Consider human resources when planning for new year

Since payroll is the largest line item in a budget, obtaining financial information regarding all aspects of human resources is critical. That data can be obtained through careful examination of several issues.

Recruiting employees

The first human resources issue to consider is the cost of recruiting. Calculate the expense of each technique utilized in 2006, and determine which methods used did not result in the addition of a new employee.

Remember, the quantity of résumés and applications received from a method means nothing. Even if only one candidate applied, if he was the person hired, then that recruiting source was effective. Stop using ineffective approaches and cut down recruiting expenditures.

Offering appropriate benefits

Develop and conduct a written benefit satisfaction survey. Create questions to determine which current benefits are not desired by employees. Eliminate those and instantly save money. Upon discovering benefits laborers want, contact your insurance broker to investigate various options with your current carrier that will decrease costs incurred by both the enterprise and team members. In addition, be sure your broker contacts other carriers for even more cost-saving solutions, which might include health savings accounts and flexible spending accounts.

Trimming turnover

The cost of one person leaving is 50 percent of his first year’s salary, according to the Society of Human Resource Management. Since turnover is very costly, a significant amount of effort should go toward keeping good workers.

An employee satisfaction survey is a proactive technique to identify and rectify problems before a laborer resigns. Use a four-point scale to force people to choose a positive or negative stance. Keep the surveys anonymous. Encourage associates to write comments. Be sure to cover all aspects of the employment cycle. Since the No. 1 reason for resignations is poor management, the survey should cover all aspects of effective supervisory techniques, such as delegation, motivation, feedback and team building. Typical hiring and training topics consist of the new employee orientation program, availability of training for existing staff and ability of management to hire good people that fit and stay. Incorporate questions about team member performance reviews; how raises are determined to find out whether raises are fair; whether workers are surprised by any aspects of the performance reviews; and whether the forms used fairly and accurately cover employees’ responsibilities.

Ask questions that will help you decide if discipline and termination procedures are timely, fair, administered consistently and conducted in a respectful manner.

After scores are calculated, share the results and celebrate areas of success. Identify problems that can be fixed quickly and address them. For issues that will take time to fix, develop an action plan – with deadlines – and keep everyone posted on progress. If there are issues that cannot be resolved, explain why that is the case.

In spite of this seemingly negative situation, you will be surprised at how well the news is taken when the company is acting to resolve so many other issues.

Other issues to consider are safety, absenteeism, workers’ compensation and unemployment claims.

By placing dollar amounts on the various human resources functions and requiring financial accountability, organizations will experience higher revenues and lower expenditures in 2007.

Lynne Haggerman, M.S., is president/owner of Haggerman & Associates, a firm specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@haggermanandassociates.com.[[In-content Ad]]