Tighten your human resource spending
Human Resource Management is undeniably a key part of any fully-functioning business. But just because HR is necessary does not mean it is exempted from cost cuts when your company needs to tighten its budget. Here are 4 ways you can save on HRM spending:
Source for relevant grants
No matter what industry your business is from or what area it is looking to improve, chances are there’s a grant suitable for you. This is especially true for initiatives like the Capability Development Grant (CDG), which covers a wide range of business operations ranging from technological innovation to human capital development.
Human resource departments looking to improve their workforce with training, sharpen their performance management or optimise manpower planning can get up to 70% of such project costs defrayed under the CDG.
Reduce staff turnover
Staff turnover can also cost an SME in terms of time and reduced customer satisfaction. Time that could be spent getting work done is now spent sourcing for and training new hires. If your business is client or customer-facing, losing an experienced employee could also put a dent in the quality of your customer service, even risking customer loss.
One way to improve employee satisfaction is to engage with SPRING HR consultants, like Sam Chee Wah, General Manager of Feinmetall (a local manufacturing business) did. These consultants helped Mr Sam’s business increase staff loyalty and reduce turnover rate.
The measures introduced include a 360-Degree Appraisal practice, where employees are appraised by their colleagues. “This gives staff a fuller understanding of their performance,” says Mr Sam.
A job grade system was also established, allowing employees to understand their job grade, scope and salary cap. “They can then understand that if they want to increase their salary, they need to continue upgrading themselves,” Mr Sam explains.
Another way to reduce turnover rate is to groom in-house talent. Sending your staff for training courses in areas like equipment handling and customer service can enhance performance and morale. Check if your courses can be claimed under the Productivity and Innovation Credit scheme to enjoy up to 400% of tax deductions or allowances on your training expenditure.
Harness shared services
Since its introduction in 2015, SPRING’s HR shared service initiative has helped to improve SME HR operations, opening up a shared pool of resources. Such resources include one-to-one advisory sessions, access to HR services and systems, as well as further opportunities to hone their capabilities with workshops. The initiative also provides funding for up to 70% of eligible HR expenses, even covering a one-time set up cost comprising needs analysis and enhancement of existing HR regulations.
Asia One Business experts predict that the program will help companies focus their efforts and finances on boosting operational efficiency.
Automate Your Payroll
According to the Harvard Business Review, “payroll costs tend to be the lion’s share of the bottom line for most businesses”. Although this expense is a necessity for your business, what isn’t necessary is the hidden costs that come with processing your payroll. This includes the penalties that come with breaching the latest payroll and key employment term regulations, which can rake up to $200 per employee or occurrence2. Automated solutions can cut such charges by a large margin.
“spend even more time on the human and
strategic aspects of their work 3”.
As HR expert Matt Stratz points out, replacing regular administrative work with automated solutions essentially leads to a smarter, more efficient business. It can help reduce the chance of human error, and ensure that your business’ HR finances are utilised in the most effective way possible.
StarHub ePayroll is an automated solution that helps your business comply with MOM regulations. The solution not only helps you create itemised payslips, it automatically updates and calculates the latest CPF rates, reducing your chance of error. In addition, its pay-per-user model lets you minimise spending as you spend only on what you need, based on the number of employees you have.