Actions Businesses Can Take to Free Up Finances for Payroll

The effects that changing finances can have on a business may not be felt by every employee immediately, but for many companies, human resources departments are the first to notice changes. 

For the many HR departments in charge of meeting payroll and hiring new staff, tightening budgets can create a variety of problems. From difficulty actually meeting payroll, to postponing new hires, HR professionals often find themselves in tough situations. 

Despite this common problem, there are often a variety of solutions businesses can employ to free up extra resources and save money. Let’s examine a few unconventional methods for freeing up finances so that HR departments can meet or expand payroll. 

Negotiating Business Utilities

Many businesses give little thought to the cost of their utilities: after all, one can’t negotiate over whether or not utilities are needed in the workplace. However, businesses can negotiate over the prices they are charged for utilities – with the outcome often being a favourable one that saves businesses money.

Enter services such as https://www.utilitybidder.co.uk/. Business utilities comparison shopping can be conducted in mere minutes, with quotes furnished from a variety of utility companies. In the case of Utility Bidder, quotes for business water, business electricity and business gas are provided, resulting in savings for businesses up to 45% of their utility bills. Given that the average business spends around 5 percent of its budget on utilities, this one simple solution can potentially free up 1-2 percent of overall spending for payroll operations.

Embrace Telecommuting

The amount of dedicated employee space in a business setting certainly can affect costs – particularly for those who lease office space. Even for companies that own their properties, heating and cooling larger areas requires more energy. Ultimately, many executives are looking for ways to reduce the number of square metres per employee, with a target goal for many being 9-10m². 

The easiest way to accomplish such is through embracing telecommuting. As technology continues to free workers from the proverbial chains of their desk, it also frees employers to utilise smaller and smaller spaces for day-to-day operations. Given that rent can be a huge cost factor for many businesses – particularly smaller ones – it is worth assessing whether the current office space can be reduced in the pursuit of freeing up finances to meet or expand payroll.

Invest in Pre-Owned Equipment

The first instinct of many business is to buy new equipment, often at prices well above their actual value. Given that many forms of electronic equipment quickly depreciate in value, purchasing pre-owned equipment that has been cared for can often result in major savings over an extended period (for tips on calculating specific equipment value depreciation, click here). 

Items such as computer peripherals, refurbished mobile devices, company vehicles and furniture are known not to hold value. By investing in these types of purchases rather than their newer equivalents, businesses can reduce procurement costs in these areas by as much as 50 percent without any diminished functionality. 

Short-term issues with payroll can often resolve themselves, but businesses need not wait to free up finances for more manoeuvrability with respect to raises, new hires and general payroll. These three tips can help re-assess the situation of existing businesses, free up additional revenues, and guarantee that no HR department is ever caught in a sticky situation with regard to meeting obligations.

 

James Daniels is a freelance writer, business enthusiast, a bit of a tech buff, and an overall geek. He is also an avid reader, who can while away hours reading and knowing about the latest gadgets and tech, whilst offering views and opinions on these topics.

WOH 67: Filling Critical Skills Gaps for Today’s College Graduates

Thousands of students are graduating every day with a lack of understanding of the basics of how to interact professionally at work. Everything from etiquette to basic resume preparation is missing from the educational curriculum, so how can we solve this problem?

In this episode Ben speaks with John Nykolaiszyn, the Director of the Office of Business Career Management for Florida International University. John is working with the university to experiment with radical changes to the educational institution’s approach to student preparation, and early results are positive. Listen in to learn more about how this approach is changing the lives of students and graduates for the better.

To learn more about John Nykolaiszyn please e-mail: jnykolai@FIU.edu or connect with him on LinkedIn: https://www.linkedin.com/in/jnykolai

 

data driven people oriented

The Best HR Leaders are Data Driven, People Oriented

data driven people orientedOne of the phrases I’ve found myself repeating more and more often of late is this: data driven, people oriented. 

When I’m speaking to audiences, I share the story about how I *accidentally* insulted my wife during childbirth to illustrate this concept.

Yes, really.

It makes a great point that we can’t just be data driven or we lose sight of the people behind every metric and number. If you want to hear me tell the story live during the first ever episode of the podcast, you can check that out here.

The point is that as HR and talent leaders, we have two things that we need to keep in mind:

  • People: we are the “people people” in the business. We need to know the people better than anyone else. Most of us got into HR because we like helping others and because that service brings us joy. However, we also have to know…
  • Data: for far too long HR has said, “I want respect! I want to help the business, but they won’t invite me to the meeting. How do I get some credibility?” Data is the answer to that. Evidence matters.

Hence the phrase data driven, people oriented. We can’t go too far into either side or we create nightmare scenarios.

  • All people, no data: we are soft and squishy and nobody cares what we have to say because all that matters are hugs and rainbows.
  • All data, no people: we are hard-charging, ROI-driven monsters without a single concern for the people at the other end of our decisions.

Balancing both aspects helps you to not only have a voice in the business and with your leadership team but also helps to ensure that your voice is being used to advocate for the workforce. Bringing data and evidence to the conversation in the form of HR analytics creates a more credible, valuable conversation. And doing so on behalf of the employees is critical.

Even if you didn’t get into HR because you love data and numbers, you need to learn to speak the language of the business or risk being ignored, shut out, and forgotten when all of the important decisions are being made in your company.

Who’s with me?

WOH 66: Trends Driving 4x Growth in HR Analytics Teams

Employers have increased their focus on measurement in recent years with a 4x growth in the number of companies with an HR analytics team. Why this relatively sudden change, and what can it tell us?

In this episode, Ben interviews Matt Jackson, VP Client Solutions at Thomsons Online Benefits about new research the company has done on analytics and data usage within HR. The conversation includes practical insights into how HR teams can get started with data as well as what it takes to build or buy your first analytics subject matter expert.

To learn more about Thomsons visit https://www.thomsons.com/

5 Rules for Hiring A.I. and I.T. Talent

The quest to hire developers, data scientists, and technology engineers is more competitive than ever before. It seems as though organizations in almost every industry need to grow their teams due to the ever-increasing need for a strong digital presence, apps, in-house I.T., tight cyber security, and other critical tech and A.I. based roles.

“With all of the tech startups and niche pharma companies popping up all over the country, it’s no wonder there’s much more demand for A.I and I.T specialists than supply. It poses a real challenge for hiring managers,explains Sarah Groom, Director at Groom & Associates.

If you find attracting talent for these hot fields seems nearly impossible, your recruiting tactics might be in need of some updating. For a better shot at attracting A.I and I.T talent, consider these five rules. Continue reading

WOH 65: Delivering HR Technology for 75,000 Global Employees at Emerson Electric

Recently Ben had the opportunity to attend Oracle Open World and speak with some amazing HR leaders at companies doing business across the globe. This is one of the interviews from that event. Ben interviews Jim Rhodes, VP of HR Information Systems at Emerson Electric, a firm with a global workforce of more than 75,000. The conversation explores how to build a business case for HCM technologies, what it takes to create a strong selection team, and more. 

This episode is sponsored by PeopleStrategy