As it pertains to your business, the term “efficiency” should never be overlooked. From upper management to entry-level employees, promoting an efficient work environment is critical to success and profitability.
The importance of being efficient as it pertains to cost effectiveness and maximizing profit margins cannot be overstated, but still, many entrepreneurs struggle to build an efficient business.
Why is increasing efficiency such a problem?
Many successful business owners agree that it is simply because they don’t know how to find viable solutions for cost cutting in seemingly obvious places.
Save Money on Staffing and HR
One such area is human resources. Business owners are often willing to invest significantly into HR activities, as building a strong team is generally considered to be a cornerstone of any business’ internal operations.
However, “One of the greatest expenses of any company is its people. To reduce your burn-rate — and effectively bootstrap — you need to consider ways to save money on staffing,” according to Early Growth Financial Services founder and CEO David Ehrenberg (Built In Chicago).
Thankfully, human resources activities don’t need to be a costly venture. Although it may seem like a daunting task, creating a more efficient human resources strategy for your small business is a relatively simple, yet often-overlooked, method to improve profitability.
1. Evaluate each HR activity closely.
Many small and mid-sized businesses have gradually built their HR capacity over time as they have grown. Unfortunately, this can prove to be a large and, often, unnecessary investment.
While employee satisfaction, compliance, payroll and other major HR elements are essential to cultivating a productive workplace, these activities should be periodically reassessed to ensure their effectiveness.
2. Optimize through integration.
The process of “optimization through integration” begins with information gathering and evaluation. Ask yourself, “Is every single one of my human resources activities operating cost effectively?” You may find that there are money-saving alternatives. If so, don’t overlook them.
Many entrepreneurs discover that a HRIS (Human Resource Information System), once only available to enterprise-level companies, can provide an optimal solution to an otherwise expensive problem.
HRIS is essentially a software solution designed to electronically automate and manage HR, payroll, management and accounting activities. Integrated and affordable cloud-based HR solutions on the market today eliminate guesswork and combine all the pieces of the HR puzzle. Save money, remaining compliant and retain a happy workforce.
3. Implement an HR strategy.
Once you’ve created and evaluated your human resources plan and selected an all-in-one HRIS software system (which will help you save money without sacrificing productivity) – it’s time to put your improved strategy to work!
Integrating HRIS software into existing business operations is an easy process. In fact, some top HRIS providers will offer HR consulting services to ensure a smooth internal transition.
By using this guide as a blueprint to build a more efficient HR team, entrepreneurs can eliminate extraneous costs and simplify one of the most complex challenges it faces – managing people. By utilizing approachable, intuitive technology to streamline your company’s daily operations, you are on the right track to becoming a truly successful (and efficient) entrepreneur.
This article has been edited and condensed.
Jim Pugliese, CEO of CheckPoint HR, is an HR expert, insurance industry executive and business leader with over twenty years’ experience in building national brands and leading corporate growth initiatives that included strategic acquisitions. He applies his knowledge of human resources and insurance to help employers of all sizes operate more efficient and effective HR teams. Connect with @checkpointhr on Twitter.
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