As the owner of a small or medium-sized business, your business has to run effectively to stay alive and produce a profit. One key area where smaller businesses spend a lot of money is HR. Changing HR costs and benefits is a balancing act — pay people too much, and your business’ bottom line gets hurt. Pay employees too little, and your business may have to deal with continuous churn or lower-quality employees.
Luckily, there are ways to cut down on HR costs without touching employee salaries or bonuses. Here’s how.
1) Invest in Software
Many of the functions of HR can be automated using software. ATS, or Applicant Tracking Systems, can help cut down on the amount of hours your HR staff works by making it easy to track applicants, rank them, and contact them. Many Applicant Tracking Systems also help to retain talent, which cuts down on churn.
Consider going paperless, as well. With many kinds of software offering backup to cloud services, going paperless can save money on printing, paper, and storage. While the amount of money this saves may seem inconsequential, the costs build up over time and will eventually result in substantial savings.
2) Consider Alternative Employees
With the advances of the internet, the workforce has become more diverse than ever before. Depending on your business’s needs, you may be able to outsource your positions to virtual workers. Virtual workers can take advantage of differences in currency to provide cheaper work. What’s more, many virtual workers can be paid per service or a la carte, and there is often no need to pay for their benefits.
Depending on the tasks, you may be able to outsource to Fiverr or Upwork as well. These online freelance services allow you to pay a nominal fee to get work completed. Services range from data entry to PowerPoint creation. It may be possible to trim some of your administrative positions by using these services.
3) Work with a Managed IT Service
IT personnel have hefty salaries. That, combined with the need for improved tech and software, can quickly add up. In fact, for many small and medium-sized businesses, IT departments make up a substantial part of their overhead.
You can cut down on how much you spend on IT by working with a managed IT service. Managed IT services save your money by managing all of your IT needs. Most services charge a monthly fee to maintain your business’ IT functions and monitor for cyberattacks.
The Bottom Line
Human resources can take a large bite out of your business’s budget. By investing in an ATS, outsourcing when possible, and working with a managed IT service, you can rein costs in.
Need help with your IT? Contact Vodigy today! Our team of experts specializes in helping small and medium-sized businesses make the right choices about tech.
