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Human resources play a key role in moving businesses in the right direction and helping employees achieve career goals. Because so many companies still rely on outdated processes and technology to manage their human capital, consider the following strategic tips to improve HR efficiency.

HR Improvements? Managing and Maintaining An Efficient Workplace

Individualized Management

Most HR managers make the simple mistake of viewing employees as company assets that should be rewarded through salaries and career opportunities. Research by Gallup corroborates that almost 90 percent of employees are not engaged around the world. Poor employee engagement rates are usually connected to low salary levels, but also to employee satisfaction and motivation levels. To combat this, managers must be aware that almost all employees appreciate a personalized approach to daily management processes.

Employees want managers who take a personal interest in their lives and understand their individual situations. Managers who encourage employees to continue their education and move up to higher positions will drastically lower employee turnover rates. Employees also appreciate scheduling flexibility and cross-training opportunities. In order to learn more about their employees, many companies utilize personality inventory tests. Managers should be aware that as workforce diversity becomes more equally divided, they must adjust their managerial approach to ensure that all employees receive appropriate solutions and opportunities.

HR Software Programs

Many HR managers have traditionally relied on Excel spreadsheets, but most companies are transitioning to human resource information systems (HRIS). Any kind of HR software for small businesses will help small or medium-sized business input, process, and access vital information. For example, HRIS programs are used to manage everything from employee vacation scheduling to workers’ compensation claims to job performance evaluations. One of the best advantages of an HRIS is that data is only entered once for all HR-related tasks. HRIS programs offer data integration and thus expanded reporting capabilities.

Some HRIS programs actually offer self-service options. For example, employees may update changes to address or dependents, but supervisors can also enter data regarding performance reviews. HRIS programs are designed to host company-related documents, such as employee handbooks, safety guidelines and quality procedures. They also provide benefits administration functions, which includes enrollment and reporting, as well as recruiting management, which includes applicant tracking and management. Bear in mind that HRIS programs must be protected by top notch security to prevent unauthorized access to sensitive employee information and confidential HIPPA data.

HR Metrics

HRIS programs provide real-time data and metrics that will help business leaders gauge the efficiency of HR management processes. For instance, HR metrics can show the overall process duration times for new employees. HR managers can measure how long it takes for performance appraisals to be completed and the length of time between when HR hiring processes start and end. Knowing the average number days to hire will help operational managers with scheduling. Being able to identify when and why employees quit will help reduce high turnover rates. Research shows that it costs most employers $3,500 to hire a new minimum wage employee.

All HR processes should have a projected time line. This is critical for certain legal processes, such as filing workers’ compensation paperwork within 24 hours of the incident. Failure to file legal forms in a timely manner may result in fines or future legal problems. Health care reform means that there are new provider reporting requirements. The Affordable Care Act (ACA) mandates that any organization providing health care coverage must submit reports to the IRS regarding things like sponsored plans and health insurance carriers. All HR hiring processes must be optimized in order to increase business efficiency.

Overall, HR departmental efficiency can be improved through customized supervision, human resource information systems and ongoing reviews of HR data.