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How CFO’s can Increase Savings on HR Costs with Automation

How CFO’s can Increase Savings on HR Costs with Automation

As CFO, identifying financial efficiencies across the organisation is no doubt on our your key priorities. These days, efficiency and productivity are top of mind for all C-Suite executives and many companies are adopting automation technology across different areas of the business.

The ROI of HR automation represents significant financial benefits for a company’s bottom line, and just about every HR function can be streamlined with the use of automation software. The potential for organisations to save several hundred thousand dollars per year is hard to ignore.

Recruitment – Save $47k per annum

Recruitment is often a labour intensive activity and it can take up to two months to find and hire the right employee. Each vacant position can cost a company upwards of $500 a day, resulting in thousands of dollars being spent throughout the recruitment process. By adopting recruitment automation, the HR team can focus on streamlining recruiting practices, reducing the time to hire and reducing the amount of time a vacancy remains open. Automation may also reduce or eliminate the need for third-party recruitment consultants. Clients who have automated the recruitment process have saved $47k a year.

Onboarding – Save 188 hours per annum

A structured and effective employee onboarding program is crucial to retaining the top talent recently brought into the organisation. In our previous post, we found that more than half of new hires leave within the first 18 months, often as a direct result of a poor onboarding experience. This costs the business a small fortune in additional recruitment costs, loss of productivity and an increase in time for new employees to become productive. By adopting onboarding automation, our client reduced the time HR spent on onboarding activities by 188 hours a year. That’s 188 more hours HR can spend adding value elsewhere.

Learning – Save $430k per annum

Being able to provide learning and training opportunities to further develop employees is a key component to any successful organisation. Increased skills and capabilities increase employee value to the company, as well as increasing their engagement and productivity. By adopting automated online learning, money is saved through reduced time away from work, travel costs, facilitator, and training venue fees. Our clients have saved $430k a year.

Performance –  Save $486k per annum

Very few employees look forward to an annual, paper-based performance review process. Employees, managers, and HR spend a huge number of hours on manual performance processes and often, the results do little to drive business strategy and improvement. By automating the performance review process, there are significant time savings as well as paper savings. Streamlining the process also has the added benefit of allowing more efficient data analytics that can be used to more accurately forecast. By automating performance our client saved $486k a year.

HR Admin – Save $62k per annum

HR teams are often lean, but spend many hours in the manual management of payroll and leave management. Reducing the time spent on these activities not only frees up HR time to spend on other important tasks but also represents a saving of $62k a year.

The adoption of HR automation technology could save your organisation hundreds of thousands of dollars per year and have a clear impact on your organisations bottom line. By working closely with the HR department, CFO’s can help drive these efficiencies and deliver significant ROI for your organisation.