Position Control best practices include leveraging this valuable tool in innovative ways. While workforce management systems are often considered an HR responsibility, Finance executives can use Position Control to do everything from tracking labor costs by program to completing more accurate budget forecasts. With labors costs making up the largest expense for most organizations, being able to track and budget effectively are essential – especially for Health and Human Services organizations that don’t have extra dollars to spare.
Position Control vs. Employee-Based Systems
Many organizations use an employee-based system, which is problematic for Finance because of the fluidity of the workforce. Employees come and go, change positions, or split their time between different responsibilities, which can make it challenging to track the budget at any given moment, let alone forecast for the future. Using Position Control is a best practice for Finance, as it enables you to budget by position regardless of whether the position is filled, open, or split between different employees.
Real-Time Tracking for Better Budgeting
Position Control enables you to easily compare budgeted versus actual costs side by side whenever you need to. The reporting capabilities of position-based software allows you to get the information you need when you need it. Additionally, because specific characteristics like program, department, job code, and funding source are tied to the position itself, you can track labor costs by any of these features individually. This can be invaluable for nonprofits that need to report back to funders or board members regarding labor cost allocations.
The visibility that Position Control provides also helps prevent the all-too-common issue of over-hiring. In a Position Control system, open positions must be approved before they can be filled. And Finance can make sure that filling that position will stay within budget. Using daily lost revenue reports, you can also identify which vacant positions should be prioritized in recruiting efforts.
Position Control for Better Budget & People Management
When you’re able to create a budget and forecast effectively, the organization can run as efficiently as possible and your entire workforce can make an impact on the people and communities you serve. Beyond budgeting, Position Control also has many applications and benefits for others, including HR executives and CEOs, that together help your organization achieve its mission.