HR Cost Optimization

Driving enterprise-wide cost optimization

Cost optimization insights

As the demand to deliver high-value services increases in tandem with the need to drive productivity, cost optimization remains high on the list of priorities for 92% of HR functions. However, HR leaders often respond to ad hoc cost reduction requests, leading to unintended consequences for the business.

Download the HR cost optimization framework

Identify the top cost optimization initiatives for your human resources function

By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

Contact Information

All fields are required.

  • Step 2 of 3

    By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

    Company Information

    All fields are required.

    Type company and location
    Optional Optional
  • Step 3 of 3

    By clicking the "Submit" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

    Cost optimization goes beyond cost cutting

    To maximize cost savings, HR leaders should pursue cost optimization through both function-specific and enterprise wide programs. Cost optimization is a business-focused, continuous discipline intended to maximize business value while reducing costs.

    Graphic displaying how to drive HR cost optimization across the enterprise.

    Cost optimization insights you can use

    From helping HR functions drive baseline efficiencies to creating a sustainable cost optimization roadmap, Gartner makes sure that cost optimization is an ongoing, strategic discipline rather than an emergency-driven project or one-time undertaking.

    How to Prioritize HR Cost Optimization Initiatives

    Cost optimization efforts fail to yield their full potential when they are not systematically evaluated. Good cost reduction decisions require a clear and rigorous business-driven understanding of the relative investment, risk, time, impact and benefits of potential cost optimization initiatives.

    What Employees Really Think About Cost Management

    With nearly 80% of employees believing that their organization is likely to reduce costs in the next 12 months, understanding their perceptions of past cost-cutting programs helps HR plan future cost-saving initiatives and receive better workforce buy-in.

    Don't Forget About HR Structure

    HR leaders have increasingly applied more differentiated and specialized HR structures, but this has often resulted in conflict and duplication. CHROs must understand the tensions in different models, and tailor their structure based on their context, to deliver cost-optimized HR.

    Questions about becoming a Gartner client?

    We have a relentless focus on doing what really matters [and getting] good data as to costs and how they link to the business strategy.
    Head of Talent Management, Fortune 500 Company

    Gartner BuySmart™

    Organizations worldwide need to make fast and smart technology decisions to drive business continuity and accelerate disruption recovery. Gartner BuySmart™ provides objective advice from experts through the entire technology buying life cycle to enable the best possible business outcomes, helping you:

    • Determine what you really need to meet business outcomes
    • Pick the right provider with confidence
    • Align deal structures with business needs
    • Optimize spend
    • Reduce complexity & risk

    Gartner’s 170+ HR experts are trusted advisors for over 4,000 senior HR leaders.

    Learn more about our labor market data, HR function benchmarks, best practices and tools designed to accelerate speed to execution and ensure decision quality.