Pain Points of Human Resources Your Business Needs to Be Aware Of
The human resources department plays a vital role in every organization. They have a lot of responsibilities such as finding and recruiting new applicants, creating training plans, ensuring good employee relations, and many more. HR also does tedious tasks such as employee benefits, payroll and compensation, and terminations.
Carrying these workloads, of course, gives HR pain points. It could affect the HR functions and degrade overall organizational performance if not addressed.
Let’s explore the pain points of human resources and discuss the possible solutions. Learn how a Human Resources Information System (HRIS) can eliminate these obstructions.
Top 5 HR Pain Points Your Business Need to Know
Here are the common pain points that your HR may already have encountered in their day-to-day work.
Time-consuming Administrative Tasks
Number one on our list is paperwork and administrative tasks. Did you know that manual data entry and updating employee information consume much HR time? Yes, it also causes headaches, and as the business grows, it becomes mundane. Additionally, doing administrative tasks manually and unfolding employee files paper by paper is tiring and stressful, and can lead to reduced productivity.
Instead of focusing on essential tasks like employee relations, these administrative tasks eat up HR's precious time.
Poor Data and Document Management
As more employees come into a company, more paper documents pile up. Employee documents such as resumes, birth certificates, clearances, SSS/HDMF/Philhealth forms, and school records could easily take up a lot of space and become messy over time.
Furthermore, it becomes time-consuming for HR to search and retrieve files if these files are not managed and stored correctly.
In our modern era, physically storing files is such an inconvenience and it is more prone to misplacement or document loss. Lack of document centralization often leads to poor accessibility, thus reducing the efficiency of HR in locating needed documents.
Payroll Management
In payroll management, there are also some pain points to be unveiled. One of these is using old-fashioned spreadsheets to process and compute pay. There’s nothing wrong with using Excel or Google Sheets in computing pay.
However, with the growing number of employees, it becomes more difficult to handle, even basic payroll tasks. With additions of attendance deductions, different pay scales, and other variables that affect employee salary, manual payroll becomes a nightmare for HR professionals!
Processing Employee Benefits
In relation to payroll management is processing employee benefits. Human resources consume a lot of time in finalizing employee benefits such as leaves, and contributions. One mistake could lead to employee dissatisfaction. Another costly consequence is overpaying or underpaying. It would be a massive pain point not only for HR, but also for employees, and employers.
Human resources should focus on improving the overall employee experience, but instead, their time is wasted on fixing mistakes and errors in employee benefits.
Limited System Integrations
Another common pain point of the HR dept is the challenge of limited system integrations. Most companies have separated and disconnected software for HRIS, payroll, and ERP, creating isolated islands for the data. This hinders the flow of information, thus decreasing operational efficiency.
The data fragmentation creates inaccessibility to employee and organization information. It could obstruct effective decision-making. Disparity in workflow also creates redundant tasks that can easily plague any HR professionals, leading to errors and wasted time.
Not only the HR department, navigating a disjointed system makes employees suffer too and impacts their overall experience.
Dealing with Pain Points of Human Resources
Now that you know the most common pain points of HR departments, you may notice that most of them came from the manual and old-school methods of the HR processes. Tasks such as manual sorting of paper documents, manual payroll computation, and manual processing of employee information are the most common culprits.
These pain points can be relieved by just a simple solution. Using dedicated software that handles repetitive tasks can provide ease to HR professionals.
Software such as a document management system could provide ease in time-consuming paperwork. The speed of searching in digital documents is a lot faster than physical papers. Additionally, adding and sorting new documents into the correct folders is also a lot easier in such systems.
A good HRIS and payroll system can help in terms of payroll and benefits management pain points. A great payroll system automatically computes and uses correct numbers to accurately calculate pay for each employee. It can handle tasks such as leave management, and scheduling salary payouts. Delays and hassles will be avoided, thus easing these pain points. With the correct HRIS software setup, the HR team can just focus more on important tasks, like creating activities to enhance employee engagement and ensuring employees’ great experience.
Dealing with limited system integration can be solved by using interconnected software. Centralized data management provides different business functions with a single view of what is happening. Additionally, it provides an organized way to collaborate with different departments, thus improving overall efficiency. An interconnected and unified system helps the HR department have easy access to different data and create better decisions.
Eliminate the Challenges of Your HR team with SATO Den
Improving the human resource processes creates a win-win situation for HR, employees, and the organization. Ensuring processes flow smoothly can enhance overall productivity, and give employee satisfaction.
By having SATO Den software, we guarantee that our unified software will transform your HR efficiency. Contact us now to learn more.