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charmsli
Need help.. any cost reduction activities in HR other than paper cost reduction? please direct me to the right thread if any...thanks!
Helmut Jilling
Auditor / Consultant
Re: Cost Reduction Activities
When you say HR, do you mean Training, or hiring and managing employees?
If Training, much cost is wasted on poor training. Training must be well developed, have clear skill lists, clearly defined outcomes. Trainers must clearly understand what their goals are. Over training (teaching people things they already know), or undertraining (doing training but not getting good results)are both bad.
If you mean hiring and firing, many companies waste money bringinf in unqualified candidates, and having them leave in a few days. This raises costs.
When you say HR, do you mean Training, or hiring and managing employees?
If Training, much cost is wasted on poor training. Training must be well developed, have clear skill lists, clearly defined outcomes. Trainers must clearly understand what their goals are. Over training (teaching people things they already know), or undertraining (doing training but not getting good results)are both bad.
If you mean hiring and firing, many companies waste money bringinf in unqualified candidates, and having them leave in a few days. This raises costs.
Hi charmsli,
If you list down your departmental responsibilities, that would help to identy the cost reduction activities.
As a first step, I would suggest you to brainstorm within your department to identify these measures. Usually the people working on those activities can come out with brilliant ideas. Most HR departments in Asia also have administration portfoilio under them and could have lot of cost reduction initiatives.
Some starters would be - Reduction of overtime, Rationalization of transport routes for buses taking employees, Review the canteen menu / look for different contarctor who provides more cost effective menu, review the contractors who provide non productive services like gardening, security, pest control etc.
So with these, have an effective brainstorming and let us know if you succeeded
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charmsli
Re: Cost Reduction Activities
Actually, all aspects of HR -from hiring, training and retaining up to firing and facilitating a smooth exit from the company. I name some such as paper cost reduction, labor cost reduction through overtime and job description review. I just wanna make sure that I am on the right track.. The things that you mention helped me too. Thanks and best regards. Hope to hear from you more sometimes..
Actually, all aspects of HR -from hiring, training and retaining up to firing and facilitating a smooth exit from the company. I name some such as paper cost reduction, labor cost reduction through overtime and job description review. I just wanna make sure that I am on the right track.. The things that you mention helped me too. Thanks and best regards. Hope to hear from you more sometimes..
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joshua_sx1
As others mentioned, one of the best way is to identify your HR main functions… and then express them in numerical value… because this is when you can control processes when they are in numerical value…
…you goal is to reduce cost… next question would be - by how much?
…you goal is to reduce cost… next question would be - by how much?
R
ramvaidhya - 2009
Hi,
Many times the HR cost reduction goes in to " employee unfriendly " activities. I see the HR can generate value creation and talent growth in organization which is a core purpose of HR. The work related to find solution to Talent grooming for new market challenges , create job flexibility, Talent retension , successor planning are realy help the organization to grow...
Many times the HR cost reduction goes in to " employee unfriendly " activities. I see the HR can generate value creation and talent growth in organization which is a core purpose of HR. The work related to find solution to Talent grooming for new market challenges , create job flexibility, Talent retension , successor planning are realy help the organization to grow...
Geoff Cotton
Quite Involved in Discussions
I'm just launching some new KPI's in our company, one of them is "Reduction in Unplanned Absence" for the HR dept.
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charmsli
As others mentioned, one of the best way is to identify your HR main functions… and then express them in numerical value… because this is when you can control processes when they are in numerical value…
…you goal is to reduce cost… next question would be - by how much?
Yes, you're right, this morning when we had a meeting, we talked about how can these cost reduction activities be translated into numerical value. Its also easier if we use the 7 QC Tools in identifying and assessing the corrective measures to be done.
Thanks for the info and best regards!
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charmsli
That's sounds great! I'm also planning some programs which invloved labor reduction through Overtime and Job description review.
Regards!
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jude2010
The first step should be to chart your costs. Categorize your costs and create some sort of Pareto chart. You will see what costs the most. Then think about cost drivers for that category. That should lead you to the most effective ideas.
