Tough Times Ahead?
Well maybe. But whatever the outlook there is never any harm in thinking about some of the easiest ways to reduce costs. And as the amount spent on pay and benefits is the biggest cost in most organisations, a focus on 'paybill' makes sense. Whatever your reason to be looking, this quick guide should help you look in the right areas.
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Recruitment costs money
Agency or advertising fees, interviewing time, training time, management time - all can be cut. But the biggest savings are to be made in reducing labour turnover and improving the quality of recruitment decisions. Above average employees are between 20% and 40% more productive than average employees. So develop the recruitment and selection processes that will help you attract and retain above average employees. Use selection tools that help you sort the wheat from the chaff.
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HR costs money
Wasted or misaligned HR effort costs money. On-line HR administration systems reduce admin costs by 50%. Outsourcing your HR support means you can get the right blend of HR as and when you need it. Why pay the cost of an overqualified HR professional spending most of their time on lower level tasks?
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Unclear goals cost money
The best performing teams have clear goals. Make sure your staff know what they are meant to be doing. Objective setting, measuring progress and giving feedback are all essential. And easy ? particularly if you employ one of the great on-line systems now on the market.
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Absence costs money
Is your absence rate above 3%? If yes, it is probably too high. Making inroads into absence rates is not difficult - and most of your staff will thank you for doing it.
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Benefits cost money
We are not saying scrap benefits. Obviously some offer more value than others. The simplest action you can take is to keep them under review. Make sure you rebroke your insured benefits at least every two years. If you haven't done it, look at what salary sacrifice can do for you. And at long last flexible benefit schemes are within reach of smaller employers.
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Pay systems cost money
You can pay too much or too little. Both extremes will cost you money. It's worth checking how you compare in the market. You can also misalign the elements of your paybill so you don't get as much value as you should. Maybe your bonus scheme is misaligned or your overtime policy encourages inefficiency? You can change what you do.
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Training costs money
Do misunderstand us. Training is essential. But external training is an expensive way of passing on skills and knowledge that probably already exist in the organisation. Make training a win -win-win. More involving, better delivered and cheaper.
What's it worth?
Tot up your opportunities in these seven areas and we are talking at least 10% and more likely around 25% of your payroll costs. It will make for a step change in your profitability or efficiency.
Can we help?
Of course. It's what we do. Choosing to work with HR Advantage gives you:
· Access to the latest on-line HR systems on a pay as you go basis.
· Full HR outsourcing services - exactly the HR support you need as and when you need it.
· Recruitment process management that reduces recruitment costs and delivers better outcomes.
· Expertise in pay and benefits design, absence management and performance management.
· Trainers who deliver - and can help you deliver for yourself.
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