The role of workforce management solutions for business growth
May 17, 2018
By Natalie B. Hoffmann, CPA.CITP HKP President
When you consider the foundation on which a business is built, there are four main pillars: financials, customers, operations and people. Each is essential to the core being of the business, and each plays a part in moving a business forward.
While a lot of attention is often paid to the financial side of the business and the customer base, the role of the people – the employees – should not be underestimated. Human capital is one of the most valuable assets a business has and having proper workforce management solutions in place can significantly impact business growth.
When a business owner thinks about the future and how to grow their business, they are often stalled by resources and time. Finding time to spend on strategy, updating processes and implementing new ideas can be a struggle when owners are wearing so many hats. By outsourcing human capital management (HCM), business owners gain back valuable time they would have spent putting out human resource (HR) fires, compiling data for decision-making, and more. With comprehensive workforce management solutions, business owners can delegate some of those routine tasks and get help with HR issues from professionals who live and breathe HCM.
In larger companies, it is easy for internal HR departments to become bogged down by the routine work involved in managing human capital. Between entering payroll, time and PTO requests, managing open enrollment for benefits, and working with multiple vendors to handle it all, resources are quickly drained for internal departments. Additionally, the risk for errors is higher, especially when staff are working across multiple systems. The time spent fixing mistakes or handling compliance issues can be better spent in other ways. When those routine tasks can be outsourced to a workforce management provider, internal staff can focus on recruitment, employee benefits and workplace culture. Plus, in many small businesses, the HR staff may also wear other hats such as accountant or office manager. By taking HCM off their plate, staff are free to work on the company’s next initiative.
Workforce management solutions that offer a single sign-on platform help businesses consolidate all of their human capital information into one place. When employees only need to sign into one system to update employee data, the odds are slimmer for errors and the data comes out cleaner. Cloud-based systems can help keep businesses up-to-date on changes made to employment law through automatic updates and guidance on where the business falls in the compliance spectrum. Owners can run reports to see all of their numbers at a glance or to drill down into the details if needed. Through better data, owners can make better decisions about the future of their company and its potential and timeline for growth.
One of the driving factors of a business’s ability to attract human capital in today’s workforce climate is the benefit package. Employees expect certain benefits and will often choose one employer over another even if the salary is lower in order to get the benefits provided. For a business to grow, it needs the right employees, and business don’t want to miss out on the best human capital they can get by offering a uncompetitive benefit package. Outsourcing workforce management takes a large portion of the administrative burden of administering benefit plans off the employer. Technology allows workforce management providers to set up self-service open enrollment for employees, link those deductions to payroll, and convert the data to process accurately on payday. Plus, direct deposit is now expected by employees and these systems make that easier than ever before.
Whether a small business is looking to expand their local footprint, or a large business is hoping to grow their market share, outsourcing workforce management solutions can help businesses reach their goals. By providing more money, more resources, better data and allowing them to offer better benefits, businesses can strengthen that fourth pillar and scale at the right rate. With the right staff, the right processes, the right data and enough resources, businesses greatly increase their chances of success as they grow into the future.
Originally published on business.wikinut.com, July 11, 2017.