Companies spend about 5% of their annual budget on the HR department alone with 3 major targets – reduction in employee attrition, increased employee productivity and rise in candidate offer acceptance rate.
So how should HR leaders go about it? What is the determining factor that makes good employees stay back, new employees to choose you over others and rise in productivity of exiting employees?
Should it be about a better work culture or better payouts or both?
Inspiring startup work culture
There are many things that the growing startup culture has taught us. With open offices, dissolution of cubicles, a flat hierarchy, easily approachable leadership, no constraining dress codes and several more such unconventional measures have shown us that traditional companies need to evolve the way they deal with employees.
Infact, for HR leaders who once thought that a conservative work culture can be easily be compensated with higher payouts saw their beliefs rather shattered. Employees migrated from large corporations to startups, at the same or less pay but for an open work culture.
Granted, that not every industry has the same needs, nor is it viable to implement the same ideas across the board. So what do you do in this case? Spending resources based on assumptions of what may or may not work?
Replacing guesses with data-oriented decisions
When it comes to your human resource spending, even one guess is too much. Instead several companies today are doing what is practical, engaging and insightful – surveying their employees.
Employee engagement survey platform – QuestionPro’s Workforce, is designed to get you data-oriented answers to the most pressing questions of Human Resource spending. When you know exactly what the pain points are, what makes them leave your company, what they expect in order to stay and what would help them become more motivated and productive – you can focus on precise solutions to address their issues more effectively.
This is also what is called smart spending – when resource allocation is no longer an expense but an investment.