• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
How HR Automation Will Save You Money
 

How HR Automation Will Save You Money

on

  • 211 views

How HR Automation Will Save You Money

How HR Automation Will Save You Money

Statistics

Views

Total Views
211
Views on SlideShare
211
Embed Views
0

Actions

Likes
0
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Ask any HR professional and he/she will tell you that Human Resources Management and Compliance can be time-consuming, tedious (at times) and definitely paper intensive. It seems as though that stack (or stacks) of paper never gets smaller. A great way to reduce (or remove entirely) the amount of paper is to have software that will help you automate many HR processes and functions. HR software can do many things. It can: *Improve efficiency *Drive compliance *And establish best practices across your organization. In today’s webinar, we will discuss 4 key objectives: 1) The first objective will be to discuss the need for recordkeeping automation *In HR we have been programmed to be used to paper, paper, and more paper *Because of this thinking, most HR professionals get stuck pushing paper as opposed to focusing on more strategic activities 2) I will also discuss the four key performance metrics you can use to measure your current HR program’s effectiveness *This will allow you to see how you are doing and if you need HR software 3) We will also go over the 10 steps for selecting an HR software for your company using simple, but effective processes. 4) To conclude today’s webinar, I will demo the HotlinkHR system, KPA’s HR management software designed specifically for dealerships.
  • The paper pushing really begins during the hiring process. A few examples of the documents that are processed when going through the hiring process are: *Employment Application *Think about the number of applications you receive for one single posted position *Offer Letter *When you’ve decided on the perfect fit for your open position, it’s best to provide that candidate with a conditional offer letter which spells out the specifics of the position (such as title, pay, start date, etc). *If you administer background checking, there are a number of forms in that process *The Notice and Disclosure Form that the company performs background checks *The employee’s authorization form to consent to a background check – some employment applications have this included at that step of the process *In the event you don’t hire someone based on the information contained in their background report, you are legally required to give the applicant adverse action letters allowing them to dispute any results within the report. *Copies of all reports: this would include the background report itself. *If you do drug testing on applicants, you are required to keep the applicant’s drug test report as well *This report needs to go in a separate folder, ideally in the medical folder for that contains other medical-protected information)All the documents I just discussed do not include any of the new hire paperwork you process when you hire an employee and bring them onboard. *New Hire documents *A few new hire documents include the I-9 form (which is required to be completed within 3 business days of the employee’s start date) *Another super important document: the W-4 *In addition, there may be other mandated forms depending on the state you are in. For example, maybe your state has a State W-4 that needs to be completed in addition to the federal W-4. *And last, but not least, to round out the remaining new hire paperwork would be company specific documents such as a confidentiality agreement or an employee handbook acknowledgement the employee signed off on after reviewing the company’s employee handbook.
  • Another type of paperwork HR processes is Non-Exempt Payroll Records *When we say Non-Exempt, it means and employee who is subject to minimum wage AND overtime pay. Some people get confused and think that all salaried employees are exempt. However, individuals can be non-exempt and paid a salary.For these non-exempt employees, you need to keep records regarding: *The employee’s name *Home address *Occupation (what they do for your company) *Sex *Birth date (if the employee is a minor under 19 years of age) *The hour and ay the person’s workweek begins *The total hours worked each day and week *Total daily or weekly straight-time earnings *Regular hourly pay rate for any week when the employee works overtime *Deductions from or additions to wages (this could be for benefits the employee has elected) *Total wages paid each pay period *Date of payment and pay period coveredAs you can tell after going through that exhaustive list, there are a lot of payroll records for non-exempt employees. If you have HR software, it is easier to retrieve, if necessary, any of the payroll records.
  • For Benefits and Medical Records, you may have the following documents: *Enrollment Forms (this could be for the benefits elected by the employee at the time of hire or during Open Enrollment, such as medical, dental, vision, flex spending benefits) *Summary Plan Descriptions of the benefit plans being offered by the employerAny document that contains an employee’s medical record needs to be kept in a separate file. Examples of this would be: *ADA accommodations– sometimes employersforget to note the reasonable accommodation that was taken for a disabled employee *This is super important to have written down *Drug test results – we spoke about early when you process a drug test on an applicant *If an applicant tested negative for drugs (they have a clean test and the report indicates they pass), you don’t necessarily need to put their drug test results in this separate file since there isn’t any medical information contained in that report *Physicals *Workers’ Compensation *OSHA Reports *FMLA – this also includes any state leave law paperwork. An example in CA would be CFRA, the California Family Rights Act leave
  • And the last type of paperwork I want touch on that would be included in the employee’s standard personnel file are Performance Management Documents. This would include: *Promotions *Transfers *Appraisals – Performance Reviews *Discipline *TerminationsYou are probably seeing a theme here: HR processes a lot of paperwork.You are probably able to manage these HR processes without HR software, but it may be very overwhelming,time-consuming, and paper intensive. It may be easier to look at an HR software that will automate your process and make retrieval of any information easy. It’s a lot easier to find information in a system than within the paper stacks on your desk.
  • Instead of pushing paper, HR should focus on 4 key performance indicators that will measure the success of your processes. The four key performance metrics are: *Employee Costs *Employee Turnover/Retention *Employee Engagement/Satisfaction *Workplace ComplianceBy focusing on these four items, you can make HR a profit center versus a paper/cost center. You need to baseline these measurements and look at the trendyear after year to show that they are improving. Having these numbers will make it easier to justify things – GM’s are a lot more responsive to adding programs if you can present these types of numbers.
  • Even though HR individuals are seenas people-persons, HR is responsible for a lot of numbers and we are actually better than we think we are with themThe first key performance metric is Employee Cost - What do employees cost? *The average cost of an employee is usually pretty easy to rattle off *The total cost of Salary & benefits *To dig deeper, break the cost down by department * % of revenue by EE *To calculate this cost, take the Total company revenue and divide by # of EE’s *Whatever your baseline number is, for effective HR, you want to see that number increase *Employment Costs as % Operating Expense *Are payroll costs increasing or decreasing and are employee numbers increasing or decreasing? *% of time lost to absences *When people are not at work, they aren’t productive. *Average OT per Employee *There is a common misconception that overtime may be good because it comes across to employees as “bonus-like” *If you are paying a lot of OT out, you are not doing a good job. (OT is expensive when you calculate it = it’s 1.5 times the person’s regular rate of pay) *You need to evaluate how much OT is being paid out and look back to see if maybe staff needs to be added.To calculate Employee Cost, just start with one even though there are a lot of ways to measure. My favorite is the % of revenue by EEYou need to figure out employee cost and start baselining it quarterly so you can bring the numbers management at the end of year *If you can show improvement, it will show that you have produced and engaged workforce
  • The 2nd Key Performance Metric is Employee Turnover/RetentionThis is a classic HR measurement *Total replacement hires per year *Keep in mind these are replacement hires and not new hires *Total cost to hire *How much is your recruiting costing you *HR should drive this number down *% of new hires achieving after 6 months *This is my favorite – if you are hiring the right people, you will be able to see a high degree of productivity after 6 months *% of new hires achieving after 12 months, *This calculation will help you with your annual baseline *Your goal should be a year from now you want that number to increase *% of new hires achieving satisfactory appraisals *Whether you perform 90 day or even 12 months reviews, your goal is to achieve this satisfactory level, because it measures the effectiveness of your hiring program *And last, but not least, cost of training per employee *This number could increase if overall training budget decreases if you aren’t constantly having to train new hires.
  • The 3rd Key Performance Metric is Employee Engagement & SatisfactionMeasure this on an annual basis *Are employees satisfied and happy? *Compensation and benefits – don’t put too much emphasis on this because most people would love to earn more money. *How the employee gets along with coworkers and managers *Remember: Employees don’t quit companies, they quit people *Promotion opportunities *Training *Work TasksAgain, create a baseline - whatever that number is, and improve upon it each year.
  • The 4th Key Performance Metric is Workplace Compliance *How many employees are complaining about issues *How many lawsuits/audits have you received. *If there have been a lot, try to decrease it because defending lawsuits cuts into your company revenue *Lost time to accidents *If you don’t have safety culture or ownership between employees, your will have higher WC cost, your Experience-Modifier may increase, you will lose productivity time *Training *Is your training working - evaluate the effectiveness of your training *If you are doing Sexual Harassment training and the number of complaints to the EEOC remains steady, your training probably isn’t effectiveBy using the 4 key performance metrics I discussed, you in HR can really measure whether your HR dept is impact the bottom line. What’s working and what isn’t. If you can’t measure, you can’t improve.Without HR software, it’s hard to do that. Now let’s talk about how to select an HR software.

How HR Automation Will Save You Money How HR Automation Will Save You Money Presentation Transcript

  • How HR Automation Will Save You Money Tamara Lischer, PHR-CA Client Advocate, HR Products September 24, 2013
  • Speakers Moderator Presenter Becky Ross Marketing Manager 303-228-8753 bross@kpaonline.com Tamara Lischer PHR-CA, HotlinkHR Client Advocate 303-228-2385 tlischer@kpaonline.com
  • Questions • If you have questions during the presentation, please submit them using the “Questions” feature • Questions will be answered at the end of the webinar
  • Webinar Objectives 1. Recordkeeping Automation 2. Four Key Performance Metrics 3. Selecting HR Software 4. HotlinkHR Demo
  • Paper, Paper Everywhere! • Each employee generates on average 100 HR transactions per year at an average cost of $10 per transaction in administrative processing and storage costs* • During an average tenure an employee file will have between 25-32 pages – Applicant/New Hire Paperwork – Payroll Information – Benefits Information – Medical Records – Performance Management *Iron Mountain Document Management & ASUG/SAP Benchmark Study
  • Applicant/New Hire Paperwork • Employment Application • Offer Letter • Background Checking & Fair Credit Reporting Act – Notice and Disclosure Form – Adverse Action Letters – Copies of all reports o Keep any drug testing reports separate (with medical records) • I-9 • W-4 • Confidentiality Agreement • Employee Handbook Acknowledgement
  • Non-Exempt Payroll Records If an employee is subject to both minimum-wage and overtime pay provisions, you must keep the following records: • Employee’s name • Home address • Occupation • Sex • Birth date (if under 19 years of age) • Hour and day the person's workweek begins • Total hours worked each day and week • Total daily or weekly straight-time earnings • Regular hourly pay rate for any week when the employee works overtime • Deductions from or additions to wages • Total wages paid each pay period • Date of payment and pay period covered
  • Benefits Information/Medical Records Benefits Information • Enrollment Forms (Health, Dental, Vision, Flex Spending) • Summary Plan Descriptions Medical Records (Separate File) • ADA accommodations • Drug testing results • Physicals • Workers’ Compensation • OSHA reports • FMLA
  • …And Even More Paperwork Performance Management Documents • Promotions • Transfers • Appraisals • Discipline • Terminations
  • Four Key Performance Metrics 1. Employee Costs 2. Employee Turnover/Retention 3. Employee Engagement/Satisfaction 4. Workplace Compliance
  • Employee Costs • Average Costs of an Employee – Salary – Benefits • Percentage of Revenue by Employee • Employment Costs as a % of Operating Expenses • % of time lost to absences • Average overtime per employee
  • Employee Turnover/Retention • Total replacement hires per year • Total cost to hire • % of new hires achieving after 6 months • % of new hires achieving after 12 months • % of new hires achieving satisfactory appraisals • Cost of training per employee
  • Employee Engagement/Satisfaction Annual measurements on attitudes and beliefs… • Compensation and benefits • Co-workers, managers • Promotion opportunities • Training • Work Tasks
  • Workplace Compliance • Total number of complaints • Total number of lawsuits/audits – Cost of defense as a % of revenue • Lost time to accidents • Training – Measure impact of training year to year against lawsuits and complaints
  • 10 Steps to Selecting HR Software 1. Improve your HR Software knowledge • Employee Database • Payroll • Attendance • Time Collection • Training Management • Recruiting • ESS • Manager Self Service • Email Alerts • Benefits Administration • Benefits Open Enrollment • Carrier Connect • Position Control • Performance Review Management & Compensation • Succession Planning • E Forms • Government Compliance • Report Generation • Customization • HRIS Hosted – versus – Purchase
  • 10 Steps to Selecting HR Software 2. Determine your HR Software needs • Be highly detailed • Needs Assessment might include: – Windows Based or Web Based – Integrated Payroll – Training Management – Turnover Reports – Job and Pay History – Attendance and Accrual Tracking – Report Writing – Ease of Use
  • 10 Steps to Selecting HR Software 3. Create a detailed HR Software requirements spreadsheet • Excel spreadsheet to use during evaluation process • Data Field Examples: – Integrated HR and Payroll – Attendance Tracking – Training Management – Training requirements – Turnover Reports Standard or Custom – Job and Pay history – Interfaces to GL – Interfaces to Time Clock No Yes – Prices – Software – Annual Support – Implementation days – Implementation cost – Total Costs – Monthly Costs Option Cost
  • 10 Steps to Selecting HR Software 4. Determine your HR Software budget • You don’t want the system to seem like a cost center • Involve other departments • Include total as well as monthly amount – Hosted options
  • 10 Steps to Selecting HR Software 5. Select HR vendors to review • Limit to four or five • Picking vendors: – Ask fellow HR colleagues – Speak with fellow SHRM members – Post for recommendations on HR message boards, forums, or blogs
  • 10 Steps to Selecting HR Software 6. Evaluate the HR software systems • Online or On-site demo • Score based on needs spreadsheet
  • 10 Steps to Selecting HR Software 7. Research each company • Things to consider: – How long have they been in business? – How many clients do they have? – References
  • 10 Steps to Selecting HR Software 8. Set HR software implementation expectations and price • Define the scope in detail • Fixed Costs: – Software – Support • Variable Costs: – Implementation
  • 10 Steps to Selecting HR Software 9. Make your purchase decision • Defined Needs • Selected Vendors to review • Shortened list based on price, capabilities, and company strength
  • 10 Steps to Selecting HR Software 10.Gain approval for the final purchase • Most important step! • Advice to gain approval: – Group Agreement – Cost Justification – Value Add of HR Software
  • Demo
  • QUESTION AND ANSWERS
  • Contact Information 27– KPA CONFIDENTIAL – The recorded webinar and presentation slides will be emailed to you today. www.kpaonline.com bross@kpaonline.com 866-356-1735