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High Costs to Manage HR

  • It is costly to manage the recruitment process. You manually track resumes and applications, but there are many and it takes too much time to review them and look back for information amongst applicants. It is too difficult to match skill sets with job requisitions, and the way the hiring manager gets the information he/she needs is inefficient. There is too much time and too many costs associated with the process you use today.
  • The process for entering/tracking information when an applicant becomes an employee is inefficient. You have to reenter information into another system, and this takes too much time. The impact of those costs on your overall budget is negative.
  • There is additional information you’d like to track about your company, division, department, position, applicant and employee that you are not able to. Your current approach to tracking/reporting on/analyzing
    this, if not within your application, is inefficient. If you need modifications, it costs too much for your consulting/IT.
  • Your method of tracking demographic information is inefficient. It may be electronic, paper, or both. Your PR and HR systems do not share the same system. It is not easy enough to look up information to answer questions, and you are not very confident that it is accurate. You have never estimated what the costs of these manual processes are. The costs to manage/maintain benefit and other HR-related programs is too high.
  • You need someone to answer employee questions regarding their demographic information, life event changes, etc. If you already have someone doing this, he/she spends too much time on that each day. You also need someone to process employee change requests such as moving, dependents, and life event changes (marriage, etc.), or if you already have someone to do this, he/she spends too much time on it each day. You have never estimated the costs of that time, but it is probably high.
  • Your method of fielding calls/questions on previous employees (i.e. to prove “fair discharge”) is ineffective. The place where you store that information makes it difficult to retrieve. If you rehire someone that used to work for you, you cannot easily restore their employee information or you need to manually recreate it (i.e. seasonal). Too much time and money is spent on that.
  • You do not have an orientation process, or if you do, it is inconsistent and you have forgotten a step before. The time and costs associated with that are too high. People involved in the orientation process do not know what to do and when. You may have never estimated what the costs of these manual processes are, but they are probably high.
  • You do not provide employees high ticket/security items – keys, credit cards, cars, laptops, etc. If you do, your method of keeping track of how many employees have one or more of these types of items is inefficient and ineffective. It is not easy enough to know what to collect upon employee separation, and you are not very confident that you collect all property upon termination. Estimated costs associated with lost property are too high.
  • You do not have a separation process, or if you do, it is inconsistent and you have forgotten a step before. The time and costs associated with that were too high (i.e. Cobra, extra pay or benefits, etc.) People involved in separation processes do not know what to do and when. You may have never estimated what the costs of these manual processes are, but they are probably too high. You have had unplanned expenses due to the need to prove fair discharges.
  • You cannot generate enough different kinds of reports today. Sometimes, you need to make custom reports to view information the way you need to see it. You have to hire someone to do this, and that costs too much money. It takes too long to access and compile needed information. You are wasting an unplanned amount of time compiling this information.
  • Your method of processing timesheets is inefficient and you need someone else to do this. Employees either enter their own time into the system (assuming they have a system) or someone else does it. If someone other than the employee does it, too much time is spent on that each pay period and it is inaccurate. It takes too much time to perform basic accuracy checks and to verify information. If time is money, this has had a very negative impact on your budget.

About the Author: AJ Amjad Khanmohamed

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