The 5 Minute Guide on How to Cut Down on Human Resources Costs

The backbone of any good company is undoubtedly its employees, the workforce that makes the company able to deliver its service or product at the level of quality that is expected of it. The managers and the CEO are there to coordinate the company, to help it grow, expand and branch out, and you, as a human resources manager, are the integral link that holds the two together.

You are the one responsible for ultimately keeping the employees content, making sure that they’re doing their job correctly, and managing any and all resources regarding the workers themselves. More often than not, you are also the one responsible for optimizing the workforce and making sure everything is organized to be as cost-effective as possible. More often than not, this means that you have to cut down on costs in one way or another, and this is something that a lot of people in human resources are reluctant to do.

This is primarily due to the fact that cutting down on human resources costs often translates to lowering employees’ salaries, and this is a surefire way to upset your workforce, something that you should never do. Fortunately, there are other ways in which you can save money for your company, and today we want to talk about just some of those ways.

Human Resources Costs with Redundant Employee Programs

Every good company provides its employees with some kind of benefits, a practice that has definitely proven to be effective at keeping workers happy. However, over an extended period of time, this can be a real expense, especially if your employees aren’t using their benefits to their utmost extent.

As a human resources manager, it is your job to keep yourself updated with this kind of information, so you can potentially get rid of an employee program that isn’t getting much use.

This will take a bit of research, but if your company is truly spending a lot of money on a redundant program, it will ultimately be worth it. You can always survey your employees and re-invest the money in a program that they’d actually be willing to use, but there’s no point in continuing to pay for something that maybe 5 or 10 percent of your workers are indulging in.

Automatic Surveys & Statistics

A company is a complex system, and monitoring all the parameters in such a system takes a lot of work. Unfortunately, it’s absolutely necessary that you do this in order to keep track of everything that is going on, but this can also be a burden on your company’s finances if it is not handled properly.

Technology has advanced significantly in the past few decades, but in spite of that, many companies still cling to the „tried and true“ approach of doing everything by hand. A good example of this is precisely the process of gathering and processing statistical data in the form of surveys, questionnaires, and so on.

With the pen and paper approach, this can take a considerable amount of time and funds, but the good news is that you can easily switch to a more automatic, modern system that will reduce your workload and help your company cut down on human resources costs significantly. A piece of survey software like GetCertified allows you to quickly survey your employees with weighted questions without having to print out a single piece of paper and instantly provides you with accurate, processed statistical results.

Proper Risk Management

The prevention of expenses is often more important than cutting down on existing human resources costs, so this is also something you should take into consideration in the process of balancing your company’s finances. Nine out of ten times, it is very worthwhile to invest in risk management before an accident happens because accidents of any kind can potentially cost your company a lot of money.

If you want to get more specific, according to the Harvard Business Review, implementing proper risk management in your business can save you up to $85 billion. When most people hear the word „risk“, the first thing that comes to mind is taking precautions to prevent accidents like fires in the workplace, but there’s much more you can do. Fraud and theft in the workplace are more common than you might think, and this is something that is much more likely to happen than a fire.

Reorganizing Job Roles

Finally, one of the best ways that you can optimize your worker’s performance and significantly cut down on costs is to think about job roles and whether all your employees are investing their best assets in their workplace. In other words, whether or not they have an opportunity to use their real talents for the benefit of the company.

Switching out job roles once in a while might not be bad at all, and you can get a better idea of how to switch your employees around by issuing them certain performance tests from time to time. Again, we recommend that you use automated testing software for this purpose, as it will make the process far easier and more efficient, and it will help cut down on human resources costs in and of itself.


As you can see, there are many ways in which you can save money for your company without having to extort your workers, ultimately to the benefit both everyone in your workplace. If you approach the problem correctly and are inquisitive about where your excess funds could be leaking out, it’s easy to find an adequate „patch it up“  before you run into any serious financial problems. We wish you and your company the best of luck in your further endeavors and sincerely hope that these tips have been rather helpful.

Do you need a hand in test design and delivery, candidate organization, or transition from pen & paper to computer-based testing? Our team of professionals assists in managing every step of your exam to secure large-scale assessments.
Check out our Online Testing Center and schedule your first session today!

Contact us for a Live Demo or a 30-Day Free Trial.