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  • Writer's pictureBoss Consulting HR

How an HR Department Can Save You Money!

In the ten years that I’ve been working in an HR capacity, I’ve heard time and time again that “HR is not a revenue department.” Essentially that you have to operate within a lean HR budget because it’s not a department that can make the business money. One could easily argue that an HR department CAN in fact make you money by finding you strong candidates that execute roles that bring revenue to the business, but that’s a stretch.

One thing an HR department can do is save you money which can help bring money back to the bottom line. How, you ask?


Unemployment tax or actual claims (depending on your state’s set up) is an ongoing expense for your organization. The more involved HR is with your terminations, the better they’ll be able to respond to unemployment claims and hopefully win those claims on your behalf. Less claims means a lower tax rate which means savings.

Workers Compensation

Carrying workers compensation and having workers compensation claims can be considered “the cost of doing business” however properly managed claims can influence significant savings per year. Your HR department can support this by providing timely information to employees regarding their workers comp claims, working collaboratively with the claims adjuster to ensure employee care and speaking up when the service from the insurance company doesn’t serve your business. In my past career, I once saved a self-insured company over $200,000 a year simply by having a better handle on claim management.

Avoiding Liability

I asked a friend tonight at dinner, “How would you describe an HR consultants role?” Her response was that an HR consultant “help limit owner risk and exposure.” Employment laws are constantly changing and it can be really challenging staying up to date but having an educated and experienced HR staff member or consultant can help avoid potentially expensive claims.

We’d like to know your HR success stories! How have you saved your company money?

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