Why forward-thinking businesses have identified the importance of making their HR departments as cost effective as possible

British businesses spend a whopping £4 billion every year in the recruitment and replacement of staff. Often regarded as a fundamental and unavoidable business expense, many companies are seemingly unaware that by ensuring that they have the correct systems in place much of this unnecessary expense can be eliminated.



Recruitment is often factored in at the outset, as of course a business is only as good as the staff that they employ. However, in many cases replacement and future staffing is simply seen as something that they have no control over. Staff recruitment is an on-going and constantly evolving process and ultimately accounts for a large amount of companies’ time and funds. Apart from the initial recruitment stage, other factors such as training, reference-checking, staff motivation and wellbeing are all part of a busy HR department and as such take up valuable time and incur ever increasing costs. It is widely accepted that in some cases these are areas where budgets are being trimmed which can result in staff dis-satisfaction and increase rates of staff turnover, not the ideal situation at all. Forward-thinking businesses have identified that this as an area where, with a little pre-planning, both HR running costs and processes can be streamlined.


Whether a business is a new start up, an expanding SME or a large national employing many thousands, there are several factors that they all must take in to account:



As previously stated reducing costs but increasing turnover is vital. But how can this be achieved? One obvious area is by reducing the time that it takes to complete certain processes and procedures. Building your HR team from highly experienced recruitment experts ensures that the processes of advertising, interviewing and training staff is the best that it can be. Integrating new technologies and software can also be another way to enhance and improve the way things are run. There may be an initial cost, however, it is important to figure out how much you will save long term and if it will be of benefit.



Typically advertising, interviewing and subsequently checking references can be a long drawn out process, often requiring repeated attempts to gain the correct information in full. By streamlining the process, having dedicated application forms and templates for reference checking will all help to reduce time. This can be outsourced but can be costly and problems may occur if the information is difficult to be accessed. Keeping it in house and introducing new software that can streamline the process and speed things up can be cost efficient and beneficial to any business.


Staff Training

This is a vital part of running an efficient HR department. Manufacturing processes along with laws and regulations are constantly being updated and introduced, GDPR being one very current example that affects all businesses. Ensuring that staff feel empowered by updating their training will give them confidence in their role and help to make them feel valued. It will also avoid unnecessary mistakes that could be costly in the long run.


Staff Wellbeing

Looking after your employees, especially outside the basic remit of their specific job description, will have a positive effect on their performance, and as a result their longevity with your company. Creating fun and relaxed working environments, an open culture for communication and enabling career progression and training will make an employee feel valued. This will lead to higher levels of productivity and job satisfaction and again help to reduce staff turnover. As already stated, reducing staff turnover minimises interruption and inconvenience to the business as well as freeing HR managers up to concentrate on training and other matters.
















Author: Editorial Team

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