Articles by: Ally Edwards

Best-In-Class Payroll Practices

Payroll isn’t just paying your employees for their hard hours worked; it’s much more than that. Payroll practices include hiring and firing, salaries, absence management, benefits, bonuses, and more. Along with all of these areas, payroll is also directly associated with Tax & Accounting, where a variety of laws come into play. Between regular tax law, overtime laws, and filing requirements, it can easily become a full-time job to ensure that your payroll is compliant.

With an HCM system, the full-time job of managing compliance and staying up-to-date with the ever-changing laws and regulations becomes obsolete. HR and Payroll software allows you to manage all aspects of your workforce, including payroll, by automatically abiding by laws and regulations, calculating overtime, and distinguishing between various job codes. Here are a few ways that a fully unified solution can keep your payroll compliant:

  1. Filling Out Appropriate Forms- On an employee’s first day, they will be given a pre-filled W-4 to complete which will include all of the information needed for tax purposes. This document can then be stored electronically and will flow seamlessly to all parts of the system.
  2. Benefits Elections- Using an online portal, employees can elect benefits, declare marital status, add or edit dependents, and view a summary of benefits including employee and employer costs. Once completed, this information can then be accessed in Employee Self-Service, Benefits Administration, Payroll, and more.
  3. Automatic Tax Updates- State, tax, and other legislative changes are automatically updated within the system to ensure that your employees are always compliant.
  4. Calculations- A unified HCM system will calculate payroll each time it is processed, seamlessly taking into account information from all parts of the system. If employees are working in multiple job codes, change positions, or qualify for overtime pay, their pay will automatically and accurately be calculated to the correct amount every time.
  5. Self-Service- If an employee happens to have a change in personal information, it no longer requires the HR department to make those changes. Instead, employees are encouraged to change their own information so that it is always up-to-date.
  6. Payroll Previews- With payroll previews, you are able view information and double check that all data is accurate before processing payroll. This increases efficiency and drastically reduces errors.

Wage and hour violations currently outpace all other forms of litigation. In fact, since 2007, the DOL has conducted over 150,000 wage and hour investigations that have resulted in findings of 110,000 violations. Another DOL study also found that that 10-30% of employers audited by states misclassified their employees. With so much revenue at stake, it comes as no surprise that authorities are beginning to crack down on non-compliant organizations.

Hefty financial penalties and harsh consequences are forcing employers to become informed about the infinite laws surrounding hour and labor wages. It’s time to take precautionary measures to ensure that your payroll is compliant.

This DATIS Blog was written by Ally Edwards, DATIS, on February 17th, 2016 and may not be re-posted without permission.

Performance Management: An Ongoing Process

The practice of Performance Management is evolving to meet the needs of the modern workforce. Annual performance reviews have proven to be painful and ineffective to both the manager and the employee. However, Performance Management is still key to the growth and development of employees. In lieu of painful, yearly meetings, Performance Management is now transforming into a continuous feedback process.

Technology is driving the evolution of performance management. Through an HCM system, employees are able to set goals that align with the organization, and track them throughout the employee lifecycle. In addition, managers can view these goals, track the progress, and leave comments for the employee. This way, the employee receives consistent feedback and can work to improve in specific areas throughout the entire year.

By investing in Performance Management technology, you will see many changes in your organization such as:

  1. Higher Productivity- Since employees will be able to receive in-the-moment feedback regarding their latest projects, the employee can take that feedback and make immediate improvements to their performance. Employees will no longer have to wait an entire year to receive feedback regarding a project that was completed six months ago.
  2. Increased Employee Engagement- Managers will feel encouraged to act as more of a coach than a boss. In fact, organizations with excellent cultural support for coaching see a 13% increase in stronger business results and a 39% increase in stronger employee results. Ultimately, employee engagement will result in a higher retention rate, which will also cut overall costs.
  3. Goal Achievement- Managers and employees are able to sit down and set individual SMART goals on the first day. This encourages employees to set personal objectives that are aligned with the organization’s objectives. Setting goals drives an individual forward and gives them something to work toward. These goals will be consistently monitored throughout the system to ensure the employee is on the right track every step of the way.

All in all, by redefining Performance Management and designing it as an ongoing process, you will be able to save time, resources, and boost overall engagement throughout your organization. Employees will feel encouraged and motivated as managers coach and guide them through projects to reach their goals.

This DATIS Blog was written by Ally Edwards, DATIS, on March 23rd, 2016 and may not be re-posted without permission.

Adding Up the Benefits of HCM

Human Capital Management allows organizations to manage their workforce in a more effective and efficient manner. As the business environment becomes more and more complex, organizations are recognizing the positives that come with investing in an HCM system. However, many organizations are still reluctant to change their current systems and continue to manage their workforce through inefficient processes that require a significant amount of paperwork and time. The benefits of HCM outlined below, can help you realize that transitioning to new systems and processes can drive positive outcomes.

+ Eliminate Mundane Administrative Tasks

With an HCM system, your HR department will be able to streamline processes. For example, when onboarding employees, your HR department will no longer have to ask for documents from the candidate, review the candidate’s qualifications, or file the paperwork. Instead, a candidate will upload all of their documents to the cloud where managers can review, comment, and rate potential hires. This eliminates a significant amount of time spent on paperwork review and filling, so that the HR department can focus on making more strategic business decisions.

+ Reduce Paper

According to The Paperless Project, the average office worker uses 10,000 sheets of paper per year. In addition, every 12 seconds a document is lost and it takes about 18 minutes to search for that misfiled document. By utilizing an HCM system, you are able to go paperless by storing all of your files safely and securely in the cloud. You will never have to worry about storing or misplacing documents.

+ Increase Retention

The cost of replacing lost talent is 70 to 200 percent of that employee’s annual salary. Technology allows you to onboard new hires faster, and set and track employee goals to decrease their time to productivity. By retaining employees, your organization will cut costs, create a great work culture, and increase overall efficiencies.

+ Lower Labor Costs

It can be difficult to keep track of all the different salary grades at your organization. It can also be challenging to make sure that your organization never exceeds the staffing budget. By organizing your employees by position, you can ensure that an employee’s salary and employment status is in compliance with the budget and that every new employee is placed in an approved to fill position.

+ Decrease Compliance Risk

Between ACA reporting, Wage & Hour laws, and countless other regulations, it can become difficult to maintain compliance. Unfortunately, organizations that are still processing payroll manually increase the risk of  hefty penalties and fines if there are violations. Furthermore, in the Health and Human Services industry, it is critical that you are staffed with highly skilled professionals. These professionals must maintain up-to-date and valid credentials to ensure you are providing high quality care and avoiding funding clawback.

All in all, the many benefits that come from an HCM system add up to equal success. By implementing an HCM system, your organization will see a huge difference throughout the entire organization, as productivity and efficiency rise to new heights. After calculating all of the benefits, there is no doubt that you will find an HCM system to be the best solution.

This DATIS Blog was written by Ally Edwards, DATIS, on April 26th, 2016 and may not be re-posted without permission.

Are You Embracing the Full Potential of HRIS?

HRIS, or Human Resource Information System, is the merging of human resources and information technology through HR software. This type of software is changing the way that organizations operate by alleviating HR departments of mundane paper tasks, bringing on new employees in a more efficient manner, and drastically reducing time-to-fill. Overall, HRIS is increasing efficiency and productivity throughout entire organizations.

When it comes to selecting the right HRIS, there are a lot of things to take into consideration. It’s critical to evaluate and analyze different systems to ensure that your organization is investing in an HRIS that fits the specific and unique needs of your organization. By creating a list of needs, establishing a budget, and comparing options through online software demonstrations, you will be able to define the best HRIS software for your organization.

However, there are many organizations that have already implemented an HRIS that are still not taking full advantage of its capabilities. When you invest in an HRIS, it’s important to make sure that it comes with a strong support team that keeps you up-to-date with software enhancements and enables you to harness the full power of your HRIS. Use the chart below to find out if you are embracing the full potential of HRIS at your organization.

This DATIS Blog was written by Ally Edwards, DATIS, on February 1st, 2016 and may not be re-posted without permission.