Is 2014 the year of opportunity and positivity? We all hope that it is and with our recent exit from the bail out and with positive economic growth we are all looking into the new year with a renewed optimism. However, with a New Year comes a new plan and if there is an improvement in our economy then the best way to take advantage of this is for employers to continue to control, manage and plan costs. It is important to proactively plan for the future needs of the business and in this piece we look at the top tips for managing HR costs in 2014.
1. Temporary Workers
Employers need to be able to anticipate staffing needs and actively be able to manage and match supply and demand. The increased use of temporary or specific purpose contracts can help business through busy periods where they know they will only need that role for a certain period of time. In the event that you have a permanent role popping up in a particular department down the line, you will also have a pool of staff who have had experience in the business and in the department to seek out. This can ultimately reduce the costs associated with recruiting and training in permanent staff.
2. Managing Expenses
Employee expenses (e.g. travel, food etc.) can be costly for employers if not managed correctly. Employers are encouraged to have a clear policy which sets out the circumstances in which a claim can be made. In addition, is there a cheaper alternative? For example, can that driver take a route that does not involve two tolls? Is there a cheaper flight alternative?
3. Managing Annual Leave
The vast majority of employers are operating workloads with minimum staffing levels and a major headache can arise when several employees request leave at the same time or, more disruptively, when several employees have excessive leave days remaining at the end of the year. Employers are advised to take control off annual leave through a clear annual leave policy which will in turn ensure that the business is effectively staffed throughout the year. One useful tip is to require employees to take a minimum number of days leave per quarter and, if they fail to apply, then the employer can apportion leave to that employee by giving them one month’s notice. This will ensure an even spread of leave days from January to December.
4. Managing Absenteeism
Absenteeism can have a significant cost for businesses in terms of lost days and reduced productivity. A Survey on Workplace Absence in Ireland carried out by Graphite in 2011 showed that one-third of employers had changed their absence management practices in order to reign in the associated costs. This is not surprising when you consider that reports show that absenteeism costs the Irish economy as much as €560 million per annum. Some simple tips for managing absenteeism and reducing costs include tightened policies, improved monitoring, and return-to-work interviews.
5. Managing Overtime
Several employers have contacted Peninsula to outline that they have difficulties with their overtime bill. Employers can effectively reign in these costs by specifically instructing staff that only ‘manager approved overtime’ can be worked. Employers are encouraged to have an express policy on this and implement it strictly across the board.
6. Effective Policies
An employer cannot underestimate the importance of having effective policies to deal with all eventualities. We have considered annual leave, absenteeism and overtime above but have you got a policy to cover scenarios where you can’t provide work due to inclement weather? What about a flexible working policy or a lay-off/reduced working hour’s policy to deal with temporary shortages of work? With effective policies in place an employer can look to effectively manage costs with minimal risk and without having to take the dreaded step of implementing redundancies.
There are many options that can be tailored to suit your business needs. If you feel any of the above measures could help your organisation, then please do not hesitate to contact the 24 hour Advice Service on 01 855 50 50 and we will guide you through any changes you need to implement.
