New Business Options for an Efficient HR Budget.. Start-up businesses and small companies must squeeze every penny out of what is generally a very tight budget, and the HR department is an area where much potential for waste exists if steps aren’t taken to rein in costs. The following options may help a business to trim the fat from the human resources budget, and may also ensure that the first few years of a company’s existence aren’t full of excess spending and bloated budgets – of course were assuming that you not outsourcing your HR. 1. Streamline the HR Department with Technology Technology guides many decisions in today’s business departments. HR is no exception where a number of programs exist to assist with streamlining of various projects. Automation software helps greatly as does management software and purchases of these types of programs are recommended. Areas of HR that may benefit from automation and software include administrative tasks, time-off management, benefits tracking, recruitment statuses, performance review tracking, and automated training programs. 2. Create Standardised Hiring Practices A start-up or new company often flies by the seat of its pants for a few years, and this may lead to excess expenditures when there’s a rush to get everyone on-board and to fill open positions. Before significant hiring begins, a standardised process for such projects requires attention. A standardised hiring plan needs to go further than the simple considerations of whether a particular individual offers the right level of experience and training history. Hiring practices also need to ask the difficult questions of whether a particular worker will be an asset to the general attitude and focus of the company. HR Policy 3. Consider Exercise Programs and Social Gatherings Although including exercise programs and other active events may seem like an extra expenditure, healthier employees take less time off from work and offer higher rates of productivity. Considering an exercise program and a reward structure for successful completion of the program may help increase the efficiency of the entire company and reduce overall costs. If resources don’t exist for an in-house exercise program, nationwide gym chains often provide businesses and their employees a significantly reduced rate when employees sign up for a membership. 4. Lower Company Contributions to Pensions Although lowering contributions to a pension plan might be fairly difficult for an established company, a business that just opened its doors has the perfect opportunity to set a conservative rate for company contributions to a pension plan and significant funds may be saved through such decisions. Future increases in contributions may be possible once the company is more established, but saving money on this type of HR expense at the outset may prove beneficial. 5. Create Tight Policy on Absences New businesses occasionally exhibit signs of disorganisation when it comes to absences, vacation, and leave, and this may reduce the overall efficiency of a company’s workers and will eventually cause problems with future profit levels. Although employees may not appreciate a close eye being kept on their time away from the company, such controls are necessary to safeguarding the company’s potential for future earnings. Absent employees don’t complete assignments and the company doesn’t earn money from nonattendance. 6. Reduce Health Plan Coverage Health care expenditures for the average company are rather massive, and the costs keep going up each year. Companies that have long provided their employees with significant benefits packages have been paring down those offerings each year in response to the dramatically higher costs of providing employer-sponsored health care. The best way to reduce spending on health plan coverage is to eliminate the dental and vision plans. These extra plans are the least-used options on many company health care plans, and so their overall cost to the company is higher because the options are not fully utilised. These six methods for trimming the HR budget will allow a start-up to get rolling with an efficient budget. There is always room for growth and change within the HR budget when the company matures and profits are secured.
Posted on: Sun, 11 Aug 2013 14:41:04 +0000
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