From Hire to Retire…Technology Overview
Employees represent some of the most important assets within an organisation and, depending on the industry, can account for over 70 to 90 percent of an organisation’s financial investment. To ensure a return on this investment, workforce engagement needs to be appropriately managed. After all, it is a primary driver of a company’s production levels.
Two of management’s biggest challenges are effectively onboarding and offboarding—respectively, the seamless integration of new workers into the system and the removal of those retiring— while ensuring that the company consistently maintains the capacity for achieving its mission and business goals. Both onboarding and offboarding may also refer to changing roles within the organisation, while offboarding is often used in conjunction with termination, including involuntary.
In today’s world, HR and payroll managers have access to technologies which, set up and managed correctly, enhance their people skills and allow them to engage and manage workers more effectively.
But looking at onboarding and offboarding as the two opposite ends of the employee experience spectrum, the key to success is an integrated system that seamlessly allows managers to manage employees expediently, efficiently and in compliance, with little interruption to other new, existing and departing workers.
How does your company approach the hiring and retiring of employees? Does your current human resources information system (HRIS) leave gaps in the business, particularly in the areas of hiring and staffing, career development, succession management and payroll?
Increasingly, organisations are finding that poor or disjointed HR systems can be extremely costly, not just financially but also in terms of frustrated or disgruntled employees who lose productivity and may even leave the company.
A disgruntled workforce can also reflect poorly on a company’s internal operations. Question marks dangling over its head is just not a good company image and can lead to jittery business partners and skeptical workers. Potentially high-value employees will think twice about signing on to a company known for high turnover and low employee satisfaction.
Instead, implementing a system that allows companies to acquire, manage and retain quality workers while maintaining flawless backend administration processes, enables everyone--employees and management alike-- to focus on optimizing engagement and production.
Efficient Technology for Onboarding and Offboarding Saves Money
There’s no escaping the workplace reality that jobs are terminated as employees reach retirement age. An efficient management system, supported by the right technology, will ensure a smooth transition between hiring and retiring of workers without causing gaps or interruptions in production. For each pause in operations, the company loses money. So the more quickly employees are offboarded, the faster you can onboard others. Efficiencies can also affect compliance issues. For example, if not correctly tracked or accounted for, contract worker engagement that exceeds a defined period could affect their classification, giving them all the benefits of a permanent employee.
Employee Management and Work Interruptions
Organisations must be prepared for unplanned occurrences, including the voluntary, forced or natural exit of workers. But after acquiring quality talent, a company also needs to ensure that it can keep them.
Imagine a key employee--a highly skilled technician—walking off the job because of unresolved issues like classification or payment of benefits. Dissatisfied workers leave companies more quickly, causing management to search for someone new to fill that role. Putting a project on pause while you search for the right replacement is a costly interruption to production.
Bear in mind, too, that disgruntled workers are not only less productive than their more satisfied colleagues, but their discontent can also be contagious. Invariably, they spread “bad vibes” to fellow workers, causing unease and disruption. Consequently, it’s not unusual to lose more than one quality employee in short succession.
How HR Handles the Onboarding / Offboarding Process
An organisation’s internal administration requires a lot of time, know-how and collaboration between HR, finance and any number of other departments. This challenge heightens as the company grows and expands, and its need for human capital grows in number and complexity. Organisations must take care not only to correctly onboard and categorise employees, ensuring not only that they are compensated accurately and receive the appropriate benefits package, but also that there is a handover of tasks (where appropriate), adequate training and then offboarding at the appropriate time.
Many organisations use third-party companies, including recruitment and/or HR/payroll companies to help supplement their sourcing and administration needs. Many organisations use specialist providers such as AlexanderMann, Randstad and Kelly Services (for sourcing) and NGA Human Resources (for Payroll and HR technology and managed services) due to their local focus, global reach and scalable solutions. In doing so HR leaders, and management, can work more strategically; and realise the true value of workforce management by increasing focusing on employee satisfaction.
More and more companies today realise that internal recruitment and payroll management are two of the most time consuming processes anywhere in the organisation. Although costly from systems, resourcing and compliance perspectives, these processes are absolutely required in every organisation.
Outsourcing these functions has fast become the solution of choice for many, which saves time, cuts costs and allows for shifting focus to more important matters that will ultimately contribute to increased productivity and competitiveness of the company.
Consider payroll. The fine details of this function make it a very draining process for the HR or Finance department (depending on which department it sits) that still has 101 other functions to carry out. Small mishaps and overlooking even the most minute details can end badly for the company.
Consequently, organisations must often dedicate one or more people solely to payroll—people who could have been focusing on higher-value tasks that impact the company’s growth. And by keeping too many resources too focused on administrative tasks, too many companies make what has been historically a very common mistake: Not giving appropriate attention to the onboarding and offboarding of their most valuable asset, their employees. Increasingly, outsourcing and technology are the answers.
I have briefly highlighted two small but very important aspects of HR technology. Where is your company in today with respect to onboarding and offboarding processes? Have you accounted for all the other HR and payroll tasks and tools in between? And are you managing those with solutions that are efficient— and smart?
NGA’s many years of global and local expertise, SOC1 and legislative compliance continues to bring benefits to small and large organisations, allowing them to focus on their core business, while utilising an NGA outsourcing or technology solution.