data accumulation. Human Resources versus HR dashboards: what are the results for businesses?
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1 Human Resources versus data accumulation. HR dashboards: what are the results for businesses?
2 Dashboard tools presenting a company s key social indicators and enabling business strategy to be monitored in detail are becoming a must have for all businesses. But what does the analysis of this data really offer human resources departments?
3 Businesses, both SMEs and multinationals, are increasingly working with online tools. Computer software and online applications are becoming more accessible for professionals and for their clients. As such, the ability to analyse and take advantage of information collected is emerging as a priority for the business world. Topping the list of services undergoing rapid transformation: human resources. A strategic player in company management, over recent years this department has witnessed the expansion of its task list. A company s success and good rate of growth depends largely on the engagement, motivation, collaboration and skill of the workforce it is made up of. The human resources department should be able to appraise and verify the effectiveness of its work. And as such requires speedy access to reliable and coherent information, while being able to rely on its content at the same time. Nowadays, the management of human resources consists of different and complementary procedures. On the one side, there are personnel management applications, primarily used to monitor work time and salaries. On the other, there are skills development activities in areas such as recruitment, training and individual appraisals, for example. All of these tools generate large volumes of information, which needs to be computerised and stored, whilst remaining accessible in real-time. All this is geared towards distributing information more quickly and in a more up-to-date form and requires cooperation between the parties involved: head of human resources, managers, employees etc. Crossreferencing, gathering and sorting this information creates opportunities for analysis to be carried out to refl ect a company s organisation. This intelligence is a major strategic resource in human resource management and in a company as a whole. However, even if this information is easily accessible; gathering, sorting and analysing it requires the appropriate tools and methods. HR managers could fi nd themselves quickly overwhelmed by the large volumes and, due to lack of time, could miss the information most useful to them. Dashboard tools presenting a company s key social indicators and enabling business strategy to be monitored in detail are becoming a must-have for all businesses. But what does the analysis of this data really offer human resources departments?
4 According to a study by Markess International, 61% of senior management questioned expect HR managers to improve payroll management, with an eye to increasing their contribution to the company s global performance
5 1Improved payroll monitoring Payroll alone constitutes a very large part of a company s expenses. Thorough management of it is essential, not only as a means of controlling the cost in relation to turnover but also as a means of keep employees satisfi ed. According to a study by Markess International, 61% of senior management questioned expect HR managers to improve payroll management, with an eye to increasing their contribution to the company s global performance. Nowadays, it is not always easy to gather payroll-related data and compare it with other key data, in a bid to extract strategic information. The different data often comes from various sources, not supplied in the same format and requiring a lot of work before it can be analysed. An interactive dashboard tool allows payroll-related data to be collected easily and automatically, sorted, analysed and instantly compared with other key data. (Turnover, productivity, social data, previous years fi gures, etc...) 1Clear and accurate monitoring of these indicators allows strategic information to be extracted, to help guide key decisions on issues such as bonuses or resource allocations, for example. 2A dashboard tool can also be used to forecast any change to the payroll should there be any alterations to HR policy, by way of its What if scenarios. 3 In terms of reporting, the head of department can more easily produce urgent ad-hoc studies, whether they require data collected over several years or even provisional analyses. By effectively monitoring payroll data, and using tools to sort, compare and analyse it, potential problems or points for improvement can be identifi ed, which in turn, can help the development and longevity of the company, as well as employee satisfaction.
6 Other priorities in the monitoring of skills: employee retention. According to Michael Page, 93% of companies planned to focus their attentions on employee retention this year.
7 2Real-time skills monitoring For a company, having a connected human resources department means having access to a collection of tools to enable skills to be monitored in real time. Say goodbye to those yearly interviews, fi led away somewhere and neatly arranged in a folder never to be seen again! By computerising the process, and by following any changes to social indicators with the help of a dashboard for example, the company is in a better position to know the skills it possesses internally and, at the same time, respond more accurately to its employees aspirations. This also helps with recruitment and understanding where there are opportunities for internal promotion. This avoids costly external recruitment for future positions. Other priorities in the monitoring of skills: employee retention. According to Michael Page, 93% of companies planned to focus their attentions on employee retention this year. This requires monitoring employee skills, the training offered to them and their personal objectives. Using Interactive indicators such as dashboards allow these variables to be monitored and analysed, and allow the data to be drilled into to identify any potential problems or possible improvements. Those companies who identify the key skills of their employees and ensure these skills are developed, set themselves apart from the competition and signifi cantly increase their revenue in the long-term. Finally, by creating a completely connected HR department and by offering collaborative tools, employees can gain independence in the monitoring of their development. With new solutions, like a centralised online platform for example, employees can enter their own holidays and absences, view their payslips, provisional schedules and their individual evaluation meetings. Different training schemes on offer are also easily accessed. Being better informed and being able to act directly within the scope of their role within the company, employees can become part of the management of human resources as much as the managers and directors. 10% 30% 10% 60% % 22 30% 60%
8 The role of HR is still being monopolised by purely administrative and managerial tasks. 64% of the time is spent in these areas, and only 13% is given to high added value strategic projects (talent management, performance management, etc.)
9 3Better time management The current move to place the human resources department in a strategic, rather than simply a supporting role promotes the emergence of new requirements, particularly concerning the forward planning of employment and skills, and cost monitoring. However, the most recent Markess International survey on the optimisation of HR procedures, published in March 2013, shows that the role is still hindered by purely administrative (pay, personnel administration) and managerial tasks (recruitment, training, etc.) 64% of the time is spent in these areas, and only 13% is given to high added value strategic projects (talent management, performance management, etc.) This is why time management is becoming a growing problem for the organisation of a business from a social and fi nancial point of view. Business intelligence solutions allow reporting systems to be set-up easily, without monopolising a role in the human resources department, and can therefore probe further into pure data analysis and strategy defi nition. As such, by reducing manual and timeconsuming tasks, personnel are freed up to address higher added value activities and simultaneously increase their productivity. With this analysis of human capital, companies can stay on top in terms of aptitudes, employability and excellence. Directors are provided with an instant picture of the skills required and existing in the company, can perform comparisons if they wish and fi nally, can assess their development. Managers who are now informed in real time of their colleagues situation, for example, can now fully supervise and manage their human resources, as the true nature of their role requires. With direct access to management information, managers can inform, manage and simply communicate better with their colleagues. As such, managers can take early corrective action or even forecast occurrences so as to effi ciently reduce the level of absenteeism, for example. Reducing the cost of absenteeism to organisations (which according to Alma Consulting can amount to 550,000 Euro per year for a company of 320 employees), would be felt quickly in the company results. Reducing the turnover rate and optimising the payroll in accordance with departments needs in real time, therefore, can bring immediate benefi ts to the company. With a more independent payroll, human resources management, accompanied by monitoring tools and key indicators, can energise the management of human capital.
10 In many companies, information is still shared by or via Excel spreadsheets; each individual ends up with their own version of the figures, which they may modify as they please.
11 4Better internal co-operation Internal cooperation and the sharing of key information between departments are essential for a company s global strategy to work well. Performance indicators or those monitoring human resources strategy are often the data that is especially demanded across many levels of the business. General management may regularly request summary reports, fi nancial management may need to share information, particularly on payroll management. Equally, heads of department may need the information to ensure the monitoring and development of the employees under their direction. In many companies, information is still shared by or via Excel spreadsheets; each individual ends up with their own version of the fi gures, which they may modify as they please. By using collaborative dashboard tools, it is now possible to share key HR indicators with different users and to interact with them in real time. For example, an employee who fi nds the information they need but who does not entirely grasp all the whys and wherefores, can instantly fi nd somebody capable of explaining the importance of the information by using the comments functions. By using tools which facilitate cooperation, data can be easily shared with other departments. In this way, everybody has access to the same indicators and can comment on them in real time. Another trend: the concept of mobility is becoming increasingly important in businesses. Department managers are increasingly using tablets and smartphones to read reports and stay connected with their business. Using mobile enabled HR tools use allows cooperation to extend beyond the company walls and keeps users abreast of company developments in real time.
12 Conclusion Today HR managers have an increasing amount of data available to them, brimming with opportunities to be used to improve company strategy. A dashboard solution is the simple way to collect and transform this data into information that is relevant for the company. This means crucial time-saving for HR managers, who are increasingly responsible for performance analysis and improvement. These indicators provide clear and usable information, easily shared with the general management or any other management likely to use this data to monitor the human development of their department. Because of this, companies can increase their productivity whilst benefi ting from a better analysis of existing indicators. In combination with human skills, management tools act to respond to the challenges presented by human resources: recruiting, developing, evaluating, training and retaining talent and fi nally getting all the members of the same company working together. In this way, human resources policy is strengthened in the eyes of all company members (shareholders, management committee, social partners, managers, colleagues, etc.) In particular, in the mid to long-term, dashboard solutions can deliver signifi cant improvements to a company s HR performance: reduced absenteeism, reduced workforce turnover, increased efficiency of HR department. These benefi ts can be quickly measured and quantifi ed in the company s results. Finally, one of the key points to remember is that nowadays, these solutions are not difficult to setup and no longer require lengthy projects as they once did in the past. The technology available in the current market, and in particular SaaS mode software, allows these operational dashboards to be set-up in record time. About Access France We are a leading author of fully integrated business management software. One of the UK s top five fastest-growing software developers (Sunday Times Buyout Track 100), over 10,000 businesses and not-for-profit organisations use Access to unlock their potential. Offering solutions for ERP, finance, HR, payroll, warehousing, business intelligence, PSA and manufacturing, our vertical expertise and template solutions allow for rapid and easy deployment, whatever your industry or sector. Case study Find out how ADP GSI were able to offer their customers easy-to-use HR dashboards, thanks to Access Insight
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