Rethinking Cost Management: Strategies for a Resilient Workforce
In this episode, Kate Bravery, Talent Advisory Leader, hosts a discussion with three Mercer experts, Will Self, Katerina Psychopaida and Sean Connelly, on managing costs in a challenging economic environment. They explore the importance of strategic, data-driven decision-making to uncover cost-saving opportunities without sacrificing employee experience or engagement. They emphasize the value of intentional cost containment strategies, such as optimizing vendor relationships, reducing organizational bloat, and leveraging AI and data science to enhance workforce planning and team composition. Additionally, they highlight the critical role of continuous, purposeful employee listening through innovative approaches like digital focus groups and passive data analysis, especially during turbulent times when traditional surveys may fall short.Interesting momentsCost vs. retention?Many organizations are expressing the same concerns: the urgent need to cut costs while also focusing on attracting and retaining talent. By actively listening to employees and better understanding their needs, companies can reallocate resources more effectively. This approach can lead to cost savings and increased employee engagement. Create psychological safetyIn times of significant transformation, employees want to align themselves with a company they believe will be here for the long term. Therefore, increased transparency about how business fundamentals have shifted and openness about the challenges ahead can help foster trust. Involving the workforce in contributing to solutions can actually unite everyone. Finding balanceThe key question is: what combination of offerings are employees most appreciative of? It’s about evaluating the entire package and looking for areas where you can achieve significant savings while still maintaining, or even boosting, overall employee preference for the organization. This approach ensures that you’re better meeting employees’ needs, leading to a more engaged and satisfied workforce.HR as an investmentWe should all be advocating for a mindset shift within HR from viewing it as a cost center to recognizing it as an investment in our people assets. This shift is fundamental because it transforms the conversation into one focused on return on investment. If we start considering every HR initiative and program as an investment that yields a measurable financial return, we can begin to optimize our efforts more effectively. This is something that is often lacking in practice today.https://www.mercer.com/insights/people-strategy/future-of-work/podcast-new-shape-of-work/
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