Alternatives to Layoffs — Part III

Strategy #3:  Reducing HR Costs

Many companies still haven’t transformed their HR area to reduce costs and improve support to the business.  Cost reductions of 25% are possible and the change in HR from administrative transaction processor to business partner significantly helps line managers.

  • Examine the possibility of self-insuring benefits such as dental or optical coverage.
  • Consolidate human resource or training functions in the field where appropriate.
  • Streamline HR processes and procedures such as the approval process for hiring, transfers, and performance appraisals.
  • Employee performance appraisals are generally more effective and less time-consuming if held on a quarterly or semi-annual basis, rather than annually.
  • Reduce duplicate paperwork, data input, and manuals.
  • Automate HR functions via internet applications, for example benefit enrollments.
  • Push more responsibility onto vendors.
  • Renegotiate vendor contracts.
  • Outsource selected HR functions such a payroll, benefits administration, training, or recruitment.
  • Restructure HR to provide new challenges and improve efficiencies through new HR staff performance goals and accountabilities.

For a copy of the full report click here.

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