Why Planning HR Is Crucial To Business And In Saving Cost?

Business owners and leaders would agree that one of the most valuable investments they spend on every year is the cost of their workforce and managing their Human Resources. Hence, the company workforce is also companies’ greatest asset. This is how critical that businesses have to get things going and ensure that they do not waste time and money in finding the right strategy and the right HR Service Providers to look after their workforce.

The HR function in an organisation can be both Transactional and Strategic. Transactional HR are the day to day functions that are already established - particularly involving employee relations, welfare, time & attendance, leaves, payroll, etc. The Strategic Function of Human Resources, on the other hand involves organisational change, usually complex and comprehensive, talent management, employee engagement, performance management, leadership development,etc. These are the functions that requires different level of expertise. You will need a practitioner who has a considerable amount of experience and who invested on research & studies throughout their career to be on this level of competence. Both of these functions and its delivery will have a lasting impact on the employee experience and can differentiate how an organisation manages its employee retention.

Set your HR Goals, Strategy and Manpower Plan

As a business - small or big, you will need a strategy on what workforce you want to develop. This is to avoid making mistakes from reactive approach and doing trial and error such as, wrong hire or over hire leading to high employee turnover. This will ultimately cost the business and is definitely a waste of money. Getting the right HR Service Provider to advise you with your manpower plan, HR Strategic Plan, Budgeting, and Organisational Design will save you a lot of time and money.

Look into the cost impact of having an in-house HR Function and compare with an option of getting consultants to do the job.

Whether it’s for setting-up or maintaining HR, the overhead and other HR associated costs are typically very high when you do it in-house. Establishing a fully functional HR Department will require additional offices, HR systems, insurances, and paying highly trained staff who will be dealing with each HR function. The cost will be significant for all companies-and even worse for small and medium businesses, to start on.

In most situations, businesses can achieve high level of efficiency and workforce management by engaging with a professional HR Consultants & Service Providers and it can have significant cost-saving impact for your organisation.

If you only need to kick-start to ensure that you are on the right path, it may be worth it to consider hiring HR Consultants to save your time and risk the cost of mistakes, wrong hire, and regulatory expenses. It will be worth looking at a more cost-effective ways of having an HR function and speak to HR Service Providers. Make sure you get the right specialists for your requirement. This is indeed the future of HR. Focusing on employee experience, minimising unnecessary costs, and ensuring effective service delivery that are both win-win for the organisation and employees.

Our team of HR Consultants from People Bureau can assist you in planning your Human Resources and in preparing your HR Roadmap to ensure that you are on the right track. To contact us for initial discussion, click here.