HR Updates & News

Happy New Financial Year!

The last week of March demands a lot of attention, and scrutiny. As we go through the numbers we also get into a reflective mode. Because numbers tell us how much of our efforts actually converted into results. At Opportune, we are in a celebratory mode, as we grew almost by 80%. I congratulate my team, our partners, and you the readers, too.?

But wise businessmen never just see the numbers in isolation.

We also ask ourselves, the results came at what cost? And HR cost is a significant cost for all businesses.?

In this edition of the newsletter let's focus on the hidden cost of HR.?The 'penalty' that many businesses pay for ignoring the HR function, for not making HR a priority in the business.

What's the hidden cost of HR?

We know the money that we spend on salary and incentives, training and development, and other such costs which go in our books. But there are many intangible costs that a company 'pay' which aren't so obvious.

Like the cost of high employee turnover. When the employees leave regularly, there is a cost for new recruitment and onboarding, and also a cost for offboarding the employee. The handover process itself needs time and effort.

The momentum of the team is influenced negatively. And other employees also start looking elsewhere. An employee who is dating other organisations can't be expected to perform at his best.

So productivity is lost, too.

These are hidden costs, that don't go in the books, but we pay for it, anyway.

................................................................................................................................

While the cost of recruitment, onboarding and training a new employee is significant, even more important is the?'organisational knowledge'?that we lose with a good outgoing employee. That's something that we can't replace or buy with money.

Can automation be a solution? Yes and No!

Many of the hidden costs are associated with manual (Or admin centric) operations of HR. In such a scenario, compliance is often not up to date. And a lack of updated employee database results in many errors. Data security is at a risk. Excel sheets are prone to many errors, and even desktop HR software slows down HR operations.

In fact the cost of manual HR itself is a prominent, hidden cost as per the experts!

In the absence of Employee Self Service, employees are often not aligned with organisational goals. Due to delay in approvals, the work-momentum suffers. And when data is not readily available, data-driven analysis isn't possible. These all results in productivity and efficiency losses for the organisation.

So we can say, HR automation is a big step towards minimising hidden HR costs. But that's not all. HR must also work on creating a culture of achievement in the organisation. Employees must feel a sense of belongingness to the organisation.

The cost of disengagement!

Sometimes managers get concerned over the cost of engagement activities. But before crossing out such initiatives, we must also take into account the cost of 'disengagement.'

A disengaged employee drags himself through the day, tick marking his tasks and looking at the watch for the day to end. With such a workforce, can we even think of big investments in the machinery, launch of a new product, or an aggressive marketing campaign???

The costs of disengagement are exponentially higher than any investment in engaging the employees. That's why companies are now actively investing in Employee Pulse Monitoring. It is always better to course-correct and catch the disengagement in its early stages.?

Let's put the learning into action!

Here are some quick steps for minimising the hidden costs of HR in your organisation--

-- Recognise and address recurring errors. How these can be eradicated permanently. -- Go for 100% HR automation. Streamlining of HR processes will help us reclaim transparency, productivity and engagement. --Implement time-sheet approach in your organisation; it will help you understand the real cost of Work-hours VS the billable amount. -- Be aware of industry benchmarks for salaries, employee turnover and productivity. Compare yourself with the best and work towards achieving those goals. -- Implement Employee Pulse Survey in your organisation. It is cost-effective now.??

Resources:

Articles:

The hidden HR costs, revealed:? https://www.moorepay.co.uk/blog/revealed-the-hidden-costs-of-manual-hr-administration/

Hidden cost of manual and admin-centric HR: https://www.opportunehr.com/HRMS-blogs/why-smes-should-migrate-from-desktop-hr-software-to-cloud-hrms/

Employee Pulse monitoring now available for small businesses: https://www.opportunehr.com/HRMS-blogs/employee-pulse-monitor-is-now-available-for-sme-businesses/

Videos --

Hidden costs of high employee turnover: https://www.youtube.com/watch?v=wMRTSRSQVmc

Cost of disengaged employees: https://www.youtube.com/watch?v=J40BpKpphcE

Do share your recommendations, insights and thoughts with us:

[email protected]

www.opportuneHR.com

Linkedin:?https://www.dhirubhai.net/company/opportune