HUMAN RESOURCES - EFFICIENCY AUDITS
Organic Growth Requires Strategic HR Planning
As organisations grow organically HR too has to grow and also embrace the changes in legislation, technology, organisation structure and reward structure. But all too often the existing processes and procedures continue to be used as these changes occur; either time is not taken to review existing systems and processes in the light of these changes or budgets are not always available even if there is a case for the change. So the function is effective in so much as it is paying people on time and fulfilling other requirements but it may not be efficient.
Common Reasons For HR and Payroll Inefficiency
When working with clients and talking to them about the processes that they use the response is invariably because 'that’s the way that we’ve always done it'. Sometimes the teams simply haven’t thought outside the box but often as not it hasn’t occurred to them to step back and review the function to see if things are being carried out in the most efficient and effective way.
Other reasons for the lack of efficiency is because the full functionality of the HR system used is often not fully understood and so tasks are often being undertaken manually when the system tools could be used to do this automatically. Also, where there are opportunities to fully interface to Payroll or an integrated system, the full functionality may not be exploited which means that there is duplicate effort undertaken including data entry onto more than one system.
Often forms haven’t been reviewed for many years and they may no longer fit the information that is required and results in additional information being sought which adds to task.
Identifying Savings in Workload Whilst Reducing Risk
Closer working with Payroll and other departments can realise some reduction in task where there is duplication of tasks and also no real ownership of tasks or data.
Through reviewing the HR administration processes especially those that are used to gather information about employees that is then forwarded to Payroll, plus other tasks such as processing pay reviews, changes to processes and procedures can be identified that reduce both tasks within the department and risk through removing manual processes and utilising the system functionality.
The Risks of Failing to Conduct Regular HR System Reviews
Failure to review the systems and processes used by the function can result in a significant down turn in efficiency that also impact on effectiveness. It can also mask unnecessary costs and prevent the function realising added value from its systems which would benefit the organisation as whole.
Failure to review processes when new systems are implemented or major upgrades will jeopardise the efficiency and effectiveness of the new system and so impact on benefits realisation.
Paris and Parks can work with your HR team to review the processes and usage of the HR system to ensure these are efficient and fit the business requirements and assist in benefits realisation.
Also See:
Payroll System Reviews,
Training Audits, and
Compliance.