Working with a HR consultancy firm has a long list of benefits: compliance, brand reputation and time saving to name a few. But one of the biggest advantages of using professional HR consultants is that it saves the business money. It may be difficult to notice, as HR is a service you need to invest in, but a commercial HR team works closely with the management to achieve business goals and identify cost savings.
If you would like to ensure the company is financially sound in 2018 and focus on profitability, here are the key ways Hunter Adams HR consultants can reduce outgoings and increase the bottom line.
Cost reduction and downsizing
If the business is going through a particularly challenging time, and drastic action needs to be taken, HR professionals can conduct a cost review and tell you where savings can be made. A cost reduction strategy can be implemented, including reducing the workforce, to ensure the business survives a transition period. As a HR consultancy company we can guide you through the process and take a sensitive approach.
Without a quality recruitment team in place, businesses can waste thousands of pounds on finding the right candidates or hiring the wrong team members. Recruitment agency spend can eat into profits, but in many cases organisations don’t have the time to recruit internally and directly. Hiring a recruitment advisor interim from a HR specialist can drastically reduce outgoings associated with filling vacancies. You’ll find the roles are also filled more efficiently with top talent in the industry, thanks to the recruitment consultant’s connections.
Another large cost which can be mitigated by HR teams is staff turnover. Replacing employees is extremely expensive, and the cost of staff turnover to British businesses is reported to be at least £4.13bn annually. When calculating how much it costs to replace an employee, you need you consider upfront costs such as agency fees and advertising, and the cost of wages while the new staff member reaches peak productivity. Working with HR consultants to improve company culture and engagement can boost the morale of the workforce, and help to retain your staff. When businesses with a high turnover need to reduce spending, staff retention is the first thing to address.
If you neglect legal compliance then it’s possible at some point you may risk a large fine or lawsuit. Spending a little time and money conducting a HR audit can save a lot of disruption and money in the future, so it’s vital to have an external review. Employment laws are constantly changing so it pays to have HR consultants on hand to identify any gaps in your strategy, and reduce the chances of costly non-compliance procedures.