Strategic Human Resource Management

by Lily Jane Horn HR Specialist and Blogger

In this day and age, it is very rare to come across a computer-free workplace, whether it’s POS systems or office based workstations, the fact is that they enable strategic HR management. The efficiencies and reduced inaccuracies afforded by computer based technologies are integral to any business, regardless of size and turnover. At the end of the day, businesses are concerned with profit margins, of which wages to sales figures influence greatly. There are a lot of products on the market to assist in collecting, tracking and measuring this data. The data also provides a means to track and access figures from a strategic human resource management perspective, for example, retention, workplace safety and intellectual property.

Payroll processing is the time consuming task that all small to medium business owners look forward to on a weekly, fortnightly or monthly basis (note sarcasm). This process also ranges from a full hard-copy, hard-cash activity to a completely outsourced solution. Getting the payroll process right has significant flow-on effects, as staff quickly become unhappy when this process falls down.

Take for example the business that rosters their employees in excel and posts this up in the workplace, with any inevitable changes pencilled in manually. The staff then work according to the scribbled upon roster, with the shift-supervisor recording late arrivals, early departures and breaks, either as they happen or retrospectively, relying on their memory on the day payroll is being processed. Finally, all the data is interpreted from the rushed scribbles on the tattered roster, entered into MYOB and net wage figures are spat out for the business owner to withdraw from the bank and physically hand to staff or store in the safe until the staff member is next rostered for work. Sure, this is an extreme example, but for some, not far from the truth. Without having to point out in detail, there are some obvious restrictions in this process, which include accuracy of information, ability to report on wages data, time required to complete the process, staff morale affected by inevitable mistakes and additional stress.

Now let’s look at the other end of the spectrum where a roster is created via a tailor made web based time and attendance system with strategic human resource management in mind, accessible to all employees and each employee is required to clock in and out via a thumb-scanner, recording their working hours to the minute and comparing real times against rostered times. At the end of the pay period the times are reviewed, approved and processed by an outsourced payroll provider. Whilst this process maximises the accuracy and efficiency of the payroll process, allows for reporting and manipulating wage data, there are costs incurred for the customisation of the system, licence user and user fees and processing fees charged by the payroll processing company. The advantages are obvious, as the time required of the business owner and staff is minimal in this process, relying on technology reduces human error and most technology companies aim to improve their product to remain competitive.

Most businesses needs and budgets will slot somewhere in this scale and it is in applying a thorough analysis to find a solution that will provide the best results. Some business owners will forego expenditure in lieu of performing the task themselves, but there does become a point where you can put a dollar value on your time, and the more time you spend on repetitive and inefficient tasks with excessively complicated excel spread-sheets is less time spent on the success of the business.

When exploring the introduction of new technologies to enable strategic human resource management, ensure that a demonstration of the product is provided and that it is going to work under your business model and not the other way around. Once a decision has been reached, implementation is the next hurdle to overcome as change is rarely received positively and without criticism. Make sure there is an overlap stage, where initially the old system runs concurrently with the new technology as this will give you a direct comparison of the value and suitability of the system. The final step is “selling” it to the staff who will be affected, by highlighting the positives, providing training and being open about the reasons for the decision, inviting both positive and negative feedback.