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Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money, 2nd Edition by Institute of Management and Administration

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Chapter 2

Human Resource Department Costs

COST-CONTROL STRATEGIES

Given the tough economic times we are forced to struggle with, resourceful human resources (HR) managers are asking staff to take on more responsibility, making do with less, increasing efficiency, and relying on technology to keep departmental costs under control.

IOMA’s annual HR department management and cost-control study is a useful guideline for HR managers who are looking for effective ways to control costs in their departments. As always, IOMA cautions against relying too heavily on these benchmarks, as each organization is unique in terms of culture, workforce demographics, and economic demands. The following are highlights from the study, along with respondents’ tips and tactics.

What’s Working; What’s Emerging

Asking HR staff to take on more responsibility (47.1% of all respondents) was the top cost-control strategy reported in the study. HR departments also continue to streamline their processes and procedures (41.2%), often in conjunction with a move to automated HR functions, the third most effective strategy (37.9% of respondents).

Size Differentials

Another sign of the times is the remarkable consistency among size groups by number of employees (see Exhibit 2.1).

Exhibit 2.1 Most Successful HR Department Cost-Control Categories, by Number of Employees
image

Relying on HR staff to take more responsibility ...

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