Linking Technology to HR Strategy to Achieve Low Cost-Per-Employee Results

Contributor:  From the HRIQ Editorial Desk
Posted:  07/15/2012  12:00:00 AM EDT
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In a world where there are ever-increasing pressures to make sure that they are bringing the cost of human resources down, one of the best ways to make sure that companies are achieving a low cost-per-employee ratio is to start linking HR strategy with IT software applications as a way to make sure that it costs less to run the department in the long run.

This means that there has been a rise in recent months and years in the number of firms looking to take advantage of human resources information systems (HRIS) which streamline business HR departments by automating systems and offering a range of different programs to take on any number of tasks such as payroll or dealing with holidays and other key issues.

However, one of the key issues to consider, according to ERP-Asia, when implementing such a software, will revolve around its usability and its performance with regard to the data that it outputs. The website said that any program will only be cost-effective if it is making the best use of time and can be easily utilized by staff.

For example, it needs to be the case that any program can return the information which is requested in a timely manner so that the staff accessing it are not simply wasting their time. Also, due to the outlay financially, it needs to be more viable to run the program than to hire members of staff to complete the job.

Another issue which will affect the viability of IT solutions for companies will be the fact of whether or not it can provide data instantly and in a useful format for the company, as it could be costly and time consuming to be constantly having to convert and change things.

According to FastCasual and PeopleMatter, there are also other pitfalls to consider when it comes to the implementation of such systems.

Kay Lucas, PeopleMatter's Vice President of Product Development, said: "There’s been a big influx of software systems and solutions that are designed to help businesses automate and improve day-to-day operations like hiring, training and scheduling.

"But when you’re using a bunch of different systems, nothing connects. So you’re automating your onboarding, and creating weekly schedules is easier, but you can’t share any of that data between those systems. It’s like a silo. Each system is operating separately and isolates all of that data."

In terms of the restaurant industry, Ms Lucas said that there are five main ways that these types of systems can effect business negatively.

These include cost, compliance, efficiency, productivity and engagement. Each of these are key problems which need to be addressed before any firm makes a decision on whether or not it will be worth its while to take on such a system to undertake HR duties.

For example, it needs to be decided whether or not staff who are going to be operating the IT software will be able to do so with ease, as they can become disengaged, and as a result less productive, if it is too hard or complicated to use. 

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