you shop around, you can also analyze different ways to reduce the program expense in the first place or employee premiums. As an example, when direct primary care is combined with a higher deductible plan you can save up to 15% as opposed to the regular health insurance policy most companies offer. It is also a really good idea to see who is covered and see if some plans like for vision or for dental procedures could be eliminated. However, you only do that if the staff would not be upset about it.
Risk Reduction Strategy Implementation
Office theft and employee accidents cost businesses around $85 billion every single year. This means that when you reduce risks through various risk reduction strategies you take one step forward towards not having to deal with expensive unexpected events.
Consider Workplace Options
The modern work environment evolved with various different situations in which people want to work from other places, not from the office. This is why workplace options that are less traditional can be really popular among staff members and would help the firm to save money. It is possible to go for the 35 hour work week that is highly popular in Asia and Europe and many other options can be considered. Many CEOs simply make layoffs. Changing workplace environment may help avoid that.
Salary Level Revisits
Any salary cut will not be appreciated by employees and accepting something like this is difficult. However, when you review how much you pay and then compare it with the industry you can end up determining an affordable and reasonable raise amount. In many situations we see raises that are simply too large. The experienced human resource managers are going to always track compensations offered in the industry in order to be sure that salaries do not reach levels that are simply too high. Also, red circle policies can be considered. These are salary freezes that are activated if there is an employee that is paid more than what is seen in the market as an average.
Last but not least, statistics show that 60% of organizations are now using external service providers for some HR functions. This is because outsourcing can bring in really high saves and the in-house HR department can get more free time to get more good work done. Staff members are going to be more relaxed and the work that remains to be done will most likely be done a lot better. Outsourcing brings in more advantages than what people think at the moment.