One of our European Client – A rapidly growing tech start-up specializing in AI-powered marketing solutions. They had experienced explosive growth in the past three years, doubling their workforce. However, their Management struggled to keep pace, leading to escalating costs and inefficiencies.
Case: Management approached to Evosyst’s team with concerns about their rapidly increasing HR costs. Their spending on recruitment, benefits administration, payroll processing, and HR technology had ballooned, impacting profitability. They lacked clear visibility into their HR spending and struggled to measure the return on their HR investments. Employee morale was also declining, with complaints about slow response times from HR and a lack of personalized support.
Our Investigations: Evosyst conducted a comprehensive audit of their HR operations. Our investigation included:
- Cost Analysis: We analyzed their HR budget, identifying areas of overspending and potential savings. We discovered significant redundancies in their recruitment process, with multiple departments posting similar job openings on different platforms. Benefits administration was also fragmented, leading to higher administrative fees.
- Process Mapping: We mapped their key HR processes, including recruitment, onboarding, performance management, and payroll. This revealed bottlenecks and inefficiencies, such as manual data entry, paper-based processes, and a lack of integration between HR systems.
- Technology Assessment: We evaluated their existing HR technology stack, finding it to be outdated, fragmented, and poorly utilized. They were paying for multiple systems that didn’t communicate with each other, leading to duplicate work and data inconsistencies.
- Employee Surveys & Interviews: We gathered feedback from employees and managers about their experiences with HR. This highlighted concerns about slow response times, lack of transparency, and a perception that HR was not a strategic partner to the business.
Root Causes: Our investigation revealed several key root causes contributing to the escalating HR costs:
- Lack of Strategic HR Planning: Client had not proactively planned for the HR implications of their rapid growth. They were reacting to problems rather than anticipating them.
- Inefficient Processes: Their HR processes were largely manual, paper-based, and fragmented, leading to inefficiencies and increased administrative costs.
- Underutilized Technology: They had invested in HR technology, but it was not being used effectively, resulting in duplication of effort and wasted resources.
- Lack of Metrics and Reporting: They lacked clear metrics to track HR performance and measure the return on their HR investments. This made it difficult to identify areas for improvement.
- Decentralized Recruitment: Different departments handled their own recruitment, leading to duplication of efforts and inconsistent employer branding.
Actions: Based on our findings, Evosyst recommended and implemented the following actions:
- HR Process Optimization: We redesigned their key HR processes, automating manual tasks, streamlining workflows, and implementing a centralized HR service delivery model. This included implementing a cloud-based HRIS (Human Resource Information System) to integrate all HR functions.
- Talent Acquisition Strategy: We developed a centralized talent acquisition strategy, including employer branding, a standardized recruitment process, and the implementation of an Applicant Tracking System (ATS). This reduced recruitment costs and improved the quality of hires.
- Benefits Administration Consolidation: We consolidated their benefits administration by partnering with a single provider, reducing administrative fees and improving the employee experience.
- HR Technology Implementation: We helped them select and implement a new, integrated HRIS, which automated many HR processes, improved data accuracy, and provided better reporting capabilities.
- HR Metrics and Reporting: We developed key HR metrics and reporting dashboards to track HR performance and measure the return on HR investments.
- Training and Development: We provided training to their HR team and workforces on the new processes and technologies, ensuring they had the skills and knowledge to effectively manage HR operations.
Results: Within six months of implementing these changes, Client had achieved the following results:
- Reduced HR Costs: They reduced their overall HR costs by 15% through process optimization, technology implementation, and benefits consolidation.
- Improved HR Efficiency: HR processing time was reduced by 30%, freeing up HR staff to focus on more strategic initiatives.
- Enhanced Employee Experience: Employee satisfaction with HR services increased significantly, as measured by employee surveys.
- Improved Talent Acquisition: Time-to-hire was reduced by 20%, and the quality of hires improved, leading to better employee performance and retention.
- Increased ROI on HR Investments: By tracking HR metrics and reporting on HR performance, Innovate Inc. was able to demonstrate the value of HR to the business.
This challenging case demonstrates the HR analytical strength of our HR team. Evosyst’s HR Expert helped them significantly reduce their HR costs, improve efficiency, and enhance the employee experience. This allowed client to focus on their core business and continue their rapid growth trajectory. Bravo to Evosyst HR Team ! Contact us, if you need expert HR Support.
