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Profit Leaks are Killing Your Company: A 5-Part Series
Reality Check: You Have Profit Leaks
As any CFO knows, inefficient HR administration drives up operating costs. HR inefficiencies that eat at your company’s bottom line include the following:
- Data barriers
- Syncing multiple systems
- Transactional inefficiencies
- Employee turnover and engagement
- Poor adoption of HR technology
Profit leaks are the silent killer of your company’s revenue and it may be happening without you knowing it. They erode your bottom line through needless duplication of effort; data inconsistencies that introduce compliance risk; barriers to data-driven decisions; and so much more.
Even if you know what profit leaks are killing your bottom line, you need a plan to stop them once and for all. It’s time to have a conversation with your HR manager to identify your company’s profit leaks and collaborate on a strategy to stop the silent killer once and for all. As part of your strategy, an all-in-one workforce management solution can help streamline common HR tasks; improve decision-maker access to data; reduce compliance risks; and, importantly, offer cost efficiencies that can often be realized immediately.
56% of organizations with 2,500 or less employees are adopting some type of workforce management solution. Source
In part one of this five-part series, we’re going to discuss the first profit leak, data barriers, and how lack of visibility into company trends and metrics can leave you bleeding profits.
Part 1: Data Barriers
Data-Driven Decision Making
CFOs understand sound financial decision making begins with a data-driven mindset. But do HR administrators? Do department heads? You might be surprised.
Before managers can make data-driven decisions, they need access to accurate facts and information. The right HR technology puts information in the form of dashboards and quick reports at their fingertips. It’s why visionary CFOs act as strategic partners in decision making by investing in HR technology that puts powerful data in the hands of those who need it most. Does your organization have the right technology to make data-driven decisions?
|Does your HR system include reports, dashboards, and analytics that allow management to make timely, proactive decisions to support the workforce and business goals?|
When HR administrators use data like finance does, it allows for more informed decision making regarding your human assets. Even in days of manual bookkeeping, the finance department always had data at its fingertips. So why is it so impossible for HR managers to have access to data regarding employees?
The answer is it’s not impossible, but the data is not easily accessible. It’s scattered across a myriad of HR platforms the way financial data was once buried in multiple ledgers. It’s time to unbury and unify your workforce data so HR managers can contribute to decision-making processes with a finance-like approach.
“Companies must ensure that finance, HR, and the business have the same level of information and all provide collective input into relevant decision making.”
– L Krishna Kumar, Group CFO, Tata Global Beverages
In our next profit leaks article, we’ll discuss syncing multiple systems.
Want to learn more about how profit leaks may be affecting your business? Download your free copy of CFOs: It’s Time to Talk to HR About Finances.