Workforce Planning With Centralized Data
The role of technology in workforce management is quickly evolving. These days, organizations must have an efficient, unified payroll and HR system, or they face increased costs, unnecessary labor, and even compliance issues.
Organizations that use a single-system workforce management solution for payroll, benefits administration, and other human resources tasks are better able to control labor costs, minimize compliance risks, and improve workforce productivity than those using older technology and time-consuming, error-prone manual processes. The right integrated system can help your company unify, manage, and pay its workforce, and provide key insights for decision-making.
Organizations are struggling to find the balance between workforce development and retention while using quality data to make decisions about labor expenses. They need better workforce planning capabilities to execute strategies and reach goals (see Figure 1).
“Fifty-two percent of organizations indicated that having better access to workforce data to drive decisions was a key motivator of their total workforce management strategy.”
—Aberdeen Group’s May 2014 study, Core HR and Workforce Management
Integrating your payroll and HR data is the first step in better decision-making because unified data powers more meaningful reporting. Analytics is not just about gathering data; it is about the process of turning data into information, information into insight, and insight into action.
Unified payroll and HR data leads to powerful decision-making.
A centralized system of record for HR is imperative for managers and business leaders to leverage HR data and make better decisions. This centralized source helps ensure that data used by reporting tools is accurate and consistent, and it helps eliminate duplicated efforts by updating changes in real time.
“SaaS, or Cloud HRMS deployments, are on the rise. … [B]y 2015, 58% of respondents will have a SaaS HRMS compared to a maximum of 51% that will have a licensed HRMS solution.”
—Sierra-Cedar 2014–2015 HR Systems Survey White Paper, 17th Annual Edition
Integrating antiquated systems can be difficult, especially across multiple locations and states, so many organizations are adopting online payroll and HR systems. Software as a Service (SaaS) and cloud-based delivery models have become staples of best business practices. Their inherent flexibility and integration capabilities allow organizations to unify workforce data with organizational initiatives. This results in overall cost savings, including:
- Increased control of labor expenses: An integrated payroll and HR solution helps manage labor costs by providing timely insights; for example, standardized reports show key business analytics such as labor expenses, overtime, and benefit costs.
- Improved compliance management: A unified system simplifies compliance with wage and hour (FMLA) regulations, as well as local, state, and federal rules. A secure, centralized database for all payroll and HR data ensures greater compliance and helps avoid penalties.
- Streamlined benefits administration: Benefits management in a unified system ensures all eligible employees have been offered coverage, benefits are not paid for ex-employees, and all pertinent data is transmitted electronically to benefits providers.
- Simplified ACA compliance: For many organizations, managing ACA compliance manually in separate systems is proving challenging. Adopting ACA compliance tools that are integrated into a single HR and payroll solution provides significant cost savings by preventing penalties, and also saves time compared to compiling data manually or from separate systems.