Regardless of the industry to which any organization belongs, Human Resources costs represent more than 40% of the total. According to many specialists, organizations lose money due to errors such as: strategies that are not in accordance with policies, inefficiencies and systems with disparities, and on the other hand, opportunities are lost due to not motivating employees properly and associating their behaviors with the goals and objectives of the organization. Taking advantage of opportunities, reduce the waste of money through many disciplines and tools that leverage compensation and motivation, this is much more evident when they are used to predict the future costs of Human Resources, not only in wages and compensation,but through other motivational techniques that can be applied.
Have you ever thought about:
What was the interval between last year's Human Resources (HR) budget and the results obtained?
How much money was lost because our compensation and motivation strategies did not lead to the organization's behavior achieving the proposed objectives?
What was the impact on revenue when the organization's top interpreters left the organization?
Did we lose our most capable employees due to compensation issues?
What are the consequences of an inadequate prediction?
What current qualification do HR have to develop this plan?
Is the current staff sufficient or do you need to recruit more people?
If these questions are analyzed in depth, you will realize the importance of a detailed and meticulous analysis of costs, or rather, a smart and timely investment in HR.
Why invest in an HR management system?
Many business critics caution organizations to invest in finding tools to improve compensation and motivation processes in terms of time, money and resources, and to provide improvements and adequate information to refine decisions.
In the past economic era, money was the main source of wealth generation in organizations. Those responsible for this saw the need to invest in tools for economic and financial analysis to support decision-making. accurate and timely. In this era, HR has come to play the role of main interpreter. Why not invest in a tool to manage it properly?
In times like these, because you do not have a system to automate this asset, your organization may be facing situations such as:
Those responsible for Human Resources are forced by routine administrative processes that leave them no time for anything else.
Accurate and timely information is needed to support key organizational decisions that are hampered by a reporting system that is inflexible, inadequate and difficult, even though it provides added value to guide managers.
Sophisticated compensation strategies that require the use of huge spreadsheets that exceed the possibilities of Excel or the system being used.
Lack of automation requires days to distribute information to all levels of the organization
Your employees have no way of accessing the information they need at a given moment (Example: they want to know the profile of the position they are occupying)
There is no feedback tool (Example: 360º Feedback)
Variable rewards are not applied to create equity and reinforce group achievement: profit sharing and profits.
An individual remuneration linked to the skills and competences of the workers is not applied.
It is not measured by job performance adequately.
It is important to understand the well-marked difference that exists between a Human Resources Management system and a Payment or Payroll System, there is a tendency to confuse them. Payment or Payroll systems are limited, as the name says, to payment, attendance control, discounts and vacation control, while Management systems have a broader field such as performance evaluation, selection and hiring, among others..
Organizations have quickly understood the need to prevail in the market, generating competitive advantages; To understand the problem, it can be summarized in the following question: How can organizations differentiate themselves in a market that tends to globalize and that facilitates the rapid and massive diffusion of best organizational practices and technological innovations?
The answer is in the hands of Human Resources. Today the vast majority of those responsible are aware that employees are the most important assets that an organization has; These have become the determining factor in the success and survival of organizations. But what are they doing to increase their skills?
In fact, as a demonstration of the conceptual change, it is said that at present, the term Human Resources has been replaced by Human Capital, and thus identify people as an asset (capital) of the organization that must be attracted, retained, develop and build loyalty.
Due to these changes, the HR department needs tools to face its day-to-day work with the necessary efficiency and effectiveness in an integrated way within the organization's strategy.
It is true that the competitiveness of organizations in the coming years is and will continue to be directly related to their ability to attract and retain talent and their ability to take advantage of new technologies in this field; For this reason, there has been a spectacular change in the skills of the HR department, work has been done to make them aware of their important role, and that their strategies must be focused on motivating and identifying opportunities that allow them to achieve compliance with the organization's mission.
Any automated Human Capital Management system must at least allow the organization to:
The analysis of the jobs.
Support in the selection process.
Dedication of the Human Resources department to strategic tasks, freeing them from a significant number of operational tasks.
Improve employee motivation.
Improvement of the internal information of the employees managing to promote the corporate culture.
Centralization, integrity and capacity to analyze information in real time about personal, professional, competences, performance, etc. data.
Remunerate employees in a variable way using the correct parameters and thus increasing their commitment to the organization.
Increase forecasting and resource planning capabilities using analytical planning tools.
Reduce the total cost of the department by about 30%.
Reduce costs and times per transaction thanks to minimal human intervention, paper elimination, process automation, and time management.
Increase worker efficiency by up to 25% thanks to automation of processes, easy access to information.
Support for knowledge management, managing to identify, generate and share it.
Performance management and evaluation, identifying employee performance and developing consequent action plans.
It facilitates the introduction of variable remuneration policies allowing to automate its calculation and communication.
Increased capacity for self-management by the employee, having access to personal information at any time.
With all of the above, we do not intend for the reader to get lost and believe that the use of new information technologies alone are a solution to solve organizational problems and especially those related to Human Resources management, they are not enough. Furthermore, it is essential to have professional resources to have constant feedback on the level of employee satisfaction. And finally; but not least, the communication and implementation of action plans with the organization in order to attract and retain talent.
