The economic downturn and credit crunch has taken a merciless toll on the workforce in many organizations. The number of unemployed people has kept on increasing and even the companies that are financially healthy are hunkering down. 

Before making the harsh decision on cutting down benefits or firing people altogether, many companies take into consideration the various cost-cutting solutions such as frozen salary and hiring, bringing down the number of paid leaves, and consolidating workplaces. Obviously, these are some top cost-cutting solutions that come to every employer’s mind, but not the only ones. 

Here comes the opportunity for the HR professionals to shine- by creating an expense management system and proving that they too are capable of being the top professionals of the company. 

Below given are top tactics that the HR department can utilize to show everyone how savvy and innovative they are-

Double the bet on successful hiring strategy

If the HRs want to handle their expense management, one of the best things they can do is doubling down on recruiting strategies that have proven to be successful in the past. It is so easy to get fixated on following things that have been done in the past rather than polishing your strategies. 

If the HRs want to keep their employee expense management in check, it is imperative that they focus on strategies that have been working. This can be done by doing a detailed study of various factors like what were the ways in which they sourced their candidates the past year. 

Which process gave the company the highest return? Which techniques did not work out? Which strategies took time to be implemented? Thus,

Focus the majority of your budget on the techniques that did pan out.

Eliminate the strategies that netted terrible outcomes or took a lot of time to be implemented. 

Devote a portion of the budget to hone the strategies that did work out but took a while to show results. 

There are things that the Hr professionals should keep in mind while assessing the strategies that worked out and the ones that didn’t, like-

Which strategies helped to recruit skilled candidates in a short period of time?

When you link hiring strategies to retention, do any strategies come up that help in lowering the turnover?

Filter out the strategies that were expensive and did not give satisfactory results. Take a decision of whether they are worth it or should be eliminated altogether?

In short, when the HR professionals are jotting down the helpful strategies, they should think about the possibilities from various perspectives. Many strategies will look like a failure if only particular metrics are being taken into consideration. 

For instance, if a company has recently integrated HR software to make every process of the recruiters automated, it may take a while to be profitable for the company. If the employers look at the raw number, they will consider it as a failure. But instead of doing this, they should look at the big picture. Integrating software fully takes time, but it is a one-time investment that will surely yield profits within no time. 

Automate tasks to increase efficiency

The best way to handle expense management is by automating the tasks that take up the valuable time of the HR professionals. For example, with the fast-evolving technology, many companies now use HR software to automate many processes, right from recruitment to onboarding. 

A good HR software helps to make the interview process seamless by automating the schedule of the interview, thereby freeing up the recruiters’ time to focus on other important tasks like strategizing ways for the company’s growth. Moreover, online onboarding helps in saving a tonne of the company’s money as the traditional method is time-consuming and requires a lot of financial flow. 

Online onboarding also helps to access the data anywhere at any time as all of it is securely stored securely in a cloud. This also helps in avoiding the wastage of ink and paper, thereby protecting the environment. 

Focus on retaining employees

It is not a secret that employee turnovers cost the company a lot. Not only is the company wasting money by continuously hiring new employees for the same role, but also losing productivity and their credibility. If the employee turnover increases, hiring and onboarding processes start costing the company a bomb. 

Additionally, the employers are not able to hire and retain the workforce they desire, and in the end, everyone suffers. Therefore, the HRs should spend a good portion of their budget on devising strategies to retain skilled employees, and this will indirectly help the company to make money through enhanced morale and productivity of the employees. 

Takeaway

If the HR of your company is looking for ways to save money on their expense budget, following the above-mentioned pointers will help them to attain just that. I hope the blog helps. 

Thanks for reading!

Good luck.