Our management give project on cost saving in all dept. I am working in personnel /hr dept ,please guide me what source i can save the money in various way.
From India, Thane
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1From India, Thane
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Automation of many routine functions such as payroll and attendance can streamline processes. Cutting the use of stationery by transitioning to digital methods can help in reducing waste and promoting a more eco-friendly work environment. Going green not only saves stationery, stamps, postage, and printouts but also reduces the environmental impact of excessive paper usage.
One effective way to reduce costs in HR is by closely monitoring employee exits and addressing the reasons behind them. By providing a fair and conducive work environment, companies can minimize turnover and the associated costs of hiring and training new employees.
Beyond just cost-cutting measures, HR should focus on creating value within the organization. This can be achieved through initiatives that enhance employee satisfaction, improve productivity, and contribute to the overall success of the business.
From India, Pune
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One effective way to reduce costs in HR is by closely monitoring employee exits and addressing the reasons behind them. By providing a fair and conducive work environment, companies can minimize turnover and the associated costs of hiring and training new employees.
Beyond just cost-cutting measures, HR should focus on creating value within the organization. This can be achieved through initiatives that enhance employee satisfaction, improve productivity, and contribute to the overall success of the business.
From India, Pune
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To begin with the cost-saving project for the HR department, as a first stage, you need to know the current or historical spending areas by the HR department. One of the areas being Recruitment. So, just to take the recruitment factor, answer the below questions.
Stage 1: Data Collection Total Recruitment last year or couple of years
Cost for recruitment (cost paid to agencies, referral bonus)
Sources for recruitment (consultancies, referral, campus hire, advertising) Also, termination within 3 months, reasons for it.
Collect as many details as possible on recruitment.
Stage 2: Now, look for opportunities If you pay more to consultancies, check if those positions can be filled through employee referrals. Check whether you have a clear process on recruitment (effective interview techniques, effective screening techniques, and the skills to identify the sustainability of employees).
Stage 3: Implement and evaluate Once you find the areas of improvement, please implement. Rather than saving costs for the company directly, HR can save a lot by designing clear HR policies and procedures.
Do you have a policy on leave encashment for employees? Any limit on that?
How about reimbursements and expenses claim policies? Are they cost-effective now?
Please understand your HR department and functions completely and the costs associated with it.
Sometimes, more than cost-saving, HR can play a vital role in improving quality and efficiency.
Good luck with your project.
From India, Bengaluru
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Stage 1: Data Collection Total Recruitment last year or couple of years
Cost for recruitment (cost paid to agencies, referral bonus)
Sources for recruitment (consultancies, referral, campus hire, advertising) Also, termination within 3 months, reasons for it.
Collect as many details as possible on recruitment.
Stage 2: Now, look for opportunities If you pay more to consultancies, check if those positions can be filled through employee referrals. Check whether you have a clear process on recruitment (effective interview techniques, effective screening techniques, and the skills to identify the sustainability of employees).
Stage 3: Implement and evaluate Once you find the areas of improvement, please implement. Rather than saving costs for the company directly, HR can save a lot by designing clear HR policies and procedures.
Do you have a policy on leave encashment for employees? Any limit on that?
How about reimbursements and expenses claim policies? Are they cost-effective now?
Please understand your HR department and functions completely and the costs associated with it.
Sometimes, more than cost-saving, HR can play a vital role in improving quality and efficiency.
Good luck with your project.
From India, Bengaluru
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Nicely posted by Nathrao...
Yes, automation directly reduces the cost of the HR department. Consider the following areas where more people are typically required to work in HR:
1. Hiring
2. Employee Database Management
3. Attendance & Leave Management
4. Payroll & Statutory
Today, there are many tools available in various sizes and costs. Choose the right product for your needs and see results within 3 to 6 months. For more information, please click here: https://tinyurl.com/ycdkgojv
Regards,
From India, Madras
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Yes, automation directly reduces the cost of the HR department. Consider the following areas where more people are typically required to work in HR:
1. Hiring
2. Employee Database Management
3. Attendance & Leave Management
4. Payroll & Statutory
Today, there are many tools available in various sizes and costs. Choose the right product for your needs and see results within 3 to 6 months. For more information, please click here: https://tinyurl.com/ycdkgojv
Regards,
From India, Madras
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After proper data collection and analysis, you may consider the following areas:
1. Recruitment cost
2. Training and development cost
3. Wages and salary implications of manpower reduction
4. Administrative cost reduction or controls
5. Please send more details about your functions to generate additional ideas.
From India, Delhi
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1. Recruitment cost
2. Training and development cost
3. Wages and salary implications of manpower reduction
4. Administrative cost reduction or controls
5. Please send more details about your functions to generate additional ideas.
From India, Delhi
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Let's understand cost can occur in more than just in the form of money/expenditure. Time spent on activities that could be done in shorter time is a cost. The opportunity missed is a cost. The dissatisfaction caused in an employee is also a cost in a way.
Let's take a simple function - Recruitment. Big firms could be spending anywhere between thousands to Lakhs in paying the consultants. However, a lot of hot resumes can be received from the organization's own careers section. But that's rather an underrated part of the website.
The cost of recruitment can also be significantly decreased by using less expensive ways of employee engagement and satisfaction. Every new recruit brings with it the cost of onboarding, the cost of time just to learn the system and processes, and much more.
This is just a perspective, which while diving deep into can help in significant cost savings.
From India, Jaipur
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Let's take a simple function - Recruitment. Big firms could be spending anywhere between thousands to Lakhs in paying the consultants. However, a lot of hot resumes can be received from the organization's own careers section. But that's rather an underrated part of the website.
The cost of recruitment can also be significantly decreased by using less expensive ways of employee engagement and satisfaction. Every new recruit brings with it the cost of onboarding, the cost of time just to learn the system and processes, and much more.
This is just a perspective, which while diving deep into can help in significant cost savings.
From India, Jaipur
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For effective cost-saving tips, check out this video: https://www.youtube.com/watch?v=xA7y...&t=17s
As well as this article on how to save on HR expenses by up to 90%: https://optimum-direct.com/blogs/201...expenses-by-90
From Philippines, undefined
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As well as this article on how to save on HR expenses by up to 90%: https://optimum-direct.com/blogs/201...expenses-by-90
From Philippines, undefined
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Hi,
Here is a good way of cost-saving Employee Self-Service|Employee Portal|Leave Management Software|KServeHRMS.
Regards,
From India, Madras
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Here is a good way of cost-saving Employee Self-Service|Employee Portal|Leave Management Software|KServeHRMS.
Regards,
From India, Madras
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Cost saving is not a variable of a department, e.g., HR, Finance, Production, but it is the role you have to play for cost saving in your domain. The cost saving for the HR department may not be as tangible as in the case of the production department. However, every activity of your department, be it recruitment, performance evaluation, or employee development, can result in significant cost savings, albeit intangible. The cost savings due to improvements in productivity are a result of the efforts made by the HR department.
From India, Delhi
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From India, Delhi
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Dear Friend,
I have gone through the various comments recorded by our professional colleagues. They are talking about various ideas for cost-cutting, and I understand the significance of most of the ideas and respect the views expressed therein. However, I have different thoughts.
1) Cost-cutting per se is not possible for organizations where expenditure is at a bare minimum level, and they spend money for legal compliance.
2) The skill lies in achieving better quality at a minimum cost, whether it is recruitment cost or training and development cost.
3) Automation is good but involves a lot of initial investment, and an organization that is seeking cost-cutting measures may not be open to the idea of further investment.
4) It is always observed that whenever a company introduces VRS or similar measures, the organization loses skilled or experienced workforce.
5) Therefore, we must apply professional maturity and discuss with superiors about the pros and cons of such decisions.
6) If the organization wants to proceed with cost-cutting, then we need to make decisions applying professional maturity in consultation with the director so that they are also aware that cost-cutting may result in a loss of quality.
7) I strongly feel that thoughts of cost-cutting have arisen because superiors might have noticed wasteful expenditures in certain areas, and it would be beneficial to identify those wasteful expenditures and address them. HR can facilitate that.
Thanks & Regards
From India, Mumbai
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I have gone through the various comments recorded by our professional colleagues. They are talking about various ideas for cost-cutting, and I understand the significance of most of the ideas and respect the views expressed therein. However, I have different thoughts.
1) Cost-cutting per se is not possible for organizations where expenditure is at a bare minimum level, and they spend money for legal compliance.
2) The skill lies in achieving better quality at a minimum cost, whether it is recruitment cost or training and development cost.
3) Automation is good but involves a lot of initial investment, and an organization that is seeking cost-cutting measures may not be open to the idea of further investment.
4) It is always observed that whenever a company introduces VRS or similar measures, the organization loses skilled or experienced workforce.
5) Therefore, we must apply professional maturity and discuss with superiors about the pros and cons of such decisions.
6) If the organization wants to proceed with cost-cutting, then we need to make decisions applying professional maturity in consultation with the director so that they are also aware that cost-cutting may result in a loss of quality.
7) I strongly feel that thoughts of cost-cutting have arisen because superiors might have noticed wasteful expenditures in certain areas, and it would be beneficial to identify those wasteful expenditures and address them. HR can facilitate that.
Thanks & Regards
From India, Mumbai
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