Financial ramifications are not always on the forefront when it comes to HR decisions, but increasingly HR is realizing prominence at the decision table is enhanced when financial implications are fully taken into account. The tools that are now available can seamlessly model the financial impact of decisions while key HR issues are addressed. Ideas and actions can be supported with smart visualizations that communicate the operational cost associated with the measures proposed. Being able to deliver analysis and metrics that the business is familiar with can greatly increase the likelihood of adoption.
When HR makes resource decisions the total cost or return is typically not determined until sometime in the future. The up front on-boarding, training, development, real estate, and technical cost is substantial and determining the likelihood of return on these investments is crucial. Having insight into why people stay and also why they leave can support better overall resource decisions. The operational and strategic drivers can vary greatly and knowing which actions to take both globally and at the entity level provides tremendous advantage.
Take overtime for instance. Why would any company want to pay overtime when they could just hire additional employees and pay the base wage? In order to make this determination it is essential to know the total cost of bringing on new hires vs. the cost of paying overtime. Is the driver of overtime a constant or does it fluctuate with demand? Being able to make various comparisons and provide answers to key questions ensures HR a permanent seat at the decision table.
With new advances in workforce planning and analytics technology HR executives have the ability to not only explore but also have a data-driven framework to explain actions. HR reporting and analytics can guide smarter decisions about which projects to take on and whether or not overall business objectives are realistic. HR working in tandem with Finance makes for a much healthier organization overall and the increased efficiencies allow companies to be more nimble and responsive yielding a real competitive edge.
Vemo offers enterprise Cloud-Based Workforce Planning and Analytics technology. Contact us to set up an online demo or request more information.
Email: email@example.com Follow us on Twitter: @vemosocial