Human Resources Efficiency Is HR's Value Contribution

Starting with the End in Sights…

This week in HR, we are working with clients to maximize their Human Capital strategy to benefit employees AND the organization through cost efficiency. There is no better way for a business function to serve the organization than to ensure its own cost-efficacy. Cost efficacy, though, is only understood in the context of what you’re trying to achieve. In other words, before you can measure your HR efficiency, you need to understand what your HR function is trying to achieve.

For instance, are you being efficient if you have processed 200 candidate applications this month? The answer depends on your priorities. 

  • Are you trying to expand your talent pool?
  • Is 200 a lot of candidates or not enough? 
  • Are you actively recruiting? Or should you be focusing more on upskilling existing talent? 

To measure your efficiency, you’ll need to review your top-line business goals, and how the HR team will contribute to those goals. 

Where does the organization create value for the customer? How does it make (and spend) money? What are the central business priorities? HR professionals need to be businesspeople first and foremost.

HR takes business objectives and translates those into people management tactics and practices. And if you’re smart, you find ways to measure your contribution to the organization, not only for validation but for quality assurance, too.

Once you’ve reviewed your top-level HR objectives, it’s time to audit your practices, starting with the various steps in the employee journey. The employee journey is the series of interactions between your company and your employees, from the first point of contact to the exit interview, and even beyond. 

Each stage can be disaggregated and measured for efficiency. How long does it take from the time a manager identifies a hiring need for HR to have posted an ad? How many days does the ad stay open before identifying quality talent? How much money is being spent on advertising and so on? Key efficiency metrics for HR are:

  • Time to hire
  • Cost per hire 
  • Total recruitment spend 
  • Time to onboard 
  • Time to full productivity
  • Training cost per employee
  • Training time per employee 
  • Retention rate
  • Turnover rate
  • New hire turnover rate 
  • Cost of turnover 
  • Revenue per employee 
  • Employee lifetime value

Alright, so we’ve measured and identified opportunities for improvement. Improvement looks like reducing tasks, removing barriers between other business functions and HR interaction, it’s getting to the goal faster. Sometimes that looks like automation. HR can lead the way at organizations by automating key HR functions, like onboarding and document management. Yes, this is not just a plug for Crescent and our incredible technology, this is an obvious opportunity for any HR person to no only make their lives easier, but to create efficiencies at the organization, reduce costs, improve the employee experience, and to drive the organization further down the road toward its success.

Common automations in HR can lead to:

  • Faster time to hire by automating job postings and candidate tracking.
  • Automated onboarding flows to make sure every new hire has a great first impression.
  • Internal communication automation, so that employees receive the right information when they need it.
  • Self-service. Creating a culture of self-sufficiency through a strong employee self-service portal will change your life.

Everyone is ready for HR efficiency improvement. No organization in these times can afford to leave automation opportunities on the table. Change is occurring before our eyes in ways we never imagined. The workforce in the US is doing entirely different things than it did 20 years ago—even 5 years ago, and change is only ramping up.

empact hr helps employers not only find efficiency opportunities, but also help employers understand how HR can help achieve business success, and business outcomes that matter, all in the context of your goals.


Director, HR Services

Philip began his 12-year Human Resource career in HR Project Management and Recruiting in the legal tech sector, working for startups that were listed among Forbes Fastest Growing Companies. Philip has managed human capital operations in almost all 50 states and in parts of Europe. His experience ranges from compliance to leadership coaching. After achieving his MBA from Tulane University in 2019, Philip transitioned from in-house Director to consulting, where he focuses on helping leaders understand, document, and improve productivity and visibility through Performance Management, Mission Vision and Values integration, and Professional Development. Compliance remains a cornerstone of his strategic assistance to companies that want to scale carefully and smartly.

Philip believes that every employer can methodically create an attractive and inspiring Employer Brand and Human Capital strategy. “Every challenge can become the building block of a breakthrough opportunity through a dynamic HR strategy.