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Optimize HR Department Costs

Think critically about how to manage costs to be well positioned to ensure organizational budgetary goals are achieved.

  • HR leaders not only advise senior leaders on possible organization-wide cost-cutting measures that impact talent and the related risks but also must also look within their own departments to optimize costs at the same time.
  • This is challenging, particularly when forced into a reactive mode that requires quick action with little time for reflection, and cost optimization becomes a lower priority than cost cutting.

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Our Advice

Critical Insight

  • Working with senior leaders on organization-wide cost-cutting initiatives is typically the dominant focus, but HR needs to prepare for cost optimization initiatives within its own department as well to ensure organizational budgetary goals are achieved while also positioning the HR department for a quick recovery.

Impact and Result

  • Ensure HR is set up for success by using McLean & Company’s methodology to build an action-oriented HR cost optimization roadmap and communication plan based on your HR department’s specific circumstances and timeline.
  • Assess three broad cost optimization categories for your HR department – HR initiative prioritization, vendor management, and HR workforce optimization – to help focus on specific, organizationally aligned cost optimization opportunities.

Optimize HR Department Costs Research & Tools

1. Plan and define goals

Determine the organization’s operating context and set HR cost optimization goals.

2. Determine cost optimization initiatives

Identify and prioritize cost optimization initiatives within the HR department.

3. Prepare an action plan

Create a roadmap to implement the finalized cost optimization initiatives.

About McLean & Company

McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

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Speak With An Analyst

Get the help you need in this 3-phase advisory process. You'll receive 3 touchpoints with our researchers, all included in your membership.

Guided Implementation 1: Plan and define goals
  • Call 1: Discuss the organization’s business context, HR’s response mode, and cost optimization constraints, and set HR’s cost optimization goals.

Guided Implementation 2: Determine cost optimization initiatives
  • Call 1: Brainstorm cost optimization opportunities within the HR department.

Guided Implementation 3: Prepare an action plan
  • Call 1: Plan for the implementation of cost optimization initiatives.