Efficiencies and how to find them – an HR guide for employers

Employment costs are rising, and hidden costs such as costs arising from employment litigation are set to increase too, both thanks to our new government.

For many employers this comes on the back of rising costs stemming from Brexit and so it’s no wonder that employers are looking to reduce staff-related costs wherever they can.

A couple of weeks ago I was at a restaurant where robot waiters trundled up and down, some carrying new servings to tables, others receiving dirty plates, cutlery and glasses from waiting staff clearing tables.

The human staff were able to attend to tables more efficiently, as they no longer had to crisscross the restaurant floor taking things to and from the kitchen. Service was good…and needed less staff, a win-win for the restaurant owners.

When costs increase, business owners need to find economies. Sometimes there will be creative solutions, technological solutions or difficult decisions to be made, even exiting certain labour-intensive activities in favour of other options.

Outsourcing HR and other support services

I’ve been in HR for 35 years, 23 of those in outsourcing, and it still staggers me why employers with less than 100 staff feel the need to employ their own HR Manager/Advisor.

Outsourcing costs for a medium sized enterprise could cost less than £20K, reduces headcount & generally provides access to a better range of services conducted by better trained people.

Other support services should be looked at too – senior finance, payroll, procurement etc. can generally all be outsourced, leaving just the administrative tasks behind (many of which themselves can be automated these days).

Investing in technology to reduce labour costs

The restaurant’s robots represented an investment in the industry, but that investment will be recouped soon enough – if it enabled 2 less waiting staff per shift across the week, the savings would quickly add up. And robots don’t sue their employers….yet!

Trade press and conferences may help employers keen to keep tabs on rapidly developing technologies and their application in the workplace in their sector.

Artificial Intelligence is already having a significant impact on jobs, particularly in call centre environments, with Octopus Energy revealing (as far back as 2023) that AI was doing the work of 250 people, and getting better customer approval ratings in the process.

Keen to learn more? For expert HR advice, get in touch with our team.