Big and small companies across the world are cutting their HR budgets by 10% in most cases. Why is this a big deal?
The HR budget funds the one department responsible for taking care of employees, their needs as well as their concerns. Cutting the HR budget causes employee morale to suffer along with productivity. But how can you nip this in the bud, and what can be done about it?
The first step is to recognize the problem. Forecasting sales numbers and analyzing future growth is important, but it is equally important to keep in touch with your employees and where they see your company going. With the hassle of everyday business, it can be difficult to keep things in order. However, your employees are the key to true success. Remember, they handle your customers and your customers are the only ones keeping you in business.
On the other side of the coin is your budget. Manpower planning and forecasting are two important methods for reducing your HR budget without reducing its functionality. Another excellent way to keep costs low, without sacrificing employee morale, is by automating your department.
For example, Bill Johnson is the CEO of a national financial services company, and recently confessed that his industry’s tightly regulated HR budget limits the department tremendously. However, by investing in HR process automation for Employee Absence and Payroll his company has grown from 300 employees across 25 locations, to 800 employees across 60 locations without any increase in budget. Manpower planning played a role in his company’s growth, but automating where possible enabled it to expand by leaps and bounds.
Technology has the potential to revolutionize your budget and keep your employees satisfied with their job, so why not utilize it? By investing in software for your HR department you will keep you budget balanced and your employees productive.