Human resources (HR) is a crucial component of any company or organization in the Philippines, ensuring that the right people are hired and that current employees remain engaged, productive, and satisfied in their roles. But as with any other part of a business, cost-cutting measures sometimes need to be implemented to balance out company expenses. Now, reducing costs in your HR department doesn’t mean crippling its operations entirely; rather, it can also just mean seeking more cost-efficient ways to run HR operations, such as improving its payroll management system, leveraging technology for recruitment, and offering training programs that enhance employee skills while minimizing expenses.
Here are some tips that can help reduce costs in your HR department.
1. Be Sure You’re Hiring the Right People
One of the main roles of HR is to hire new people for your company. However, reducing costs in this area doesn’t necessarily mean cutting down on recruitment activities or hiring low-quality candidates. Quite the contrary. Rather, it’s a call for your HR department to be more stringent in its hiring process to ensure they’re really accepting the right candidates who are a great fit with your company. After all, onboarding and training can be costly for the company. If you end up with employees who aren't actually qualified and will need to be replaced after just a short period of time, then it leads to more expenses down the road as you would have to rehire new people and train them all over again.
There are various ways to do this, each depending on the industry you’re operating in. Having more specific pre-employment tests and interviews with actual department heads who can gauge whether or not the candidate will mesh well with their team is one measure you can try. Another is implementing a robust employee referral program. By encouraging current employees to refer candidates they believe would be a good fit, you can leverage your existing workforce's understanding of the company culture and job requirements.
2. Automate HR Tasks
Many companies remain stuck in their traditional ways, meaning there’s still too much paperwork and manual checking involved when things can just as easily be automated. Having the right tools to automate various HR tasks can help save time, thus allowing your HR staff to operate more efficiently.
For example, the Philippine payroll system has always skewed toward manual checking of attendance and crediting of salaries. However, a payroll disbursement solution like Maya Disbursements that can schedule salary distribution accordingly can do wonders in saving your HR department time and resources during payroll processing. Maya Disbursements can be used to make other bulk payments as well, including allowances and incentives. This is the reason why it’s one of the most popular payroll automation solutions for manpower agencies, logistics companies, business process outsourcing companies, direct selling agencies, and other businesses that regularly disburse funds to their employees.
Take note that human errors can be costly as well, so automating helps you avoid those while at the same time improving efficiency. Likewise, having dedicated tools such as an automated payroll system or records management software eliminates a significant amount of paperwork to be done, freeing up your HR staff to focus on more complex duties.
3. Reevaluate How Current Training Programs Are Being Delivered
Arranging training programs for employees is another important aspect of HR work. As you can imagine, expenses on hiring speakers or instructors to preside over those programs, as well as the costs associated with setting up the training venues and arranging the events can quickly add up. However, as these training programs are crucial in employee development and engagement, cutting them off completely shouldn’t be your go-to solution for cost cutting. Instead, try to reevaluate how current training programs are being delivered so they can become more cost-effective.
For example, is there really a need to hold such a program physically or can it perhaps be done online to save costs on buying training materials and booking a venue? Likewise, HR can also look into online courses that align with the intended program. Perhaps, buying access to such courses can be a more affordable alternative to creating training programs from scratch.
Also consider consolidating programs that seem to overlap. For instance, if two different departments in the company are receiving the same variation of a data security seminar, then why not just combine them in one session rather than hold different ones? Likewise, programs and engagement activities that aren’t gaining much traction can be eliminated to save on costs. You may even just consider recording training programs and distributing them to new employees or other departments to watch instead of arranging a repeat of the training program each time it’s needed.
4. Eliminate Unnecessary HR Programs and Consolidate Similar Ones
Another effective way to reduce costs in your HR department is to critically evaluate all existing HR programs and identify those that may no longer be necessary or that duplicate the efforts of other initiatives. Programs and activities that do not add significant value or do not align with the current goals of the company can be phased out or restructured to be more cost-efficient.
Start by conducting a thorough review of all HR programs, including wellness initiatives, employee engagement activities, and benefits packages. Solicit feedback from employees to understand which programs they find most beneficial and which ones are underutilized. This can help in making informed decisions about which programs to eliminate.
In addition, look for opportunities to consolidate similar programs. For example, if your company offers multiple wellness programs that address similar health issues, consider merging them into a single, more comprehensive program. This can streamline administration and reduce overhead costs.
By eliminating unnecessary HR programs and consolidating similar ones, you can focus your resources on the initiatives that truly matter
5. Put More Focus on Employee Retention and Development.
As we’ve established, hiring new employees can be costly. As such, focus on retaining employees who are already well-versed in their work and are already actively contributing to the company’s productivity.
Retention strategies can include offering competitive salaries, providing opportunities for career advancement, and creating a positive work environment that promotes job satisfaction. Regularly recognizing and rewarding employees for their hard work and achievements can also boost morale and loyalty.
Additionally, investing in the professional development of current employees can pay off in the long run. By offering training and upskilling opportunities, you can ensure that your employees remain competent and motivated. This not only helps in retaining talent but also enhances the overall capabilities of your workforce, making your company more competitive.
Help Your HR Department Reduce Costs with Maya Disbursements
Cutting costs in your HR department doesn’t have to mean reducing its efficiency. Thanks to payroll management systems such as Maya Disbursements, you can ensure employee salaries will always be credited in a timely manner. Sign up for Maya Business today to take advantage of Maya Disbursements’s ability to automate salary, allowances, and incentives distribution.
Signing up for Maya Business also lets you open a Maya Business Deposit account for your company. With its industry-leading 2.5% per annum interest rate, you can earn PHP 25,000 in interest per year on a PHP 1 million deposit. Enjoy free money transfers to your business partners and suppliers as well via InstaPay and PESONet.
Having a Maya Business account also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months. The additional funds can be helpful in making cost-efficient changes for your HR department. Note that using Maya as your primary processor for all wallet and card payments can get you better loan offers as well.
Sign up for Maya Business today and enjoy the benefits that Maya Disbursements can bring to your HR operations.
