5 Easy Tips for Controlling HR Costs
HR costs are one of the biggest expenditures for any business, and over time, they can really add up. The main goal of any company should be to control expenses in each department. This can be achieved by utilizing tactics that are designed to cut costs using a proactive approach. Many businesses find areas within the HR department that have room for improvement and it is good place to start. It is about working to promote effective programing that can be done without interfering with actual employee benefits.
1. Going Paperless
Printing out payroll is an outdated practice that costs businesses thousands of dollars each year in paper and extra staffing. Online systems can pay employees, produce online check stubs, record timesheets, develop reports, and send out W-2s all electronically. Employees are able to access their information quickly and can view all pertinent information online. Going paperless cuts staff work time and is the most efficient way to deal with payroll services.
2. Health Care Costs
Employee health care plans are difficult to deal with and expensive. The first step is to compare plans and know what the employees need. Many health care plans are based on the amount of coverage and deductibles. Discuss possible cost cutting solutions with different agencies and always shop around. Make sure you understand the new ACA requirements.
3. A Safe Workplace
Creating a safe work environment has long reaching benefits. It has proven to improve morale amongst employees, saves the company money, and increases productivity. Establishing a health management and safety plan can significantly reduce illness and injury costs. Businesses can expect to see less absenteeism, injuries, and injury cost. Health and safety solutions can be tailored to meet the needs of the business.
4. Examine Programs
Every company wants to have happy employees, and offering amenities has proven to be an effective way to keep quality personnel. The key here is to offer employees what they need and to examine the current programs. If they are not having the desired effect, or are costing too much, then alternative plans can be established.
5. Salary Options
Salaries can make or break a business. They need to be fair but should also line up with the rest of the market. Human resource managers are looking for ways to control salaries while providing proper compensation. Hiring freezes are a common money saver along with the elimination of pay raises. When the company is doing well, the employees should also see a benefit. The key is to have management and the staff working as a team for the betterment of all.