eguide Improving Business Performance with HR Technology
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1 eguide Improving Business Performance with HR Technology
2 If only there were more hours in the day to run your business, right? You re not alone there. According to a survey by Accounting Today, small business executives report spending about 25% of their time doing employee-related paperwork. In an 8-hour day, that s two hours spent not growing the business. Importantly, executives say they would much rather be spending time generating revenue. What s more, spending time on employee-related paperwork has some real costs attached to it. A recent study by PricewaterhouseCoopers found that small to medium-sized companies spend an average of $2,000 per employee per year on administrative paperwork related to payroll, heath care benefits and time and attendance. Time and money. Two things most entrepreneurs need more of on any given day. And the surprising thing is that there are new ways to get more of both: through technology applied to human resources. A Look Inside HR Technology Computer systems designed to help businesses manage employees are often referred to as human resource management systems (HRMS) and human resource information systems (HRIS) HR technology. These systems integrate data and processes, with tools that make it easy for managers and employees to do it themselves, online, in the cloud, with mobile apps, and without paper. The streamlining saves resources, money, person-hours and enables everyone to handle their own HR when it s convenient for them, unlimited by a 9 to 5 clock or even a specific office or geographic location. The Society for Human Resources Management (SHRM) regularly surveys a range of differently-sized companies, and regardless of size, respondees report the following benefits of HR technology: Greater information accuracy Shorter process times Reduced administrative paperwork Workforce management without increasing staff Positive ROI 2 TriNet.com
3 The Evolution of HR Technology Generally, HR technology falls into a few categories: Commercial desktop applications like spreadsheets HR management applications licensed from a vendor HR technology custom-developed in-house by IT staff Comprehensive HR technology systems provided by an outsource, accessed via web portal Desktop App: The most basic HR technology is the first in that list, the spreadsheet designed to log HR functions, categories, data, etc., which requires an abundance of person-hours to gather the data, enter the data and make sure it s accurate. Licensing and Multiple Vendors: The next step up is licensing various HR applications from various vendors. You can outsource to multiple vendors, using each for a specific task and area of process expertise. This approach often entails finding a payroll vendor, a benefits vendor, another for your 401(k) plan, and so on. The upside is you are accessing experts and their systems to get the administrative burdens off your plate. The downside is the amount of time you still may spend managing the various vendor relationships. There is also the issue of lack of control over long-term costs for each service. And often the vendors and their systems don t align with yours. Their business approaches may be at odds with each other or with your company as well. This way of spreading the HR chores out may appear to be affordable and efficient separately, but may turn out to be an unwieldy solution over time. In-House Customization: The in-house approach to customized HR technologies built for your specific needs by your own people can be extremely affordable. Your team will do the planning, and outlining and designing to meet specific company needs, and will build programs to answer those demands. This is potentially very appealing in the short term. But keep in mind that your company owns all the liability. One missed deadline in payroll, tax administration or compliance, or a misunderstanding of a regulation, a process; or a few glitches in the software, and the cost of going in-house increases dramatically in terms of potential lawsuits, penalties, fines, and missed business opportunities. Single-Source Outsourcing: In terms of technology, the best Professional Employer Organizations have developed a single information system platform that powers all of their HR software systems. Many of them have also developed user-friendly business intelligence that aids executives in decision-making, specifically related to salary levels, compensation trends and workforce performance data. These online tools reduce paperwork and the overall administrative burden for small businesses. They are especially helpful for companies with multi-state workforces. TriNet.com 3
4 The most advanced HR technology providers can streamline the processes for managers and employees, offering total access anytime and anywhere to the most important elements of their HR data. Today, so much HR is done via smartphone and tablet that even desktop-only access can seem obsolete. Here are just some of the processes enabled by current outsourced HR technology: The HR Cloud for Managers: Benefits selection and costing Benefits enrollment, including open enrollment, new hires, life status changes Payroll processing and tax administration Workers compensation administration, including claims reports and administration Federal and state employment law regulations, compliance, guidance and materials Recruit top candidates using the latest social networks, apps and data-mining tools Gather and report accurate data automatically, delivered to dashboards, enabling sound business decisions Improved workforce productivity through regular performance management The HR Cloud for Employees: Benefits enrollment, including open enrollment, new hires, life status changes Career development Direct deposit changes Expense reporting, approvals and payments automated Travel booking of all types Performance management Pay statements Pay schedules Surveys Leave and paid time off requests Time and attendance reporting Training W2 viewing W4 changes 4 TriNet.com
5 The use of a cloud system, supported by certified HR professionals working with clients as a team, relieves the minutiae, paperwork and worry that many business founders and executives deal with when they handle HR themselves. HR technology improves the gathering of accurate data, delivers reports that can be customized to company needs, and supports more informed decision making while offering improved and measurable returns on investment. Furthermore, recent industry surveys show advantageous numbers related to HR technology: 40-50% less time spent on HR administration Up to 40% administrative costs savings Up to 6.5% increased value of business The Future of HR Technology: Five Trends What does the future hold? More than ever, HR technology will become even more useful in working efficiently across all facets of human resources management. As identified in a 2013 Society for Human Resources Management report, these are the five top trends. 1. Cloud data security. Mission critical for both employers and technology providers. 2. Mobile access for everyone. Doing business and accessing personal HR data from a smartphone and tablet is now common practice among executives and employees alike. 3. Social media growth. The more social media is embedded in daily HR processes, the better communication and collaboration can be across the organization and even outside it. 4. HR terminology and systems become more standardized and global. Look forward to more integrated and interconnected systems, databases and tools, leading to better and more accurate data collection and usage. Remote workers and offices continue to expand, encouraging employers to be more innovative with collaboration and tools. 5. Linking HR data to business performance. Sound, strategic collection and analysis of HR data continues to guide business decisions, improve forecasting in both short and long term scenarios, identify critical skills gaps and enhance company performance results. TriNet.com The future of HR certainly hinges on technological advances and a company s ability to effectively implement that technology. Ultimately, the combination of technology and human interaction will play a critical role in the growth and success of a business and its employees. 5
6 About TriNet TriNet is a leading provider of a comprehensive human resources solution for small to medium-sized businesses (SMB). We enhance business productivity as a human resources partner, managing HR so clients can focus on operating and growing their core business. Our HR solution includes payroll processing, human capital consulting, employment law compliance and employee benefits, including health and retirement plans and workers compensation. Our services are delivered by our expert teams of HR professionals and enabled by our proprietary, cloud-based technology platform, which allows clients and employees to efficiently conduct HR transactions anytime and anywhere. For more information, please visit TriNet.com Disclaimer The contents of this white paper have been prepared for educational and information purposes only. The content does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyer-client relationship between TriNet, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without seeking professional counsel TriNet. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Feb a y5ss Learn more at TriNet.com or call Ambitions Realized
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