HR News & Articles
Cutting the cost of HR
Because of the administrative nature of the HR role, the HR department within many organisations is often seen as an overhead due to the fact that they don’t directly generate any revenue.
The HR department still plays and extremely important role with the organisation and the challenge is to find ways to maximise the return on investment for a department that costs the business money but doesn’t directly generate any income.
The key to achieving this is to streamline their processes and implementing a Digital HR Software system is the best way to manage this. HR staff need a software system that can take away a great deal of the manual workload by automating many of the manual processes therefore reducing the cost of HR.
One of the most time consuming process in most companies is absence management. Many companies still use a paper based holiday booking system, whereby the Employee fills in a holiday form and gets their manager to authorise. This is then passed onto HR to record on their HR Software system. This process whilst sounding relatively straight forward is actually extremely time consuming and in-efficient.
An example of these savings can be demonstrated using the following example.
The People Inc Web Module (for 200 employees) when purchased with People Inc costs over 5 years around £6000. Based upon the figures in the tables below, the time saved over the same 5 year period by the People Inc Employee Self Service Module equates to almost £50k (just on absence management alone).
Current Manual costs
Costs using People Inc Employee Self Service Module
Total Savings based on 200 employees
People Inc is a perfect example of where digital HR can save HR departments a great deal of money by providing the tools to help them become more efficient and cost effective.
Not only can companies save a great deal of time and money by implementing Employee Self Service to reduce costs of managing absence, but because People Inc has Recruitment, Absence Management, Training Management, Fleet Management etc built in as standard at no extra cost, that you can also save a great deal of money on Licensing and Support contracts.
For example, if your organisation has a system to manage Personnel Details and another to manage recruitment and yet another to manage absence or training or fleet etc, it is highly likely that you are paying for several licences for these systems, and also varying levels of annual maintenance fees by consolidating these activities into one central and secure system.
agathonhr provide easy to use, all-in-one HR Software, designed to be flexible and affordable. If you would like more information about how agathonhr can help helping your staff save time by transforming the way you manage HR, contact us on 01242 663974 or firstname.lastname@example.org