5 Ways To Save Money On Your HR Budget In 2020View all posts
It’s September, which means that 2020 is on the horizon, and it’s time to reassess HR budgets. For the next few weeks on the WorkBright blog, we wanted to shed some light on how to be a more financially savvy HR department. We’ll talk about topics like advocating for your HR budget, where you should be spending your money in 2020, and so much more. To start, we wanted to shed some light on five ways to save money on your HR budget in 2020. These five tactics will help you reduce costs or be more efficient, so the money you are spending has a more significant impact.
1) Double Down On Recruiting Strategies That Work
If you want to save money in 2020, one of the first things you can do is focus on recruiting strategies that work. It’s so easy to get caught up in how things have always been done instead of honing your strategy. If you want your HR and recruiting budget to go further this year, you must focus on what’s working.
Work through each of the ways you sourced candidates this past year. What gave you the most return on investment? Which strategies didn’t pan out? Which strategies do you need more time to implement?
- Focus the biggest part of your recruiting budget on strategies that work.
- Devote some money to recruiting strategies that need more time and new ideas.
- Get rid of recruiting strategies that were a waste of your time or netted terrible results.
How To Assess Strategies That Work
When assessing what strategies worked versus which ones didn’t think about the following:
- Which strategies helped you recruit more team members in the shortest amount of time?
- Are there any strategies that required a significant amount of money, but didn’t get satisfactory results? Would you need to continue pouring capital into that, or have you paid most of the money you need to spend already?
- When you connect recruiting strategies to employee tenure, do any strategies produce employees who turnover quickly?
Overall, when you are doubling down on helpful recruiting strategies, think about it from a myriad of perspectives. Some strategies may seem more or less like a failure if you are only looking at specific metrics. For example, if you implemented a new software this year, the cost would likely be high, and the return on investment might not be there yet. If you are looking at the raw numbers, you might label that software a failure. Instead, look at the bigger picture. Fully implementing a new software takes time, but you likely won’t need to invest as much the second year so the software would be worth keeping around to monitor for at least another year.
2) Focus On Building An Excellent Employee Experience And Reducing Turnover
Employee turnover is a huge cost to any company. Not only are you wasting money by hiring the same roles over and over, but you are also:
- Losing productivity
- Straining the entire company when employees have to do more with less
- Causing other employees to disengage and lose interest because they see turnover rates
When employee turnover increases, onboarding costs skyrocket, you aren’t able to have the skilled workforce you desire, and everyone suffers.
By spending a good portion of your HR budget on employee retention strategies, you can make that money back through increased productivity and office morale.
3) Switch To A Digital Onboarding Platform
Onboarding is time-consuming, and it can also waste hundreds if not thousands in paper and ink each year. You already know that you don’t need to print your HR files, and 2020 is a great time to start keeping digital onboarding files.
If you’ve been following the WorkBright blog these past few weeks, you know that we’ve been chatting about E-Verify and form I-9. We talked about some of the violations and penalties associated with Form I-9, which is why switching to a digital onboarding platform like WorkBright is so essential.
Protect your business and keep all your necessary files up to date by using a digital platform. With a digital onboarding platform, your data is always secure and accessible when you need it. No more rows and rows of unorganized filing cabinets. Instead, you can rest easy know you will be able to recall any information about your employees when you need to.
4) Revisit Employee Benefits And Costs
Another way to save money on your HR budget is by revisiting employee benefits. Your goal shouldn’t be to strip benefits. Instead, your goal is to get benefits costs down and focus on the benefits employees use and love.
For example, are you getting the best health insurance rate? Could you be paying less for the same coverage, or is there a plan that costs less with more benefits? If you’ve had the same health insurance plan for a while, it may be time to renegotiate a deal.
Another idea for saving money or reallocating money is seeing which benefits get used and which ones don’t. There is no need to waste money on benefits no one uses. Instead, replace that benefit with something that your employees would use and gain value from.
5) Automate Tasks To Free Up Time
Last but not least, automate some of your HR tasks. Automating tasks allows you to reroute HR time so you can begin to focus on innovative tasks.
For example, many businesses are starting to automate the interview scheduling process. Automating interview scheduling frees up recruiter time to focus on bigger picture tasks and improving candidate experience. Scheduling interviews used to take hours due to the back and forth between candidate and recruiter.
Now, recruiters can set their availability up online, and candidates can pick the time that works best for them. Since recruiters aren’t in the weeds scheduling call after call, they can work on building relationships instead.
Finding ways to automate processes that once took hours of productivity away from your employees is a great way to save money. Somethings we do are worth the effort and hours we spend on them, but there are so many tasks that no longer need that level of dedication.
If you are looking to create a more effective HR budget in 2020, these ideas will help you do just that. The current conversation in HR is geared toward return on investment: how can we make sure our spending nets results? By working through each of these ideas, you’ll see a better ROI in your recruitment budget for 2020.
Join us next week as we talk about how to advocate for your HR budget when communicating with your boss or CEO.