There can be no debate around the rising costs of doing business, in the United States and across the world. Healthcare costs, salary, and a slew of other issues that tack on an extra couple of dollars eventually add up to huge headaches for businesses of all types. According to Human Resource Executive Online, all of these human resources costs come together to make up nearly 28% of total business expenditures in the United States.
As Business Insider writes, this is a time of unsustainable profit margins; even a slight economic shift could mean dire financial consequences. Finding ways to reduce overwhelming HR costs is the key to improving sustainability and weathering any storm that might come your way. Modern HRMS online solutions may be just the thing for reducing costs in three important key ways.
The Cost of Training
Training is one of the biggest costs to any business, especially those that are known for high turnover rates. Consider, the average cost of hiring a new employee, according to The Houston Chronicle, ranges from $5,505 to $9,444. Even if you have a core group of employees and a low turnover rate, you’re still going to spend $1,200 per year on training each of them, according to statistics from Investopedia. With HRMS online solutions, you can set up portals to designated employee training computers. By giving workers access to these employee self service stations, you can greatly reduce the HR man-hours needed to get each employee up to speed.
The Cost of Absenteeism
According to Gallup, absenteeism costs American businesses nearly $153 billion every year, regardless of whether the absenteeism is planned, caused by sickness, or a result of poor work ethic. The best HRMS solutions allow businesses to manage schedules in the event of an employee taking vacation, easily find who has time-off to fill a shift, and other methods of reducing the staggering costs of absent employees.
Increase Compliance, Reduce Errors
HR World writes that some of the biggest dangers for businesses trying to stay on budget is input error, data duplication, and subsequently, failing to meet state and federal compliance standards. Consider the healthcare industry; a single input error or mismanagement of data can cost healthcare professionals a minimum of $50,000 in fines for violating HIPAA regulations, according to the American Medical Association.
HR errors can also add to employers’ healthcare woes. As Workforce points out, healthcare costs for businesses are expected to increase by 6.3% throughout 2013. Duplicating plans, signing people up for the wrong plans, and so on can lead directly to even higher costs, for both your business and employees. HRMS online allows HR professionals to easily catch these errors and correct them at a moment’s notice.
There can be no doubt that the cost of doing business is going up. However, by using HRMS online technologies, your business can reduce its costs, improve sustainability, and be successful going forward.