Table of Contents

• Introduction
• Embrace Technology & Automation
• Streamline Recruitment & Retention for Fewer HR Expenses
• Remote Work is the New Normal
• Use HR Analytics to Make Smarter Decisions
• Partner with BlueStone Services for Peace of Mind
• Key Takeaways

If your Human Resources department is like most, it walks a tightrope. On one side is the constant pressure to keep costs in check. On the other, there’s the undeniable truth behind all HR departments – your people are your most valuable asset. A disengaged, under-supported workforce leads to low morale and high turnover, which are bad enough. What’s worse is what it could do to businesses – it may put them out of business altogether.

So, how do you strike a perfect balance? How do you cut HR expenses without compromising the quality of your HR operations — or worse, alienating your employees? From using technology correctly to rethinking your recruitment strategies, we’ve got you covered. Because when it comes to HR, smart savings don’t have to mean sacrificing quality.

Embrace Technology & Automation

Technology gives businesses lots of tools to improve and simplify HR operations. Your HR team probably has a lot of boring, repetitive tasks that they would rather not do. They spend a lot of time onboarding new hires, processing payroll, managing benefits enrollment, etc. These are prime candidates for automation. 

Everybody someday gets to be a new hire, and most of the process hasn’t really changed. Along with learning everybody’s name and where the bathrooms are, the first task a new employee does is climb and conquer a mountain of paperwork. 

Technology can solve this with a thoughtfully designed online portal so they can complete their onboarding digitally. This lets them sign documents and select benefits and everything else. Instead of assigning one of your valuable teammates to walk a new hire through the paperwork they have to sign, they can stay focused on work that directly benefits the business.

The benefits of automation go beyond just saving time and money. Automated systems reduce the risk of human error. This means greater accuracy in payroll, benefits, and other critical processes. These automations also give good data and insights that can inform decision-making and help your business continuously improve.

It’s a good start, but even the best automation isn’t going to be a magic bullet. If you’ve been in business long enough you already know that there’s no such thing as a “magic bullet” anyway. But choosing the right tools is still an important part, as are proper implementation and training. But with careful planning and the right approach, automation can really move the needle in your HR department, allowing you to do more with less and focus on what matters.

Streamline Recruitment & Retention for Fewer HR Expenses

Finding and keeping great employees is key to any successful business. However traditional recruiting methods can be expensive. Luckily, there are plenty of cost-effective ways to attract top talent.

Employee referrals are a great place to start. Your current employees are your best brand ambassadors and can recommend qualified candidates from their own networks. Plus, it’s a win-win: you get a great new hire, and your employee gets a referral bonus (you do offer referral bonuses, right?)!

Don’t overlook social media. You can use LinkedIn to reach a wider audience and show off your company culture. There are other social media platforms but LinkedIn is your best bet for anything business-related. That’s often the first place people go to find work and learn about businesses. 

And don’t forget about job boards. Niche sites cater to specific industries or professions. They will help you connect with candidates who are a good fit for your open roles.

But recruiting is only half the battle. Retaining your employees is just as important – maybe even more important. We don’t need to tell you that turnover is expensive. We’re talking about the costs of recruiting, onboarding, and training new hires. Not to mention the lost productivity and institutional knowledge when someone walks out the door.

So, how do you keep your employees happy and engaged? It’s not rocket science. Invest in their development. Offer training programs, mentorship opportunities, clear career paths & those referral bonuses we mentioned. 

Create a positive work environment where people feel valued and appreciated. A little investment in your people can go a long way. It reduces turnover and saves you a boatload of money.

Remote Work is the New Normal

The pandemic was a lot to deal with all at once, for people and for businesses alike. One of the things people realized during the lockdowns was that a lot of the work we do in our offices could just as easily be done at home. For better or worse, the WFH culture is real and it’s here to stay. 

But what about the impact on HR costs? It’s actually pretty significant. Think about it: less office space needed, fewer sick days taken, and potentially even a boost in productivity. Those are some serious savings right there.

Of course, using a flexible work arrangement and managing a flexible work arrangement are two different things. Both sides require trust, clear communication, and the right tools. But most things worth doing require a little effort. If you want it to work, have clear expectations and goals, provide regular feedback, & create a strong sense of community.

The payoff to this can be huge. Happy, engaged employees who feel valued and trusted are more likely to stick around, which, as we’ve already discussed, is a major cost-saver in itself. Plus, offering flexibility can be a powerful recruiting tool, attracting top talent who prioritize work-life balance.

So, if you’re not already exploring flexible work options (and you probably are), now’s the time. Everybody wins.

Use HR Analytics to Make Smarter Decisions

You wouldn’t run a marketing campaign without tracking its results, right? So why should HR be any different? Data is a goldmine of insights, and in the HR world, it’s called “HR analytics.” It’s really just about using data to make smarter decisions.

HR analytics can help you identify areas where you might be overspending. Maybe the recruitment strategy you use now costs a fortune and the data shows it’s not very effective (ouch). Or maybe you’re being too generous with your employee benefits package. You could probably make some adjustments and still keep your employees happy. You don’t know what you don’t know and analytics can get you where you need to be.

It’s not just about cutting costs, though if it were that would be enough. HR analytics also help you measure the effectiveness of your HR programs and initiatives. Are your well thought-out training programs actually improving employee performance? Is your wellness program helping your employees stay healthy, thereby reducing absenteeism? Data can give you the answers you need to make informed decisions.

You’re probably thinking: “This all sounds great, but we’re a small business. We don’t have the resources for fancy analytics software.” That’s no excuse. You don’t need a huge budget to get started. Start small. Track basic metrics like turnover rates, time-to-hire, and employee engagement scores. There are plenty of user-friendly tools available that can help you collect and analyze this data. All you really need is a spreadsheet. 

Data is your friend. It helps you make your whole HR department better and more effective, which directly translates to happier employees, which then leads right to big money savings. Start tracking your data and you might be surprised at what you discover.

Partner with BlueStone Services for Peace of Mind

Cutting HR costs doesn’t have to mean sacrificing the quality of your HR operations — or your employees’ happiness. Embrace technology, outsource strategically, focus on recruitment and retention, offer flexible work arrangements, and use data to guide your decisions. These steps will help you create a leaner, better HR department that still gives your employees top-notch service.

Invest in your people, not just because it’s a nice thing to do but because it’s just good business. Take these tips to heart and start implementing them today. Your bottom line will thank you.

If you’re looking for a partner to help you with everything we mentioned and a lot more we don’t have room to mention, then you’ve come to the right place. BlueStone Services offers comprehensive outsourced HR solutions. Streamline your operations, reduce costs, and focus on growing your business. Get in touch with us today to learn more about how we can help you succeed.

 

Key Takeaways

• Automation is Your Friend: Use technology to minimize repetitive HR tasks, freeing up your team for strategic work and improving accuracy.
• Smart Recruiting & Retention: Employee referrals, social media, and targeted job boards can attract top talent. Invest in employee development and engagement to reduce turnover.
• Embrace Flexibility: Explore remote work and flexible schedules to save on real estate, reduce absenteeism, and boost productivity.
• Data-Driven Decisions: Utilize HR analytics to identify cost-saving opportunities, measure the effectiveness of your programs, and make informed decisions.
• Don’t Go It Alone: Partner with experts like BlueStone Services to access comprehensive outsourced HR solutions that can help you optimize your operations and achieve your business goals.