Every HR team faces problems both in the running of their department in General.
Employees are the lifeblood of every company, providing the skills and experience required to keep productivity levels up. Your business will also have invested significant time and money into ensuring maximum productivity wherever possible. And the key HR responsibility is to protect this valuable asset.
Employee retention is a fine balancing act between company culture, remuneration and incentives. The HR department needs to provide each employee with the right combination of all three to satisfy the employee without compromising company interests in the process.
Whether recruitment is handled solely by the internal HR department, or with the assistance of a third party, it is essential that the process is managed centrally and effectively. Whether to complement the existing workforce or to replace staff lost through natural attrition, the second major challenge facing the Human Resources’ department is recruitment of talent. As an added benefit, having the details of a selection of suitable candidates available for easy consideration cuts future recruitment costs and shortens the time taken to plug a skills gap. Speeding the recruitment process in this way prevents drops in productivity and morale.
This determination is often made by carrying out a Time and Motion (T&M) study to define who does what and how. This study can then be used to identify potential efficiency gains and pave the way for future capital investment to improve productivity and conditions. With the workforce headcount issues sorted, the Human Resources team must next look at productivity levels to ensure that the business is operating efficiently. Where productivity is low, HR needs to know whether the problem is caused by poor working practices or lack of resources.
Freelancers and contracts provide an attractive way to augment your company workforce skills and abilities, without the need to permanently hire new staff. This is particularly relevant to projects and contracts that require specialist knowledge, but which are unlikely to become a routine part of your company requirements.
However, outsourced employees present new challenges when trying to ensure they meet internal standards and requirements. Do they hold qualifications or industry body memberships? Have they undergone standard company induction training? You may need to know this kind of information at some point in the future, even if it does not seem particularly relevant at the start of their contract.
In the same way that you record the employment details of permanent staff, it is essential to keep the same information about contractors, consultants and outsourced employees. Your ideal HR system should let you maintain clearly labeled records of temporary staff for easy retrieval in the event of a future dispute. Or even just to make it easier to re-hire the same people in future.
Responsibility for payroll falls between the remits of the accounts and HR departments, often leading to problems with accurate payments to staff. HR maintains records about salary, benefits, bonuses and attachments of earnings, whilst accounts are tasked with actually making the payments. This creates a potential disconnect that can lead to the payroll being run late or employees receiving the wrong sums in their wage packet.