2# Cost saving – How to minimize HR costs painlessly?

Achieve a lot, with almost zero budget?



Do you think that’s impossible?

Certainly difficult, but not impossible.

Before such a challenge – a small or tightly-cut budget – there are very often human resources departments, when the budget and all kinds of savings initiatives are planned. HR is usually “in sight” because (as described in 01 # Cost saving), employee costs are placed on one of the three main items that generate the largest costs in the organization.



And expectations are that big things will happen with almost zero budget. It may seem impossible, but the good news is that sometimes you can do it ­čÖé

Some examples…


Acquiring talents – recruitment



Acquiring and effectively retaining talents is one of the most difficult and, at the same time, most expensive tasks that the HR department performs.

Reducing costs in this area is therefore associated with effective and efficient implementation of the entire process of acquiring talents: from defining requirements and necessary qualifications, to collecting and selecting candidates. Finding the right person quickly for a specific job can reduce the cost of a long or recruitment process that is repeatedly carried out.


How to reduce recruitment costs?


When it comes to recruitment, there are ways to reduce costs without causing “suffering” in the long run.

I will focus on two aspects of the recruitment process:

1. Acquiring information about the recruitment needs and desired qualifications of candidates. (internal process)

2. Conducting the recruitment process. (internal and external process)

A lot of companies forget about the savings potential of point 1, and immediately go to cut costs in the process of acquiring talents.

As the proverb says: “Time is money”, so the more efficiently and accurately we determine the profile of the candidate, the lower the internal recruitment costs will be. Why? Because we engage less time in the HR department and we quickly fill up a vacancy that can “earn money”.


How to improve the internal process – obtaining information about the recruitment needs and qualifications of the candidate?



  • specify what you need to do as a recruiter to get information about the candidate’s profile
  • confirm the requirements with the management staff
  • start the process of acquiring talents
  • specify the maximum time to complete each stage


What can be done to reduce the costs of the recruitment process – internal and external process?


a) Internal recruitment – check if there are candidates within the organization who meet the requirements of the new position and are interested in changing. If so – take them into account. Why look far, since resources are available “on the spot”.

b) Hiring a recruiter – a solution for companies facing a difficult challenge of fast and mass recruitment, and own resources are not enough to carry out this process. It is also an alternative for those enterprises that do not have the financial resources provided by the recruitment process to professional outside companies.

c) Using professional portals and systems supporting recruitment – this solution allows you to collect applications and motivational lists of candidates, select applications according to specific criteria, send responses and serial correspondence, eg to thank you for your participation in recruitment.


d) Analysis of databases – such a service is offered by professional personnel consulting companies; thanks to it you can get CVs of candidates with the profile you are interested in, but the substantive check is on our side.



Employee benefits and benefits



This is a very difficult area, because depriving or reducing benefits can lead to employee dissatisfaction and frustration.

So when it comes to benefits and benefits of all kinds, focus first on what benefits have the greatest impact on employees. For this purpose, you can, for example:

– conduct a “customer satisfaction” survey among employees,

– analyze historical and current data, how many people have used / used individual allowances.

You can also try to reduce costs without reducing the benefits for employees by comparing health insurance offers from different suppliers, and the knife gets a better offer at a favorable price. Similarly with other extras such as sports cards, language courses, etc.

Negotiate terms with additional benefits providers for employees!



Professional development




Professional development can not be limited or even halted only because the HR budget has decreased.

In fact, this is one of the areas in which you might want to compete with others and focus on the highest quality, because maintaining the best talents will be more important than ever before.

Instead of spending a lot of money on continuing education, conferences or vocational training workshops, you can take advantage of free or cheap resources, such as mass open online courses, webinars offered by professional organizations, free webinars, internal mentoring programs, and internally-oriented courses targeted at specific skills.

Training, conducted by experts from within the organization, has huge potential. In addition to reducing training costs, on the other hand, it is an excellent motivator and distinction for internal trainers.



Increasing employee morale and prestige – Employer Branding




Do not let your company’s culture and morale put a lot of pressure on your efforts to reduce costs.

Like in the case of professional development offers, this is one of the areas that should be developed and promoted at this time.

Consider using convenient benefits that you can organize and offer to employees, but for which they will pay for their use. These can be, for example:

– vending machines with drinks and snacks,

– a canteen with special products preferred by employees, such as gluten-free products, for diabetics, fresh fruit, cocktails, etc.

– medical services and dedicated programs, e.g. spinal prophylaxis, massages, gymnastics,

– ┼╝┼éobek / kindergarten for children of employees near the company,



Because many employees already pay for these services, additional convenience will definitely be appreciated.

You can also consider creating a so-called an employee committee that collects money to provide small, fun events for employees or their children.


Risk management – preventive health and safety



Risk management may not be the first thing that comes to your mind when you try to cut costs, but it can bring huge benefits.

This is one area where positive changes can directly translate into saved money.

Start with a health and safety (OSH) health and safety program that directly affects the amount of contributions and compensation for employees.

Do not focus only on preventing accidents in the workplace, but also offer an assessment of ergonomics. For this purpose, you can, for example, provide seasonal training on a specific problem, such as working in the heat, driving with controlled slip, safe work on the production line, and even exercises in the field of safety.

Because a large part of the company’s costs come from the HR department, regardless of whether it is talent acquisition, professional development or benefits, any savings that can be generated can have a significant impact on the company’s financial results.





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