How to Reduce HR Costs Without Losing Performance in Day-to-day Activities?

Knowing how to reduce HR costs is an important task for any department, so the company can operate more profitably. The challenge is that this financial economy cannot affect the performance of sectors, such as HR, which have high standards.

Truth be told, mitigating spending is never easy. Everyone believes that they need more budget to carry out tasks with mastery, but not quite! There are many things that can be done that will certainly help to reduce HR costs or, at the very least, optimize operational efficiency, allowing you to do more with less.

With that in mind, we have created a guide especially for you. Today, we will teach you how to reduce HR costs without losing performance in day-to-day activities. Keep reading our content and stay on top of the subject. Good reading!

Bet on Collaborative Training

In Brazil, this idea is still not widespread, but it is already possible to see some startups putting it into practice. To be clear, collaborative training is developed and applied by someone from the team, with some specific competence.

Imagine that there is a marketing expert on your team. Use it strategically. Ask him to develop a presentation on using social media to attract talent and build an employer brand, then share it with the rest of the team.

In addition to making the knowledge retained in some people shared, this training model contributes to greater integration among employees, development of specific skills, and, of course, cost reduction.

Investing in In-Company training, most of the time is very expensive! Company training, which has lower costs, does not benefit the entire team. Then, test the collaborative model and then assess whether you have achieved the expected results.

Use Videos in Selection Interviews to Reduce HR Costs

The interview is very important, as it is possible to eliminate any doubts that may have remained when reading the candidate's curriculum and deciphering his behavioral profile. The problem is scheduling face-to-face interviews, especially in the early stages, where there is a large volume of candidates, it costs a lot of time, energy, and money for HR professionals.

The solution is the video interview, which optimizes the screening stage of your recruitment and selection. In this model, there is no need for a face-to-face call, everything can be done remotely, with more flexibility and convenience for both parties.

See, now, other features:

• you can share the interview with other company managers;
• it is possible to record the interviews easily;
• you can integrate the interview with the hiring system used.

With video interviews, instead of reading professional profiles, it is possible to obtain more information about each candidate. You can prepare strategic questions and ask each candidate to answer, then move forward or backward as you see fit.

Measure and Improve Performance Indicators

The use of indicators is increasingly common, after all, today HR is a strategic sector and subsidizes its actions in real information. But, it is necessary to understand that any negative indicator is a cost to the company or, at least, a resource that is being misused.

Know some of the main indicators:

• turnover rate;
• absenteeism index;
• level of internal satisfaction;
• rework number.

Analyze each of these indicators and look for better results. Therefore, it is possible to bet on a cash management model, in which everyone is aware of the current results, as well as in the definition of smart goals that challenge the status quo.

Eliminate Errors Due to Lack of Communication

Peter Drucker, management guru, says that more than 60% of the problems happen due to lack of communication. In HR, it is possible to highlight the scheduling of unnecessary meetings, lack of alignment of the work team, improper use of cartridges and sheets for printing, the occurrence of conflicts, and internal accidents, among others that make it difficult to reduce HR costs.

The fact is that, in order to eliminate costs, good communication is essential. Efficient channels are needed to carry the message from the sender to the receiver with the least possible noise. Now, know some of the most used tools:

• message boards;
• specialized systems;
• mobile applications;
• corporate email.

The use of the ideal tool depends a lot on the profile of the HR team, the size of the company, and the budget available. If the company is large, for example, it is better to use a specialized system or mobile application than a message board.

Use New Technologies to Your Advantage

The number of exponential technologies applied to the HR area is increasing. And it would be no wonder, this department is fundamental to building a successful company. According to research, companies that invest effectively in people management have a performance (on average) 51% superior to the competition.

Among the technologies, it is possible to highlight:

• behavioral profile analysis systems;
• tests of logical reasoning and proficiency;
• data analysis tools (People Analytics);
• niche work portals;
• task management software

Talent acquisition software is increasingly used, especially because it facilitates each stage of the selection process, from the start of recruitment to the choice of the appropriate professional, adding efficiency, speed, and savings to hiring.

Good hiring software allows you to monitor each step of the process, survey performance metrics, centralize communication with candidates, build career pages, and many other things.