The HR budget for 2021 is most certainly affected by the unprecedented challenges of 2020. While you need to craft a budget that supports your employees and meet the company’s talent management goals, you should also be aware of the current key HR trends.
To help you get started, here are some HR budgeting tips for 2021:
1. Be creative in recruiting
Allocate more resources for recruiting campaigns that proved to work in the past. However, don’t hesitate to change your classic recruiting methods and explore new ways of engaging with the talent you want to attract. Also, dare to use technology for remote candidate selection and video interviewing.
2. Revise retention programs
Reduce the company’s turnover and retain the top talent by reviewing your employees’ benefits. Look into the HR key trends for 2021 because as more positions will become permanently remote, you should focus the retention methods on:
- Rethinking paid time off policies.
- Providing relevant health benefits, such as mental health benefits.
- Adding voluntary benefits that make sense to your employees and increase their engagement.
3. Revisit employees’ benefits
Review the benefits of the employees to reduce costs. Your goal is not to strip benefits but to make sure that you get the right price for the coverage provided. Analyze the employees’ needs, adapt to the new challenges, and renegotiate the health insurance plan deals. Finally, revisit your enrollment process and maximize participation through smart campaigns.
4. Automate tasks
Increase your HR efficiency through automation. Technology allows you to free up time and provide more services to employees without spending more money. Integrate payroll with HR information systems, use benefits technology, or explore self-service platforms to give more control and put more information into the employees’ hands.
5. Use the contingency budget line
2020 has shown us that our plans can be drastically changed, and we need to adapt quickly. Craft a budget that leaves room for “what-if” situations that could affect your recruitment, employee management, training and development, enrollment and benefits programs, etc.
With the 2020 chaos behind, stepping into 2021 might feel overwhelming. You are not alone, you can always count on reliable partners.
Reach out to us for professional support in enrollment and benefits.