I recently spoke to a fellow HR professional who informed me that, without warning, his job had been reduced to part-time. Still in shock about the unexpected news and uncertain about how to provide for his family of five, he asked: "What could I have done to avoid this?"

First, I asked him what value proposition he currently offers his employer. I got the deer-in-headlights look in response. I explained that nine times out of 10, getting caught up in a round of layoffs or cutbacks is not a random act of cruelty, but rather the result of a calculating assessment. In other words: "How much value do you provide to the company?"

We reviewed some of the core HR responsibilities to see if we could use any of them to demonstrate a strong value contribution. We tried to identify which function could have a measurable impact on the bottom line of the business and, if applied correctly, could improve his value proposition as an HR professional. We discussed:

* Recruiting and hiring: Finding the right people for the job is crucially important for any business. Attrition can be a significant cost driver; however, during a recession companies just don't hire as often and employees are less likely to leave voluntarily. Even in a booming economy it's rather difficult to demonstrate an ROI that would get attention from senior management.

* Talent management: Identifying and closing the gap between the workforce's skills and abilities and the company's needs and requirements can significantly increase a company's overall performance. But it's extremely difficult to demonstrate a direct correlation between training dollars spent and positive financial impact.

* Compliance and HR transactional processes: Ensuring compliance and taking care of countless HR transactions in a highly efficient manner is critically important for any business. In most cases these functions are only analyzed when something isn't working. Compliance and HR transactional processes simply don't have a lot of savings potential.

* Benefits: Providing benefits (especially health care benefits) is the single most expensive activity the HR department oversees. Health-related costs are the fastest growing cost driver that companies are exposed to and which they can do nothing about - or can they?

That last bit caught my friend's attention and I could see that glimmer of hope return. The longer we spoke, the more pronounced his understanding became and clearly he was regaining some confidence.

By the time we'd wrapped up, he understood exactly how he could prove his value because now he knew a solution to one of the most pressing problems facing any company today: increasing health care costs.

My friend understood that his ability to contribute value to his employer was drastically increased because he had mastered the principles of effective health care cost management. He knew how to move away from cost shifting and reducing benefits. Do you?

Here is a simple five-step plan that will help you get started. Within as little as 30 days you can accumulate the understanding and theoretical knowledge it takes to save your employer millions in health care costs.

Step 1: Expand your vision

Develop ideas and concepts that can generate revenue or cut costs. Specifically, research companies that have achieved breakthroughs in health care cost management. Find out how they did it and what they achieved. Here are a few companies to start with: Safeway, Waste Management, Lincoln Industries, Pitney Bowes, Johnson & Johnson, REI, and Deffenbaugh Industries.

Step 2: Lay the foundation

Understand the concept of health as a serious economic strategy. Professor Dee Edington from the Health Management Research Center at the University of Michigan has published "Zero Trends," a must-read on your way to becoming a solution provider in managing health care costs. It provides groundbreaking material and data that correlates health and its effect on a company's bottom line.

Step 3: Go the extra mile

Test-drive your newly acquired skills. Look for problem spots you can help fix and pitch in whenever extra help in is needed. Specifically, combine what you know can be done with why it makes perfect business sense.

Set yourself an objective and develop a multi-year approach for a real or fictitious business with the goal of achieving a certain cost reduction within a given time frame. What steps have to be taken and what pitfalls, bottlenecks and roadblocks can you anticipate? Write them down and address them one by one to make your business case airtight.

Step 4: Develop a 30-second pitch

Define, in a succinct and precise way, the benefits that you can provide to your employer by offering solutions on how to regain control of health care costs. This is your new value proposition. Once you have completed steps one through four and you feel comfortable with the overall concept, take a leap of faith and test the waters.

Can you generate some interest behind the scenes? Lay the bait in casual conversation with senior leaders and see how they respond. Use case studies to support your claims and projections.

Step 5: Sell your business proposal

Make sure that higher-ups know you by solving problems and taking on high profile projects. Specifically, either during an interview or in a presentation to the key decision makers in your company, sell your idea.

Use the data and figures you've accumulated. Be sure to report any obstacles and how to overcome them. You'd be surprised just how much your personal stock will rise. But be careful not to present a plan of action that promises more than you can deliver.

Companies that are pushed to the limit tend to commoditize everything, and even break employees down to cold facts and figures.

To make sure your value to the company is crystal clear, it's essential that you show your management what you can do for them. Health care is one of the most baffling economic quagmires that management has to deal with. If you can provide a solution, you will be a hero and in high demand.

Contributing Editor Michael Puck, SPHR, is the director of human resources for a midsized manufacturing company in Tennessee, author of "Healthcare Cost Management - The High Road" and the founder of www.8020wellness.com. He can be reached at Michael@cut-healthcare-cost.com.

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