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Profit Leaks are Killing Your Company: Part 5
In part four, we looked at how turnover and employee engagement issues can cost your company millions of dollars if left unchecked. In the final part of this five-part series, we’re going to discuss the poor adoption of HR technology profit leak and how a CFO and HR collaboration can stop profit leaks once and for all.
Profit Leak #5: Poor Adoption of HR Technology
Often, businesses implement HR technology without thinking through the strategy of how it will be adopted across departments. Not utilizing features such as benefits administration, self-service options, and analytics dashboards can lead to missed opportunities when streamlining and automating processes. To prevent this type of profit leak, it’s important to maximize all of the benefits of the investment by establishing a strategy for company-wide adoption.
Identify current and future business needs and develop a plan that aligns your HR technology with the business strategy.
- Understand how the HR technology will scale as your business grows.
Prioritize the adoption strategy by considering how much time will be needed to fully integrate the HR system with your business processes.
- Carry out the adoption strategy in phases rather than all at once for more attainable goals.
Determine what will need to happen within your organization for a successful adoption and who will be involved in carrying out those tasks.
- Adequately train and communicate with everyone involved to ensure a faster return on investment.
How Collaborating with HR Helps
A partnership between HR and the chief financial officer is vital to putting in place an integrated workforce management system to properly capture, analyze, and report the data associated with the workforce. Only then can data-supported conversations about the drivers of corporate performance occur.
According to a recent Ernst & Young study, companies where the CFO and HR are strong collaborators experience:
- Faster growth – 41% experienced EBITDA growth greater than 10%
- Better HR performance – 44% saw a significant improvement in employee engagement
- Higher workforce productivity – 43% saw significant improvement in workforce productivity
Get Aligned with HR
Your HR manager could be doing more to achieve business goals and execute strategies by helping you fix profit leaks once and for all. It’s time to talk to your HR manager and align your goals using the right workforce management technology.
Assess Your Company’s Financial Health
☑ What is the ROI with the current HR technology?
☑ How difficult is it to pull key analytics and metrics?
☑ How many timekeeping and payroll errors occur each pay period?
☑ Do we have visibility into employees reaching overtime?
☑ Are we keeping paper files on our employees?
☑ How much data is kept in spreadsheets?
☑ Do we have an external benefits administration system or no system at all?
Are You Asking Your HR Manager the Right Questions?
☑ How much time are you spending on transactional processes?
☑ What challenges are being faced with the current HR technology?
☑ What strategic goals are you not able to achieve due to lack of resources?
☑ What challenges are we facing with reporting and visibility into key data?
☑ Would an automated system help your daily responsibilities?
☑ If we implemented a unified database solution, would you be able to provide the key data for more informed decision making?
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.