In the UK in the past few years, Real Time Information has been introduced, auto-enrolment has been rolled out, the national living wage was introduced, digital tax accounts are on sight, and benefits in kind are payrolled. A lot of things are going on and on.
And it’s very easy to lose track of your core duties when you are constantly busy with day-to-day employment-related burdens.
Monitoring the ever-changing employment legislation and regulations, payroll calculation thresholds, pensions reform and benefits offerings, is quite a challenge! At any point in time, you may also be at risk and prone to being fined for non-compliance.
It has never been more important for companies to understand the total cost of ownership of their HR processing.
Identify the “hidden” costs, in addition to the more obvious costs. It can help HR build a business case for new ways of working and realise hard, soft and regulatory savings, while improving productivity and employee engagement.
- Hard savings. Actual financial gains realized by cost reductions and/or increased revenue. Some examples are cost savings due to reduction in software / training costs and maintenance, reduction in workforce employment costs, elimination of hardware capital expenditure.
- Soft savings. Financial gains realized by improvements in operational efficiency. Examples include accomplishing tasks in less time, increased accuracy in data management and presentation, and increased adoption of better benefits and best retirement pack.
- Regulatory savings. The work to be completed to meet compliance with laws or policies.
Decreased costs / Realised savings / Reduced headcount
- System Installation & Upgrading & IT Maintenance costs
The initial costs of acquiring and implementing payroll, and HR administration, or health and benefits systems. The costs of upgrading systems to the latest versions. IT systems need infrastructure, support, software, and maintenance.
• Indirect Labor hidden costs
Indirect labor costs relate to people working outside HR who help deliver HR processes. They include employees who answer employees’ questions about pay and benefits.
- Training costs
The cost of training employees to use HR systems adds to overall costs, especially when employees need to be re-trained to comply with updates in regulations and to use upgraded or replacement systems.
- Direct non-Labor costs
The total costs of operating payroll and other HR processes may include fees paid to HR consultants, as well as rent and building maintenance.
- Quality-Related Costs
Perhaps the hardest costs to detect are those linked to the quality, or lack
of quality. Choosing the wrong solution is sometimes the biggest hidden cost of all, as it can disrupt operations with a significant impact on the company’s
- Data Consolidation Costs
Companies lacking a single database, have to pull all their data together, and consolidating data is time-consuming and represents another cost element.
What are forward thinking companies doing differently
In this playing field, forward thinking companies are looking for smart solutions beyond the boundaries of the short term benefits and cost savings potential of shared services.
They see their processes as an opportunity for high grade benefits. Such as enhanced financial performance and cashflow, greater market share and offering better service to their customers.
Forward-thinking, employee-focused companies, that view employees as an asset, are redefining what is core to their businesses, and increasingly opt for co-employment.
Co-employment is a smart solution that helps streamline business processes and strengthen your company by delivering more profitable business outcomes.
Co-employment offers the right balance to cost savings and business benefits.
A combination of expertise, processes and technology infrastructure. Always up to date with legislation and benchmarked for continuous improvement and exceptional levels of client satisfaction.
Generates significant economies of scale that enable service provision at significantly lower costs, and enhanced levels of quality.
The co-employment management company see and treat your employees as their employees. Takes care of your workforce to build a more dynamic, productive workplace.