How to reduce the HR functions cost

How to reduce the HR functions cost

In a challenging economic scenario, it is imperative to reduce costs while increasing employee productivity. To achieve these basic goals HR must revisit its policies make changes whenever and wherever possible. However, before examining other departments and functions they must try and identify the ways and means as for how to reduce the HR functions cost?
HR professionals can strategies in multiple ways to cut HR costs before it becomes an issue. The same can be attained without sacrificing employee satisfaction or threatening any employee retention. Below mentioned are some successful strategies to cut HR functions cost and while improving employee productivity.
Risk Management:
Minimize risk by human resources outsourcing. There are several firms those who perform outsourced work.  The ever-changing employment and labor laws can make things difficult for employers to remain up-to-date on regulations that affect the workplace. Outsourcing firms employ HR professionals whose purpose is to stay abreast of numerous central and state employment laws. HR firms maintain and audit company policies and practices to ensure the organization and its employee's best interests remain protected.
Hire & Retain Top performers:
High employee turnover can result in considerable costs and loss of productivity. This also saves cost involved in training. Statistics reveal an employer loses about six days of productivity due to attrition of a tenured employee. To avoid high turnover without increasing costs significantly, conduct periodical evaluations of every staff performing HR activity.
Improve Training And Mentoring:
Appropriate training and mentoring is the key to reducing costs in HR functions. Appointing a supervisor with poor knowledge can cause internal conflicts within the HR team and within the organization. HR supervisors need to train its staff so that they understand every finer nuance of the organization and organizational policies right from hiring to training and mentoring.
Process Automation:
Process automation is one of the best ways to cut costs. Automating manual processes, like providing an employee portal can help streamline processes related to employee requests. Digitizing documents such as employee handbooks can eliminate copying costs and make distribution easier. Such modern human resources strategies can truly help.
Process Outsourcing:

Several organizations have moved some in-house HR functions to an external service provider. This helps in cutting costs of HR functions drastically. Most of the HR related and operational expenses are saved by outsourcing few HR functions. 

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10 May 2019 at 02:01 delete

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