Changing demographics of the workforce A more highly educated workforce Layoffs and downsizing Technology used, such as HR databases Increased use of social networking to distribute information to employees For example, the recent trend in flexible work schedules allowing employees to set their own schedules and telecommuting allowing employees to work from home or a remote location for a specified period of time, such as one day per week are external factors that have affected HR.
Next If you were to ask most business owners what their biggest challenges are, they will likely tell you that cost management is a major factor to the success or failure of their business.
Consider the expenses that involve the people part of any business: Health-care benefits Hiring process costs And many more… These costs cut into the bottom line of any business. The trick is to figure out how much, how many, or how often benefits should be offered, without sacrificing employee motivation.
A company can cut costs by not offering benefits or k plans, but if its goal is to hire the best people, a hiring package without these items will most certainly not get the best people. Containment of costs, therefore, is a balancing act. We will discuss ways to alleviate this concern throughout this book.
For example, there are three ways to cut costs associated with health care: This equals roughly 83 percent and 73 percent of total health-care costs for single employees and employees with families1, respectively. One possible strategy for containment for health-care plans is to implement a cafeteria plan.
Cafeteria plans started becoming popular in the s and have become standard in many organizations Allen, This type of plan gives all employees a minimum level of benefits and a set amount to spend on flexible benefits, such as additional health care or vacation time.
It creates more flexible benefits, allowing the employee, based on his or her family situation, to choose which benefits are right for them.
For example, a mother of two may choose to spend her flexible benefits on health care for her children, while a single, childless female may opt for more vacation days.
In other words, these plans offer flexibility, while saving money, too. Another way to contain costs is by offering training. While this may seem counterintuitive, as training does cost money up front, it can actually save money in the long run.
Consider how expensive a sexual harassment lawsuit or wrongful termination lawsuit might be. For example, a Sonic Drive-In was investigated by the Equal Opportunity Employment Commission EEOC on behalf of seventy women who worked there, and it was found that a manager at one of the stores subjected the victims to inappropriate touching and comments.
Some simple training up front costing less than the lawsuit likely would have prevented this from happening. Training employees and management on how to work within the law, thereby reducing legal exposure, is a great way for HR to cut costs for the organization as a whole.
The hiring process and the cost of turnover in an organization can be very expensive. Turnover refers to the number of employees who leave a company in a particular period of time.
By creating a recruiting and selection process with cost containment in mind, HR can contribute directly to cost-containment strategies company wide. By hiring smart the first time, HR managers can contain costs for their organization.
Reducing turnover includes employee motivational strategies. In a survey reported on by the Sales and Marketing Management newsletter3, 85 percent of managers say that ineffective communication is the cause of lost revenue.
E-mail, instant messaging, text messages, and meetings are all examples of communication in business. An understanding of communication styles, personality styles, and channels of communication can help us be more effective in our communications, resulting in cost containment.
In HRM, we can help ensure our people have the tools to communicate better, and contain costs and save dollars in doing so. One cost-containment strategy for US businesses has been offshoring.CHAPTER 1 Introduction to Human Resource Management CHAPTER OBJECTIVES After reading this chapter, you should be able to: timberdesignmag.comtand the meaning of human resources timberdesignmag.com the objectives, scope and functions of human resource management (HRM) timberdesignmag.comentiate between HRM and personnel management .
chapter 1. MARKETING: CONNECTING WITH CUSTOMERS. chapter OVERVIEW. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Study Flashcards On Chapter 1 - Managing Strategic Human Resources Today at timberdesignmag.com Quickly memorize the terms, phrases and much more.
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Aboriginal and Torres Strait Islander peoples are the first peoples of Australia. They hold a unique place in Australian history and continue to make an essential contribution to our ongoing national development and identity.
Our Common Future, Chapter 4: Population and Human Resources - A/42/ Annex, Chapter 4 - an element of the body of UN Documents for earth stewardship and international decades for a culture of peace and non-violence for the children of the world.
Global Journal of Human Resource Management Vol No. 2, pp. , March Published by European Centre for Research Training and Development UK (timberdesignmag.com).