Making HR your business
By Bill Copeland
If you don't take the time now to put strategic Human resource plans in place,
trouble may be looming on your horizon
A common misperception in many companies is that human resources software exists solely for the use of that department. And that's no surprise, as the majority of HR software tools are used to automate HR transactions and the administration of benefits, which falls clearly within the department's responsibilities. However, given that employee compensation and benefit costs remain one of the company expenses, shouldn't senior management at least see how HR is using these tools?
HR is swamped with the administrative side of its job, so it rarely has time to investigate tools that could have an enormous positive impact on your bottom line.
Sadly, most HR professionals report they still spend the majority of their time in administrative functions. Although this has been the case over the years, it is now approaching a crisis point as companies constantly re-organize, downsize and get swamped with résumés. There is little time for more than the basics.
However, this crisis has a big impact on company profits — directly through lost productivity, longer time to fill positions and higher recruiting costs, and indirectly through lower company market value.
If your company is not taking steps to improve HR efficiencies, attract and retain top talent and put strategic HR plans in place now, then trouble looms on the horizon.
One of the key ways to boost company efficiencies, market value and profit is to leverage HR technology to improve process.
Senior management should get more involved with HR to explore additional tools that will help drive efficiencies companywide. This may involve expansion of current HR tools or a new system altogether.
Examples of software tools that go beyond the basics of benefit administration include:
Self-service These tools provide an incredible return on investment, just by using them for benefit enrollment alone. But don't stop there. Add capabilities that let employees change their demographic information, request time off, review company policy, review job postings and provide for employee suggestions and you have increased efficiency, improved the accuracy of your data and raised employee morale — all in one swoop.
Online employee reviews Besides eliminating paper, these tools help ensure timely employee reviews (a main union grievance) and provide documented record of performance data electronically, which is easily accessible by managers, HR and senior management. This should be an important part of your risk management efforts.
Metrics Companies can identify, track and analyze key variables by job function and business need to highlight human capital trends, and the interaction of key variables, to develop human capital strategies that align with corporate goals.
Simply put, Metrics provides a clear statistical perspective on human capital performance. Taken a step further, it provides a benchmark for management to measure itself against company goals and objectives, as well as industry standards.
Metrics can be implemented at all levels, starting with basic data, such as days to fill, cost per hire and turnover rate, progressing to more complex metrics such as employee satisfaction and quality of hires, which might involve a combination of factors and/or formulas to calculate.
Metrics has enormous potential as a business tool to analyze the impact of HR programs and initiatives; to develop HR strategy and align HR programs with corporate objectives; to link performance and compensation for important roles; to analyze department and company health; and to compare company metrics to industry metrics. Firms have been slow to adopt metrics, although this tool can link HR, operations and finance, allowing everyone to speak the same language.
Succession planning Does your workforce have the skills to meet future demands? Which employees can cover key positions? Who is being groomed for management positions?
In the near future, a huge shortfall is expected in the number of people available to fill open jobs. Companies should be looking at skill development and training, as well as methods to motivate, reward and retain employees. You need to set strategies and plans for how your company will do business when the bodies are not there to fill all the jobs. Succession planning tools can help lay the plans for tomorrow.
Applicant tracking In a down economy, companies have been swamped with résumés. In the majority of cases, job candidates have been ignored, most not even receiving a "we have received your résumé" e-mail. These candidates now have a negative view of the company. Consider how they will feel when your recruiter comes knocking at their door in a few years when good candidates are scarce.
Applicant-tracking tools let job candidates enter or update their résumés, check the status of their submission and feel they are getting attention from your firm — all helping company perception.
HR encompasses a diverse range of activities, so it is not surprising that HR vendors fall into two basic camps: specialized HR software and human resource information systems (HRIS).
Specialized HR software vendors typically provide solutions that address a specific HR practice, such as recruiting or performance management. Many large firms have elevated these functions to a science.
The main drawback is that they only address a single HR issue. There may be other HR issues that will surface afterward. Also, specialized packages can carry hefty price tags and do not readily integrate with other aspects of HR, taking a standalone approach. This may be a perfect solution for your company today, but it adds greater difficulty and expense if you start adding multiple applications to address other HR needs and wish to tie it all together down the road.
HRIS vendors offer a more complete solution that covers multiple HR functions, such as recruiting, benefits administration and training administration, all in one. Many of these vendors let you add modules at a later time if you don't wish to implement a specific function initially.
 The HRIS approach is attractive to small and mid-sized companies that need tools to streamline multiple HR functions at a good value. There are large HRIS vendors with expensive price tags, and a growing number of smaller vendors that offer excellent value.
The major benefit of the HRIS route is the integration of all HR functions, making it easy to access and analyze a wide range of company data.
Departments typically funnel their report requests, such as current company headcount, turnover rates and recruiting costs, through the HR department. They must rely on those resources to get the answers they need in order to develop run rates and budget projections.
Those outside of HR do not really know what these HRIS products are, or what they can offer. In the strictest sense, these systems automate HR processes and improve the efficiency of HR transaction times. But if you stop there, you are selling HRIS short. They can do much more. View these systems as strategic tools to optimize your human capital staff and costs, provide you with a glimpse of the skills gap and help you develop strategies to bolster market value and make a positive impact on the bottom line.
In too many cases, HR departments utilize these systems to automate the administrative side of HR, never crossing over to the strategic side.
Others in the organization, including the CFO and CEO, should have access to HRIS to take advantage of the wealth of human capital information available.
This would provide real-time access to human capital data, including organizational metrics, to monitor effects of new programs and initiatives and develop new business strategies for continued success.
Bill Copeland is marketing manager for NuView Systems, a provider of Web-based HRIS. He can be reached at bcopeland@ nuviewinc.com, 1-800-244-7654.
Technical editor: Carolyn Cohen, CA, MSW, president, Carolyn Cohen Training and Human Resources Consulting
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