Do you know the cost of human resources to your company? If not, then it is time to find out. Human resources can be a huge expense for any company, sometimes without even realizing it. This article will go in-depth into what HR entails, how much it costs, and some tips on handling these expenses. Read on for more!
What is the cost of human resources?
The cost of human resources is the total amount of money that a company spends on employee-related costs. No matter how you choose to handle the cost of human resources, it is important to remember that they are an essential part of any business. Employees are necessary for companies to function. They help the company run, and they offer services to customers that will drive revenue for your business.
How Much Does HR Cost?
Human resources expenses vary across industries. It is also dependent on several factors, including the organization’s size and location. Examples of HR costs include wages, benefits, training and development, retention, and recruitment costs. There are several ways to handle the cost of human resources.
When it comes to hiring new employees, the cost of recruiting can quickly add up. Here’s a breakdown of what those costs typically include and some tips for saving money on your recruitment efforts.
Job postings: According to Glassdoor, the cost of posting a job for a 30-day period is $395.
Job fairs: This varies depending on location and size, but it’s important to keep in mind when planning your recruitment efforts. You may want to avoid small or local events if they don’t impact you as an employer. Instead, look at larger industry conferences where more people looking for work typically attend so you can get better results from these types of recruiting costs over time. If you do decide to go with a smaller event, though, be sure to check out how many candidates will show up before signing up just based on the number who say they plan on attending online – this could save you some money.
Training and development costs
According to the Association for Talent Development, employers spend an average of $1252 per employee on training and development. This amount can vary significantly depending on the type of training required, the company’s size, and other factors. However, it’s important to remember that investing in your employees is essential for their success – and your own. Working with a professional trainer or consultant can help you get better results from your investment while also freeing up time for managers and supervisors to focus on other tasks.
Overtime Pay
The average cost of overtime pay in the United States is between $20 and $30 per hour. This means that if an employee works more than 40 hours a week, you’ll end up paying them at least this amount over their regular hourly rate (and often, it will be even higher depending on factors like benefits). If you plan to hire employees who work overtime regularly, strategies for lowering recruitment costs can help offset these extra expenses. Other expenses include:
- Employee turnover costs
- Health insurance premiums
- Retirement plan contributions
Functions of Human Resource Management
The primary functions of the HR include:
- Creating and managing a qualified workforce
- Developing and administering compensation, benefits, and work rules
- Ensuring legal compliance
- Providing employee training
- Managing employee records
- Developing and managing HR policies
The Benefits of Human Resources
The HR department plays a significant role in the growth of an organization. Their major benefits include:
The role of the Human Resources Department is very much important for an organization as it helps in achieving organizational goals by performing various activities like recruitment, training & development, employee relations, performance appraisal, etc.
The HR department also helps in motivating the workforce to achieve set objectives through different motivation techniques that include both monetary incentives & non-monetary rewards such as appreciation letters or commendatory certificates/ trophies, which are given to deserving staff members regularly for their good work done during a year/month/quarter/week against respective targets fixed by the management.
Another benefit of the HR department is that it makes sure that the workforce is healthy by providing the necessary health facilities like free medical checkups, discounted rates on medicines, etc., from time to time and creates a conducive work environment in which employees feel happy and satisfied. This ultimately helps increase the efficiency and productivity of employees, which finally benefits the organization as a whole.