New technologies behind Total Reward Statements present opportunities to streamline HR processes and revolutionise a company’s approach to employee benefits says Chris Murray.
For finance directors, it can be difficult to view HR departments as anything other than an expense – but it doesn’t have to be that way.
Total Reward Statements (TRS) are an increasingly popular way of crystallising the employment costs of individuals – whether cash, benefits in kind, pensions or even training – and allow employees to be presented with a breakdown of the cost of their benefits.
This information can improve employees’ perceptions of their package and of their employer. This may be a worthwhile end in itself – after all, a happy employee is more likely to stay with a company – but the IT solutions used to produce TRS present wider opportunities for companies. One of these is to actively manage employee absence.
Make lost days pay
For many businesses, the cost of lost days through absenteeism can be alarming. Yet detailed analysis can pay dividends in this area, and means that HR teams can really contribute to the bottom line.
Companies which introduce absence management systems see worthwhile cost savings. They can identify causes of absence, monitor sickness trends and develop strategies to manage the situation.
This kind of system is only the beginning. To give employees a degree of choice over their benefits, the same TRS data can be used to implement flexible benefits programmes.
With a link to the payroll, salary-related benefits can be calculated by reference to current salary. This can facilitate salary sacrifice arrangements, which allow both employee and employer to gain through substantial savings in National Insurance contributions.
Streamlined systems
Many SMEs don’t operate a single electronic system for HR, payroll, pension records, and absence records. However, it’s now possible to install a modular package that can fulfil some or all of these functions, which can interface with or fully replace existing systems. System security is ensured with the same standard of data encryption used by online banks.
In a networked environment, many services can be incorporated, such as holiday entitlement, discount clubs, financial information and links to key sites. Services can be designed to tie in with the company brand and link with (or even become) an intranet.
A well designed and communicated interface between you and your employees can revolutionise the way that information flows through your company. Ultimately, this can become a suite of benefits and services to enhance your reputation amongst your employees, and also amongst those who aspire to join a company that understands its peoples’ needs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
