HR Automation – Is It Really Needed?

Do I need to Automate? Is this the right time to Automate? Is it really worth it? What type of Solution do I need? Should I outsource instead?

These are some of the common questions that come up for companies who are either running their HR and Payroll through Excel or some basic legacy systems. These are all valid questions and their answers also vary from company to company. We did a thorough research and surveyed several organizations across different locations and business segments to come up with some industry pattern.

Following are the key factors that indicate whether it is appropriate for companies to automate their HR process or continue using manual/basic systems

Employee Count: Companies with up to 50 employees typically find it easy to manage manually. Post employee count of 250 automation starts becoming a necessity and managing employees over 500 manually or through a basic system becomes unmanageable and going for a reliable and robust solution offers an instant ROI

Location Spread: Next major concern for companies is managing multiple locations. Companies having multiple branches (typically in excess of 5 locations) find it difficult to manage without a web or mobile enabled system. Main concern for such companies is attendance automation. Companies with locations across multiple states typically prefer outsourcing their payroll while keeping their remaining HR process automated.

Age: Startups prefer to keep their processes flexible and find it easier to manage their process manually. If their employee count increase quickly they prefer outsourcing their payroll and compliance and keep managing the remaining processes either manually or through some sort of basic/in house system. Once the companies stabilise and have set HR processes (typically post 4-5 years of operations) do the companies start evaluating systems for HR automation. Managing companies after a 10 years of operations manually is not recommended and often has a high risk of non-compliance if using manual or basic system.

Profitability: The sooner the companies become profitable they start working on stabilising their process and start looking to automate.

Industry: Companies in Service Industry typically prefer to outsource their payroll while focus on automating rest of their HR functions. Manufacturing sector by large prefer to keep their payroll in house and attendance automation is their key focus after compliance.  Real estate, ecommerce or sales driven companies typically want their Core HR and attendance automated at the earliest.

Management Experience: Second generation or young entrepreneurs prefer to automate over first generation experienced counterparts.

 

Factors that matter while selecting HR partner

Cost: This is one of biggest factor while selecting HR solution. Most companies have accepted that they end up going for the lowest cost option though regretted it later but found it easier to switch from manual to low cost basic solutions

Experience: Another factor that matters is the experience of the HR partner. Companies prefer to stay with the experienced service providers over startups.

Focus: Companies that focus on only on HR solution is largely preferred over companies that have multiple products as the management bandwidth is typically more focused if a company has one brand/solution rather than doing multiple things

Reliability: A robust, time tested and reliable system is preferred over new and unstable systems

 

About Mentis

Founded in 2007, Mentis is a leading HR and Payroll provider. Mentis has over 10+ years of rich experience providing products and services in HR domain. Following are the main reasons why companies prefer Mentis:

  • Reliability: Mentis is highly reliable as it is a robust system which has gone through years of stabilisation
  • Strong Partner network: With a strong partner network, Mentis is capable of providing additional solutions ranging from Biometric services to Payroll and Compliance outsourcing services.
  •  Cost: Mentis has one of the best cost to feature ratio in the industry
  • Feature Rich: Mentis is feature rich HRMS. It covers all the HR processes from Employee Hiring to Exit. Modules range from attendance, leave, manufacturing, performance, feedback, training, learning, travel, recruitment, payroll, TDS, compliance, surveys, letter generation, promotion, transfers, connect, intranet and mobile apps
  • Flexibility: Mentis is available both on cloud and on-premises. Our on-cloud has the highest level of customization capability in the industry

 

Skill Development using Mentis

Simplify Hiring Though Automation

Hiring is one of the most crucial responsibilities of HR Department. Growth and stability of the business is dependent on the efficiency of the HR to hire resources as per the business needs. While it is crucial to get resource as per the time and budget contraints, it is even more important to make sure you get the right candidate. Candidates that have earlier shown tendencies of pulling out at the last moment, inconsistent or with questionable backgrounds need to be filtered.
With highest attrition in the recruitment department, the previous experience often gets misplaced. Having a system to keep a record of candidates and their feedback is a valuable piece of information for any company.
It is therefore worth investing in a good recruitment solution. Mentis HRMS has a smart yet simple recruitment solution that can help you onboard quickly. You can maintain candidate history, database, schedule and track interviews, roll out offers, and manage replacements easily.
To know how Mentis can help simplify your recruitment, contact us by visiting our website http://www.mentishrms.com or email us at sales@bennett.in

Utilizing HRIS to Impress your CEO

Most of the companies dealing with large manpower have some sort of HR systems in place. From excel based solution to medium to large size solutions like Mentis or Global Enterprise level implementations of PeopleSoft, the HR is managing their transactions in one way or the other. While HRIS records plenty of different types of transactions correlating those in a smart manner can help HR provide useful inputs to their Management.

For example, HR has the transactions of employees’ attendance, leaves, their last few cycles of performance feedback, attrition rate, reasons of exit, their competencies (gaps if any) and their feedback from their managers & peers. These transactions can easily be generated using any decent industry standard HRIS like Mentis. Once you correlate the data you can make interesting interpretations related to:

Financial Loss due to late coming: Use the salaries of the employees and factor in the number of times the employees are late/or on leave in a month to come up with loss of salary per month. Let us call this as Monthly Time Loss (MTL).

Using the data above you can easily compute the following trends for Amount & percentage over the past 12 to 24 months:

  • MTL by Employee
  • Average MTL
  • Grade wise MTL
  • Total MTL

 

Now pick employees that have the highest (above average) MTL in terms of Amount and in terms of Percentage loss and then look at their attrition rate and see if there is any co-relation. Another co-relation could be comparing the performance of employees with high MTL.

All these data points can be combined to create a historic trend that can be further used for predicting future trends.

Demonetization & Donald Trump Election Impact On HR Industry

Demonitization

Look at the current state of demonetization, if there was a way to predict this, wouldn’t it be a great opportunity for many of us. Some might have read the signals, observed government’s actions (arrival of new governor, launch of new currency, upcoming elections, GST) and pressure of taking action against black money, expiry of the latest tax amnesty scheme and the state of banking system. These indicators were sufficient to give a prediction that something of this sort is a concrete possibility.

Donald Trump & the rise of Right Wing

In the time of uncertainty with change of guard at the best democracy of the world and the unpredictable nature of the new leadership, some way to predict how it might impact our industry would be really useful. Mexico is already in panic state, Japan/China are being cautious and Europe wary of what might happen next. Rise of the Right wing across the world might bring additional dynamics (both politically and economically) for companies to handle.

Current Role of HR Department

In such unpredictable Macro environment, companies need to find a way to prepare how it might impact them. While they cannot control the macro environment, they can certainly become more innovative in the way they handle their resources. Human Resource management has been a traditionally transactional activity as it managing and monitoring the transactions as per the basic framework of the company.  Most companies look towards HR for policy enforcement, discipline, worker relationship, salary cost analysis, performance measurement, compliance & employee engagement etc. While this is how HR department has been tuned into and hence how they perform. Most of the traditional work performed include talent acquisition, competency assessment and development, compensation planning, salary processing, employee engagement, training, performance evaluation, joining & exit paperwork/formalities.

How HR can Help

HR has much more potential than it is currently being given credit for by the companies. HR has the ability, experience, insights & data to give predictive analysis. Using the right tools & with help of proper data HR can help predict a potential problem or an opportunity before it becomes a reality. Once an incident has transpired there is nothing much anyone can do but to react as per their abilities. HR can unleash the power of information related to the company, competitors & the industry and predict a threat or an opportunity.

For instance, a simple comparison of employee salaries in comparison to their counterpart in the industry, combined with the competencies, their recent performance trends & their punctuality it is possible to identify leaders that are flight risks and bad hires that are burden to the balance sheet. One right proactive move to promote a potential leader or fire a bad hire can help a company capitalize on an opportunity, prepare for risk of manpower loss or even help improve the bottom line by weeding out the unwanted team members.

Mentis HRMS is currently working on such an analytical tool that will help companies mine their information warehouse and make predictive analysis based decision making. Mentis has tied up with Complicheck System (Compliance Software to identify and track compliance) to help HR department a single platform for managing transactions and related compliance. CompliCheck has a builtin repository of labour law compliance, TDS, Companies Act & upcoming GST in one single platform.

 

HRIS on Cloud – Fear of Unknown

While procuring HRIS (or any other ERP for that matter), the most critical decision is often taken in the end or in many places completely ignored. The decision related to whether to opt for a Cloud based solution or to go in for an install based solution.  Lack of information, misinformation, fear of unknown and perception of higher costs often clouds the decision making abilities. Let us take a quick peek at the reasons why people opt for on premises solutions

1) Fear of Data Security: This is the biggest concern that most of the customers have when deciding cloud v/s on premises solution. The reality is that most of the cloud vendors have stringent data privacy and secrecy procedures in place and most these are more stringent that the customers can themselves implement. Yet this fear drives the decision to stay on premises.

2) Higher Cost: This again is a myth as there are so many factors that add up to the cost of owning a software on client’s premises that are usually ignored while computing. Typically a software (installed or on cloud) should be considered for a 5 year basis while computing the cost as the infrastructure supporting the on premises application require upgrades, application itself would require major upgrades and hence investment would repeat after 5 years. Companies keep in mind much longer time frame while computing the cost of owning a software hence create an assumption that on premise solutions are cheaper. Hidden/intangible costs related to the maintenance, high availability & business continuity is often under estimated while computing the cost of installation based software. In reality you end up getting a very high quality infrastructure and supported services at a very reasonable cost.

3) Customization and Integration: Customers believe that it is not possible to customize cloud solution beyond a certain point. In reality this depends on what kind of HRIS solution you are looking for. There are different kinds of Cloud solutions (multi tenant, a bit expense but can be highly customizable or single tenant, based on best practices that has some limitations on what can be customized but offers alternative solutions at much lower prices). Integration is never a challenge for a Cloud solution as the SOA (service oriented Architecture) web services are very common making the communication across the various platform very easy.

4) Limited Options: Customers feel that there are very few options when it comes to on premises. While this might be true to a certain extent but would it be wise to opt for a solution that is not ready to scale itself on the next generation platforms. Most of the industry renowned solutions have already switched to Cloud or are in the process of switching to Cloud. Vendors who are unable to move to cloud might not be able to survive in long run or find themselves struggling once the cloud platform picks the pace. So it would be really wise to stick to the vendors that have already adapted to the next generation technologies.

To know more about how Cloud based HRIS like Mentis can help you with your automation, visit us at http://www.mentishrms.com

 

 

 

Advanced Assessment Module

Mentis now has an advanced assessment module with ability to create tests and questions. The test platform can be used for a wide range of assessments. Some of the key benefits/usage of the test platform include:

1) Training Effectiveness Analysis: The test platform can be used to get assessment of the training participants before and after a training. The difference in scores can then be used to analyse the improvements of the skills that the training addresses
2) Training Feedback: The platform can be used for capturing the feedback of the participants
3) Manager Training Feedback: Feedback from the manager on the training objectives can also be captured using the platform
4) Interview Selection using online test
5) 360 Degree feedback
6) Survey and Opinion
7) Skill and Competency assessment
8) Exit Interview

To know more about how Mentis can help improve the HR automation in your organization contact us for a Demo

Transitioning to Transformational HR

Often the HR departments are stuck performing the routine or transactional activities like:

  • Managing Employee Records
  • Maintaining Employee Transactions (Leave, Attendance, absence etc.)
  • Payroll Processing and Statutory Compliances
  • Preparing reports/monthly MIS for management
  • Hiring, Onboarding and Exit formalities

While some of these activities can easily be outsourced others can be automated. Once the focus of the HR department shifts from these routine work they can start contributing towards organizational building. HR can help an organization transform using its expertise in handling human capital effectively.  HR can help perform some of the crucial functions that are typically left unaddressed due to these routine tasks. To list some of the transformational functions:

  • Policy Review: Organizations formulate policies based on their external and internal environment. These need to reviewed more regularly to keep pace with the changing business environment
  • Effective Performance Review to help identify and reward/retain the key performers
  • Maintain skill repository and ensure talent development and retention is at par with the business requirement
  • Succession Planning of key positions to help strengthen business continuity
  • Effective employee engagement for higher job satisfaction and retention

To succeed in the goal of having a transformational HR it very crucial to have an effective HRIS in place. By automating the routine transaction and further building a platform to enable the transformational activities, an HR department can effectively transform into a business enabler.

Use Mentis HRIS to automate your current HR process and paving way to enablement of your HR department.

 

 

 

BYOD – HR Policy

Bring your own device (BYOD)—also called bring your own technology (BYOT), bring your own phone (BYOP), and bring your own PC (BYOPC)—refers to the policy of permitting employees to bring personally owned mobile devices (laptops, tablets, and smart phones) to their workplace, and to use those devices to access privileged company information and applications.

Since Businesses are unable to stop employees from bring their personal devices at work, clubbed with the growing opinion that it improves employees productivity, HR is gearing up to a BYOD policy. Since this impacts IT there needs to be coordination between the two departments as both departments have their concerns related to this.

Benefits of BYOD:

  • Lower up-front costs when bringing a new employee on board.
  • Better technology, faster
  • Satisfied employees
  • Less training time
  • Fewer gadgets to carry around
  • No learning curve

Cons of BYOD:

  • Increased complexity in terms of infrastructure
  • Device as a distraction
  • Higher Security Risk
  • Risk of loss of personal data or even of the device itself

Given the benefits of BYOD and the growing popularity, HR Department needs to prepare the organization so as to handle the challenge more effectively.

 

Types of Performance Appraisal Methods

A variety of appraisal methods are readily available today to measure performance quality and quantity. Each appraisal method is plausible or effective in gauging employee productivity as engaged by different organizations. Hence, each performance appraisal tool or technique should not be dismissed hastily or rashly accepted unless the it fits the exact needs of the company with benefits to the employees.

Performance appraisal systems are usually categorized into:

  • Past oriented methods, and
  • Future oriented methods

 

Past Oriented Methods

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Improving Appraisal Process

Performance Appraisal continues to be a perennial irritant to many organization across the industry. Core problem stems from the subjective nature of the process.
Typically these systems are used to measure the contribution towards the functions that cannot be directly or easily assessed. For instance, we would not feel the need to merit Rate an Employee if all we expected from employees was to link their incentives only to the number of units produced or sold. But rarely as an organization we settle for this. Our expectations from our employees include additional contributions including ability to induct and train employees, being a team player, their knowledge and problem solving abilities, their attitude, behavior and values.

There are well documented guidelines that can help design a more effective appraisal system.

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