Cutting down time-consuming processes to help HR deliver accurate results quickly
HR knows all too well that managing headcount is time-consuming and, at worst, convoluted and complex—especially in larger organisations. Pressure is on HR to become more strategic but balancing this with cumbersome operational roadblocks is a major challenge. HR Magazine recently met with Ashley Clarke, COO, FlexSystem—where they have innovated to help HR with these issues.
The beginning of a new year is always a time of reflection. Companies will be asking themselves what has been achieved or lost, and want to bring those experiences to the new budget year. For HR at this moment in particular, the questions that are being asked vary depending on company size but it may typically include working out total headcount expenditure, on-costs for pensions, travel, training and timing for changes throughout the year.
This year the outlook for Hong Kong and the region is not looking bright and recruitment is slowing down, especially in some sectors like retail and tourism, indicative that the monthly budget and forecast cycles will be more intense. Ashley Clarke, COO, FlexSystem commented, “Organisations are aware of this turmoil and at this moment, are trying to work out the resources with senior management that are required for various scenarios to sustain operations and compete over the next financial year, with a particular focus on where they are going to expand and cutback.” The start of any new financial year is also the optimal time to streamline software processes to support strategies that help organisations develop a more intelligent and agile workforce.
80% on process, 20% on results
Market conditions are going to be tougher and HR needs to make decisions with senior management about headcount and compensation, but to do this they need to understand where they are today. This can be challenging because of the effort required to get a complete view of the current situation, not to mention the impact on budgets of unforeseen staff changes, delayed or unauthorised hires, and outside influences such as FX rates, that might affect the business results as a whole.
As Clarke explained, “If you just think about compensation calculations for budgets and forecasts for different industries, it’s a highly repetitive and integrated process. There are many interdependencies across many functions for everyone in the organisation, and any payroll output must comply with the relevant country Employment Ordinances, such as minimum wage. Calculations can also be tough for things like commission because there may be points of sale for varying products with different profit margins and possibly tiered commission payments making the process of working these out extremely difficult. Due to time constraints, and despite best intentions to do so, ranking and comparisons are not frequently done, adhoc spreadsheets are used to solve problems which then may get lost or are incomprehensible when an employee leaves and, in more complex cases, best estimates may be used for variable pay calculations.”
Fortunately, the latest software offerings aim to put HR in the driving seat by allowing them to leverage existing business systems and start to get more proactive, with systems working for them and not the other way around. With advanced technologies, HR can significantly reduce effort by deploying highly secure, user-specific software processes end-to-end, by leveraging systems already in place. Software can help with data collection and all process flows, from complex commission calculations to reporting. It also provides solid and reliable contextual insights for decisions, not only in the office where they are located, but across all entities under its remit, to gain much needed transparency.
Ashley Clarke, COO, FlexSystem
Process with zero footprint
Speeding-up operational processes, and perhaps eliminating them, is no longer a ‘want’ but is a ‘need’ for HR and this is where FlexSystem’s advanced technologies and know-how comes into play. For the first time, Clarke claimed, the software enables complex processes and tasks to be undertaken and deployed by end users with few barriers. He added, “When you remove process steps, you remove friction and when those steps become repeatable, you suddenly have a lot more to gain because you are retaining that information and not having to design it all over again, even when staff move on unexpectedly.”
Moreover, because these pieces of software can be deployed over the internet with no software —i.e. creating zero footprints—the process comes with simplicity for the end user. Of course, that does not mean trading off functional capability, as processes can be very granular. Collaborative reviews can also be undertaken in training mode which allows HR to evaluate process steps, even for the most complex commission calculations, so that new staff can quickly understand what is being performed by the computer system.
Proactive HR
Clarke explained, “Not only is time freed up in processes but additional new technologies, such as continual monitoring and business simulations, can come into play on standard machines to drive HR forwards. Continual Monitoring, using Virtual Software Assistants, provides contextual alerts with relevant output. An example there might be consultants in the region who are fully utilised, but who have not yet taken any holiday and could be at risk of leaving. Another, from a recruitment perspective, might be receiving regular automatic aged unfilled key position listings from all operations. Processes can be based on simple or complex assessments and can be deployed with no software at each operation.”
Business Simulations allow you to run scenarios to assess business impacts. An example might be the budget sensitivity of joining and ramp-up times based on past experiences. Another might be an assessment of required headcount based on productivity levels achieved in recent years. These business simulations effectively allow organisations to take a snapshot and to experiment. Clarke added, “The key is driving value through shorter cycle times, better quality insights and lower costs of delivery of the planning process.” One key point here is that the process, reporting and visualisation is done in one go, even for compensation calculations, meaning that it is auditable, repeatable, fast and reconciles underlying payroll information at every stage.
Cruising through the fast lane
Despite the benefits, the idea of a major technological overhaul and replacement might sound like another headache in waiting but Clarke insists that such changes are not necessary as existing systems can be leveraged and solutions can be used to provide the glue between those different systems. Corporates can keep different systems in different places, but it does not mean they cannot reap the benefits that newer business systems can offer.
Through such systems, and by reviewing the time taken on a process, HR does have the capacity to save time for the more strategic tasks that it is being asked to do. With companies now demanding their human resources departments take on more responsibilities, it could be of huge benefit to find ways to simplify and speed up all complex processes and complex tasks in favour of spending more time on the strategies that CEOs are eager to press ahead with.
Paul Arkwright
Publisher
