CFOs Need To Know the Fallacies Behind "Business as Usual" in
relation to Human Resources Practices
What are your people worth?
"PEOPLE ARE OUR MOST IMPORTANT ASSET." How many times have you
heard that? More important, how many times upon hearing it have
you nodded politely and then changed the subject to something
more, ah, important? Human resources receives far more lip
service than respect, but economic factors factors are making HR
the subject of some truly substantive executive discussions-and
expenditures.
Human resources as a lowly cost center
The Human resource department is traditionally inundated with
excessive hard and soft costs. This single department is a
necessary evil. HR is not part of any company's core line of
business, which creates these hard and soft costs. These costs
revolve around management of documents for each employee. If the
career of an employee is broken up into 3 phases, HR's document
lifecycle looks like the following:
Pre-employment: 15 to 20 documents including - job description,
application, search agency contract, interview checklist
Employment: 14 to 18 one-time, and 3 to 5 annual documents
including - nondisclosure, non-compete, handbook acceptance,
performance reviews
Post-Employment: 3 to 6 documents including - termination,
COBRA election, exit interview.
The above documents, and many others travel extensively
throughout an organization during the career of a single
employee. A simple example is the interview process. A manger
generates a request to fill any open position on a preprinted
form. That request is manually distributed to upper management
for approval. Once approved, the request is manually distributed
to the HR department. As applicants submit resumes, qualified
prospects are manually distributed to managers for interviews.
Manual notes are taken and then the interview checklist is
manually distributed back to the HR department to repeat the
same process for as many interviews as it takes to fill the
position.
This repetitive back and forth flow of HR documents is only
interrupted by the monumental task of physically filling,
tracking, and securing these documents. Most companies will have
independent filing cabinets containing documents, such as
resumes, letters of recommendation, performance reviews, and
more, for each employee. Some organizations will have another
set of filing cabinets dedicated to medical benefit
documentation. Managing multiple sets of records requires
clerical support and administrative overhead.
The Human Resources Department is outmanned. Studies indicate
that there are 85 employees for every 1 Human Resources
representative. Every year these numbers become even more
lopsided by 3 to 5%. This coupled with the fact that every
employee has a permanent file containing between 32 to 44
documents, proves that Human Resources is drowning in paper.
Throwing HR a Lifesaver
Human Resources can be saved. Document Management solutions were
specifically designed to handle the overwhelming flow of paper.
HR documents no longer have to originate in a paper format. They
no longer have to be manually distributed back in forth through
the organization. They are free of being stored insecurely in
outdated filing cabinets.
Implementing a proven document management solution would
positively affect the following areas of an HR document
lifecycle:
Creation - Documents are created on web forms, not Paper.
Distribution - Documents are distributed electronically
via rules based routing, not manually.
Storage - Documents are securely stored electronically,
not on someone's desk or filing cabinet.
Retrieval - Documents are retrieved from a desktop with
the correct security clearance, not after a manual expedition to
records room.
Security and Compliance - Multiple levels of passwords
and rights restrictions secure documents, as well as automatic
audits trails, and not inaccurate fallible manual efforts.
Benefits of Automating the HR Process
Improved Management - All HR related information is
available on-line providing managers more information to base
their employee management decisions.
Increased HR Manager Productivity - Human Resource's
self-service capabilities reduce inquiries to HR from employees
and managers, freeing HR managers for other tasks.
Lower Administrative Costs - Document transportation
costs are eliminated, as are the cost of physical storage space:
office space, filing cabinets, offsite storage, microfiche
equipment, etc. Clerical time is no longer spent looking for
lost or misfiled documents.
Leverage Existing ERP Investments - HR managers, line
managers and employees continue to use their existing ERP
interface and tools, assuring rapid adoption of the optimized
processes and reduced training time.
Improved Control and Compliance - With the system's
workflow enforcing accountability and all actions automatically
recorded in an audit trail, compliance with corporate standards
and legal regulations is improved.
Enhanced Security - Human Resources restricts access to
personnel file information, enabling adherence to regulations
such as HIPAA and EEOC.
Smoother Audits - With all HR related documentation
available on-line from within the ERP system, internal and
external audits are completed in less time with fewer people
affected.
What Are You Waiting For?
As you can see, fallacies behind the phrase "business as usual"
are not immediately apparent. When companies take the time to
look for ways to improve business, these problems are
discovered, especially when it comes to Human Resources.
Managing documents will make your business run more
efficiently. Moving from a manual process to an electronic
process leads to a better managed, more profitable business.
What are you waiting for? Let us help you uncover your hidden
document costs.
What Next?
Cornerstone Communications has helped over 800 CFOs streamline
their document processes. We do not know your specific situation
or if we can help you. Contact us today to explore how document
management might affect your company's Human Resource process.
Call: 1.888.427.5663
Email: sales@cstoneindy.com
Visit: www.cstoneindy.com
Contact Us:
Cornerstone Communications
One College Park
8910 Purdue Road, Suite 750
Indianapolis, IN 46268 Toll free: 888/427-5663
Main: 317/802-0107
Fax: 317/802-0115
Website: www.cstoneindy.com
Email: sales@cstoneindy.com