In times of low growth, reducing costs is a top priority. Make informed cost reduction decisions that promote HR’s role as strategic partner.
Uncertain and fluctuating economic environments have pushed many organizations into mandating cost-cutting measures to maintain organizational viability. HR is not exempt from these mandates and must ensure strategic contributions are not compromised throughout this process.
Success in reaching the cost reduction mandate does not necessarily equate to success for HR. Some proposed initiatives will result in unmet organizational and/or HR objectives. HR leaders that communicate the risk of unmet organizational objectives to executives reinforce HR’s strategic contribution to the organization, manage expectations for HR service level agreements, and promote optimal HR workloads.
Impact & Result
Successful cost cutting entails swiftly identifying short-term solutions across HR initiatives, HR workforce, and vendor management, while minimizing adverse effects on long-term organizational and HR strategic goals.
Research & Tools
1. Determine cost reduction initiatives
Document the details of the cost reduction mandate & the associated
negotiable and nonnegotiable constraints and the uncovered cost reduction
initiatives across the three areas of focus.