Could value engineering boost HR’s impact despite economic challenges?

With tumultuous economic conditions persisting across the Australian workplace, one organisation has predicted that value engineering could be a key framework for impactful HR endeavours.

The Cornerstone 2025 predictions report touched on a variety of potential strategies that could combat some of the challenges that are set to arise in the year – with value engineering being slated as a prospective framework.

Vincent Belliveau, chief international officer at Cornerstone, expounded on the importance of HR in the contemporary workplace: “HR is a strategic partner in cultivating an organisation’s most valuable asset – its people.”

“Now, there is a spotlight on HR to deliver measurable return on value, proving its role as a business driver and growth, not merely a support function and a cost centre.”

Going off this importance, it’s crucial for business outcomes that HR teams can deliver the highest value for their organisation despite economic challenges. The report argued that maximising value engineering is the pathway forward to achieve this.

According to the report, “value engineering is a systematic method aimed at improving the value of a product or process by identifying ways to reduce costs while maintaining or enhancing quality”.

“The process of value engineering involves a detailed analysis to determine where you can minimise expenses without sacrificing essential features. Using value engineering, HR leaders can ensure that their people programs both optimise costs and deliver measurable, sustainable value to their organisations,” it said.

In practice, an example would be leaders leveraging skill-based talent marketplaces to recruit employees rather than over-relying on external recruitment practices – which can be costly – while also improving employee engagement by driving internal career growth.

The report argued that by leaning into value engineering practices, businesses are looking through two lenses rather than primarily fixating on return on investment (ROI). Instead, return on value (ROV) becomes a measurable variable, displaying the expanded value of programs, such as improved employee morale, reduced turnover, and improved employer branding.

All in all, an embrace towards value engineering aims to cut down on organisational waste and redirect towards initiatives that are both cost-friendly and hold long-term value.

“Bold moves and difficult decisions will define 2025. It will demand courage, creativity, and an unrelenting focus on the value your people strategies can deliver. This is not the time for incrementalism; it’s the moment to reimagine how we support and empower our people,” said Belliveau.