How to increase efficiency in your HR department

Every organization is trying to strike a difficult balance. While managing growth, complexity, and competition from a variety of vendors, they are also trying to develop the infrastructure to create and manage sustainable growth within their own organization. That’s why an efficient HR department is so crucial for every business.

Reduce administration through increased automation

Efficiency can mean many things depending on your organization, but it always includes simplifying complexities to reach the best outcomes in a timely and resourceful way. Luckily, technology has grown with businesses to help meet their goals and to inform day-to-day decisions and streamline processes. The best way to take advantage of new technology is by automating as many basic functions as possible within your organization.

Don’t be afraid to rely on new technology to handle administrative tasks like time tracking, payroll, and onboarding. Without an enterprise strategy for the HR technology stack, organizations are finding that they not only spend more on total HR technology expenditures per employee, but they also reduce the number of employees they can serve per resource.1

Check out our free guide on the future of HRMS and automation for a full view on what technology awaits HR in 2019

Rates for these kinds of automations are growing increasingly more affordable, making it more accessible for businesses of every size. Organizations with higher HR technology adoption saw almost double the revenue per employee business outcomes, and are more likely to be viewed as a strategic partner by their business leaders.1 This is why organizations are rethinking their approach to HR system selections, implementations, and maintenance in a world of constant digital change and evolution.

Use of analytics to measure performance

HR analytics aim to provide insight into processes by gathering data and then using it to make relevant decisions about how to improve processes. By using this data correctly, HR can properly interpret outcomes and spot trends companywide.

In the Big Data era, organizations are leveraging visualization tools now more than ever to provide insights for effectively managing employees so business goals can be reached quickly and efficiently. Therefore, the challenge of HR analytics is to identify data to be captured and then leveraging it to model and predict capabilities – helping organizations get an optimal return on investment on their HRMS in real time.

We must remember that usefulness of analytics is not measured by size or scope, but by the impact the results have on decisions. Analytics were created to increase organizational effectiveness, so if you’re not creating reports or your reports are not being used to drive your company’s decision-making – it will actually increase costs for your company.

Identify the right deployment options

Historically, technology was viewed as a capital investment that would increase efficiencies and reduce total HR costs over time.1 But as HRMS systems age, increased technical support is required causing an undue administrative burden for users and resulting in a system producing diminishing returns.

There is a right or wrong deployment option. Typically, it comes down to cost, security, and long-term value propositions when choosing cloud, on-premise, or hybrid deployment options. Each organization must make these deployment decisions based on their own unique needs and internal requirements.

Managing the deployment of software applications and services is no simple task as you must take into account a lot of information, people, and circumstances. The deployment decisions you make must drive efficiency today and in the future. That’s why many organizations use multiple providers, applications, and technology deployment types tailored to meet their HRMS needs.

When your HR strategy prioritizes usability, efficiency follows.

Efficiency and effectiveness are required of an HR department in order to consistently provide value to their organization. Improving efficiency is an ongoing process, but starts with a solid HR technology strategy. When your strategy prioritizes usability, efficiency follows, enabling you to continue to see efficiency gains for years to come!

Sierra-Cedar 2017-2018 HR Systems Survey

This is a guest blog written by PDS, you can view more of their articles by visiting the PDS blog

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Patricia Palmer

About the author…

Patricia (or Pat, for short) has been an integral part of PDS since joining the firm in 1984. Her experience and skills encompass a wide range including development, consulting services, sales and marketing. During her tenure, Pat has been part of the PDS senior management team for more than 25 years.

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Patricia Palmer

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