76% of decision-makers identified rising costs as the biggest risk to their business in 2023. The solution? Cutting costs.
It’s everywhere we look: from articles about the cost of living impact on companies, updates from people we know about layoffs, and Linkedin updates about closures of businesses. There’s no denying that cutting costs is an absolutely essential part of business operations in 2023.
So, what does that mean from a HR perspective?
Well, as companies are cutting costs, HR people are handling the human impact, whilst also having their budget cut too.
As Ginni Lisk, our HR Consultant says, “Not responding effectively [at this time] will incur a cost of inaction that threatens to impact the most crucial HR business outcomes; things like retention and engagement”.
So, how can you respond effectively? And is there a way to cut costs whilst improving employee engagement?
Let’s dive in.
How To Handle The Pressure of Cutting Costs in HR
There are some things that you simply cannot afford to cut. For example, providing adequate, engaging benefits that promote engagement within your team and help with both retention and recruitment.
Although, we will be explaining how you can save money whilst increasing the engagement with your benefits shortly, so stay tuned…
However, if you are being directed to cut costs, you might be able to cut costs in other areas, whilst still prioritising the things that provide your employees with the most benefit.
In order to keep budget towards the absolute essentials, you can cut budget by changing your HR operations slightly and optimising. Some great ways to do this are:
Automating HR processes: automating HR processes such as payroll and benefits administration can reduce the cost of manual data entry and reduce the likelihood of errors. This can also free up HR staff time to focus on more strategic initiatives.
Offering flexible work arrangements: implementing flexible work arrangements such as remote work can reduce costs associated with office space, utilities, and other overhead expenses. Flexible working can also boost employee productivity and engagement.
Streamlining HR operations: streamlining HR operations and reducing paperwork can help eliminate waste and improve efficiency, ultimately reducing costs.
Leveraging technology: reducing training and development costs by leveraging technology such as e-learning platforms can provide more cost-effective training opportunities.
Regular audits: conducting regular compensation and benefits audits can help identify areas for cost savings and ensure that HR programs are cost-effective and aligned with company goals.
Why Is Not Prioritising Employee Wellbeing So Dangerous?
Prioritising and optimising your operations is the best way to ensure your most powerful employee engagement strategies can be saved.
Employee benefits aren't something you should be cutting.
Here's why doing so could be so harmful to your company:
1. Reduced motivation and job satisfaction
Employee benefits play a significant role in improving the overall wellbeing of employees. Cutting such benefits can lead to reduced motivation and job satisfaction among employees.
2. Increased stress and burnout
When employees do not have access to the support they need to maintain their wellbeing, it can increase their stress levels and lead to burnout. This, in turn, can negatively impact their work performance and overall productivity.
3. Decreased loyalty and retention
When employees feel that their employer is not investing in their wellbeing, they may start to question their commitment to the company and look for alternative employment opportunities. This can lead to increased turnover and decreased loyalty.
The Trick To Cutting Costs: Prioritising Employee Wellbeing
Whilst you definitely cannot cut your employee benefits or employee wellbeing initiatives, you can optimise them.
By leaving behind one-size-fits-all perks and instead choosing to provide personalised benefits that run through a centralised system, you can save money whilst also making more of an impact on the wellbeing and happiness of your team.
Wasted wellbeing budgets are a thing of the past: using providers that allow companies to care for everyone in a budget-friendly way is the future.
Focusing on employee wellbeing, rather than cutting it, can actually help your company save money in a myriad of ways, both in the long run and the short run. Here’s how:
1. Reducing turnover: a healthy and engaged workforce is more likely to stay with the company, reducing the cost of recruiting and training new employees.
2. Improving productivity: employees who feel supported and valued are more likely to be motivated and productive at work. This can lead to increased efficiency and improved outcomes for the company.
3. Reducing absenteeism: when employees feel well and satisfied in their jobs, they are less likely to take time off work due to illness or stress. This can reduce the costs associated with replacing absent employees and minimise disruptions to business operations.
4. Improving morale: a positive work environment and supportive culture can improve employee morale, leading to greater job satisfaction and a more engaged workforce.
5. Attracting top talent: companies that prioritise employee wellbeing are more likely to attract and retain top talent, helping to improve their competitive advantage.
How To Cut Costs and Improve Employee Engagement, With Juno
Your company can still continue to grow whilst taking care of your team - you just need to be more resourceful and optimise operations.
If something isn't working for your team and you're wasting budget, 2023 is the year to change it.
Choosing to centralise your benefits rather than having multiple providers can help you to maximise your investment.
Join the hundreds of other companies like Buttermilk that are making a saving, and improving their benefits engagement by clicking here to find out more.