HR management system tasks can really be stressful at times. Especially in larger organizations where employees are located in different parts of the country, or even located abroad. But, why should it be stressful? The use of Technology Consultation in HR can alleviate all your woes by solutions like artificial intelligence in HR systems.
Use of Technology in HR
Technology in HR is so advanced in the recent past that the above-mentioned tasks can be managed easily. Smart HR management systems are interlinking people to HR tasks in such a subtle way that these tasks which HR was hitherto performing, are smartly being ‘outsourced’ and how.
Let us review a scenario where an organization is in the process of hiring employees for a project. It begins with the talent acquisition team uploading job description on their portal. Eligible candidates will post their resume in the portal with their educational and professional data. Artificial intelligence in HR systems takes over to scan these bits of data & shortlists candidates. Recruiters will receive automated emails of shortlisted candidates and schedule interviews along with hiring managers. Compensation of the new joiners is aligned automatically to wage charts pre-set by C&B teams, depending on the level/skill/designation.
Enterprise HCM software solution is used by human resource management professionals to do the following:
- Import documents into digital repositories
- Organize imported documents so that they are searchable and retrievable
- Storing files in standard formats for sharing to multiple devices
- Archive records
- Make audits simpler by making it easier to gather information
WORKFORCE PLANNING WITH CENTRALIZED DATA
A centralized system of record for HR is imperative for managers and business leaders to leverage HR data and make better decisions. This centralized source helps ensure that data used by reporting tools is accurate and consistent, and it helps eliminate duplicated efforts by updating changes in real-time.
Integrating antiquated systems can be difficult, especially across multiple locations and states, so many organizations are adopting online payroll and HR systems. Software as a Service (SaaS) and cloud-based delivery models have become staples of best business practices. Their inherent flexibility and integration capabilities allow organizations to unify workforce data with organizational initiatives. This results in overall cost savings, including:
- Increased control of labor expenses: An integrated payroll and HR solution helps manage labor costs by providing timely insights; for example, standardized reports show key business analytics such as labor expenses, overtime, and benefit costs.
- Improved compliance management: A unified system simplifies compliance with wage and hour (FMLA) regulations, as well as local, state, and federal rules. A secure, centralized database for all payroll and HR data ensures greater compliance and helps avoid penalties.
- Streamlined benefits administration: Benefits management in a unified system ensures all eligible employees have been offered coverage, benefits are not paid for ex-employees, and all pertinent data is transmitted electronically to benefits providers.
- Simplified ACA compliance: For many organizations, managing ACA compliance manually in separate systems is proving challenging. Adopting ACA compliance tools that are integrated into a single HR and payroll solution provides significant cost savings by preventing penalties, and also saves time compared to compiling data manually or from separate systems.
Data Integrity in HR
Data integrity is critical in every aspect of the business, especially as it pertains to human resources. If HR data is inaccurate or inconsistent, it can affect employees’ paychecks, employee performance reviews, training, and development, productivity tracking, the reputation of the company, the bottom line and productivity itself.
Data Challenges that Can Be Overcome with HRIS
“Big data” is a buzzword that gets tossed around a lot and is being increasingly used to speak of human resources data in addition to company finances and systems. Big data and associated navigation techniques can sound complicated and intimidating to small companies that have limited resources and fewer employees, but following the models of larger companies can managers to glean valuable insights from this data. Acquiring an affordable HRIS and using it to navigate data can help small companies to strategically use their information.
Compiling HR Data
Collecting, storing, and tracking data is a challenge that every organization must face, no matter the size. In the past, most companies collected data from employees using paper forms, stored the data in filing cabinets and folders, and tracked the data using rudimentary forms or spreadsheets, if the data was tracked at all. Unfortunately, many small companies still use this ineffectual and error-prone system.
Organizing HR Data
With the old filing cabinets or even the updated electronic filing cabinets, information is difficult to find and practically impossible to use for decision making. HR data may be strewn across spreadsheets, files, and stored in boxes. When data is stored in an HRIS, organization, and tracking systems are already in place within the system, so data can simply be entered and recalled for useful means as needed.
Performing Analysis of HR Data
Analyzing HR data can take an expert if it must be done manually. Formulas to break down labor numbers and percentages, compare labor numbers to productivity measures, and track issues like absence and turnover can be complex, and applying them can be time-consuming. HRIS solutions make it possible to analyze real-time data and apply formulas automatically or in seconds, producing reports that can be used to make decisions to improve operations continuously.
Using HR Data Strategically
Terkwaz Business Solutions sees that even the smallest companies can use HR data strategically. After analyses have been done, action can be taken to improve operations in both the short term and the long term. When manual systems are used, data can still be analyzed and used strategically, but the processes may take longer and be less relevant by the time solutions are found.
However, the big data movement is in its infancy, and not all companies that have made the move toward collecting HR data have reached the point where data collection and analysis have resulted in significant benefits, such as:
- Enhanced ability to recruit top performers.
- Improvement in the retention of valuable employees.
- Accurate assessment of which employees will make good leaders.
- Development of more effective training.
Who Is Going to Analyze the Data?
Chances are that your HR staff is not loaded with analytics experts. However, certificates and degrees in analytics are available to bring your staff up to speed. You can hire experienced data analysts to assist in the effort, on a full-time, consultant basis, a software business solutions company Like Terkwaz offers you technology consultation services.. HR leadership must have the ability to envision what big data can do for the organization and to understand what the analysis shows.
What is performance management?
Performance management is the continuing process of communication between managers and employees, with the mutual goal of accomplishing the strategic goals of the company. It is the foundation for employee performance and engagement in any organization that wants its employees to reach their maximum potential and boost their productivity and success.
The process- often combining both oral and written components, is happening throughout the year and usually results in an annual performance evaluation. This entire communication process involves defining clear specific expectations, setting objectives, establishing goals, providing ongoing feedback, and examining results.
Steps to HR performance management
In general, the concept of performance management is a cycle consisting of three major elements:
1) Performance Planning
Preparing in advance is crucial. The first step is establishing goals and objectives, which will be the target employees want to reach and will mark the desired state they wish to arrive to. Each individual’s goal should support and be aligned with organizational goals, and the more detailed the performance planning is, the better chances are for the goals to be achieved. This helps employees understand how and what to spend their time on, and how to allocate their efforts between special assignments and on-job duties. After this step is performed successfully, both staff members and managers should be fully aware of the timeframes, what is the expected outcome, and how success will be measured.
2) Performance Coaching
The core purpose of this step is to provide regular feedback on performance during the whole year, and at the same time providing direction and support, and coaching employees to modify performance and increase exercise where necessary. Every single employee is different from another – he may be working on different tasks, proficient in other skills, and needs support in other areas. Therefore, managers need to be aware of the different necessities of employees and coach them in a way that meets their personal needs. This step is extremely important for empowering employees, maintaining an encouraging dialogue with employees, and leveraging their success.
3) Performance Review
Here employees receive feedback. Feedback should include both recognition of the employee’s strengths and discussion about the challenges that require improvement and more coaching. After that being done, new plans for further development can be built. Those plans should as well be clear and measurable, and they in fact represent the beginning of the whole process again.
How can managers successfully carry out this process?
As you can tell, the process of performance management is rather long and has many elements that need to be addressed. Furthermore, it needs to be done with every single employee in the organization simultaneously, while each employee has different individual goals and characteristics. Hence this process, in large organizations especially, might require using a platform that supports the process and helps managers handle and operate it from beginning to end. HR Performance Management systems enable managers to track and monitor the performance of individual employees as well as departments, and the overall organization.
What should you look for in the HR Performance management platform?
• Clear measurements
According to the specific role, ongoing missions, and current position in the employee journey, each employee should get his own key performance indicators. Providing clear measurements that are personalized for the individual employee is essential for her to understand the manager’s expectations, and essential for the manager to keep track of the employee’s scores and achievements. Personalization is very important since the goals need to be relevant to the specific employee in order to ensure employee engagement.
• Engagement tools
A successful performance management system should integrate performance improvement with employee engagement, to ensure employees are committed to develop and advance. There are many ways to create engagement, for example how Microsoft used gamification to boost the performance and engagement of their call-center agents.
Employees should obtain the skills and knowledge required of them to do their jobs and meet their goals as expected, and this can be confirmed through learning and development activities. Ideally, learning (daily micro-learning) should be integrated with the system.
• Feedback & recognition
Recognition is important to performance management since it is an integral part of the employee’s emotional sense of their work, serving as an important driver. You want your employees to be induced with the intrinsic motivation that lasts and not to be focused on the vanity of winning a prize.
For performance management to be effective, managers must be provided with the precise data according to the exact metrics that had been set. They should be able to view the data anytime so they can set the right goals for success. The performance management software should analyze and assist managers in their reasoning and evaluation of the employee.
How HR Can Increase Profitability
All too often human resources are viewed as a necessary evil. Many business leaders regard it as a department designed to provide new employee orientation and take care of laborious paperwork – nothing more.
In reality, HR plays a bigger role than most people think. In fact, HR can increase profitability and improve a company’s bottom line in several ways.
Insightful HR Statistics
Research from a business and legal resources webinar from HR Hero indicates that “60 percent of executives are beginning to see that HR can partner with other departments to increase the profitability and value of a business.” The outdated notion that HR is just there for processing paperwork has given way to an understanding that it actually plays a vital role in the strategic development of a business as well as its company culture.
A Better Employee Onboarding Process
When employees are given adequate training and equipped with the right tools, they can perform their jobs more effectively and become more productive. HR plays a key role in the onboarding process and can take measures to ensure that new hires get the training they need and are ready to perform their jobs at the highest level possible.
HR is also responsible for selecting the best candidates who possess both the hard and soft skills needed for the job. In turn, they’re likely to find individuals who are genuinely enthusiastic about their careers, which increases the odds that employees will stick around for the long haul.
Essential Tech Tools for Your HR Department
Few departments juggle as many duties or manage as much information as human resources. Technology makes the tasks of recruitment, payroll, and performance evaluation more manageable and allows HR staff members to better engage with the company’s employees.
Here are six HR tech tools that businesses of any size can implement for a happier, better-organized workforce.
1. HRMS (Human Resource Management System) or HRIS (Human Resource Information System)
Human resource departments have a lot of information to input, store, and track. The most common method of organizing this information is with a comprehensive human resource management system (HRMS).
Whether it’s a software solution or software as a service, an HRMS can be an HR representative’s best friend. It stores and organizes data, such as employee profiles, schedules, attendance records, and more.
Human resource information systems (HRIS) are typically more data-driven solutions that allow you to craft in-depth reports for the purposes of audits.
Most HRMS offerings, such as Paychex and Workday, act as HR’s central platform and often have modules or integrations that allow you to access payroll services, benefits management, and performance evaluations.
2. Performance solutions
Performance evaluations and tracking are not only an annual meeting between supervisor and employee, but the goals and objectives discussed in that meeting are tracked and revisited throughout the year by HR. To get the most out a performance review and better formulate goals for individual employees, HR can provide managers with the tools to track their staff member’s performance throughout the year, saving notes and feedback to prepare both manager and employee for the evaluation. Many HRMS and payroll solutions, such as ADP, come with a customizable performance review module.
3. Recruiting software
As the name implies, recruiting software streamlines the hiring process. You can post job ads, sort and accept applications, manage candidates and more, saving you the hassle of manually tracking everything yourself.
Small businesses, in particular, should check the pricing and features for each solution being considered: Many recruiting programs are geared toward bigger companies with large volumes of applicants. Small businesses may be better served by a less-expensive product with fewer capabilities, depending on your hiring needs.
4. Payroll service
Payroll processing is an arduous task. Make it easy on yourself by investing in an online payroll service. This solution automatically calculates and tracks paychecks, deductions, paid time off, etc. Some even allow you to file and pay payroll taxes and report new hires to the IRS.
5. Benefits management platform
While some payroll services allow you to administer certain benefits, such as vacation time, a more robust solution can help you manage all employee benefits including paid time off, retirement plans, health insurance, workers’ compensation, and other perks.
6. Employee engagement tools
Employee engagement is a high priority for many companies. With today’s tech tools, you can monitor your organization’s culture, giving you better insights into what your employees want.
For example, such programs as YouEarnedIt allow people to recognize and reward co-workers when they do a good job or exemplify company values. Other tools, such as TINYpulse, let you collect anonymous feedback from your team that you can use to improve your culture and operations.
When you’re trying to get a feel for employees’ thoughts and opinions and specific subjects, such as what type of food should be provided at the next meeting or gathering employee’s opinions on a new companywide policy, sometimes it’s best to use free programs like Google Forms or Survey Monkey. These tools allow you to compile honest feedback anonymously. Follow Terkwaz Business Solutions for more useful information, Follow Us on Linked-In.