The Benetech Advantage
It's lonely in HR. Never fear! Benetech's team of seasoned experts provides the wisdom, technology insights, and healthcare regulatory updates that keep under-staffed and over-tasked HR departments informed, in compliance, and running lean!
(2 minute read) Overtime reclassification is going to hit employers with some significant compliance costs in the first year. The DOL speculates that employers will spend $592.7 million to comply with the pending regulatory update. And that is before factoring administrative costs for managing overtime and tracking employee time.
When considering a new HRIS or Human Capital Management Software purchase, increasing numbers of employers are looking for integrated HR systems, automated processes, and intuitive report writing. Understandably so—most have built their HR administration software suite from various different providers with wonky integrations. If you want a truly integrated HR technology, you have to take system-architecture into consideration, and here’s why. WARNING: This is not a terribly exciting read, but if you are serious about finding a truly integrated workforce solution, this is must-have information.
We’ve been writing a lot about reducing overtime costs over the past few months. While it’s unrealistic to believe that overtime can be completely eradicated, with the application of Lean Thinking, employers can find some immediate overtime cost savings by changing a few environmental conditions. Let's see how applying some Lean HR thinking to overtime costs can help us deliberately forge environments that curb excessive overtime scheduling.
Nothing can kill a manufacturer's bottom line like increased labor costs and production loss. Weighing in at a hearty 6.3% of annual payroll, overtime is one of the heaviest controllable costs carried by manufacturers. Research shows that in an average week, manufacturers incur 4.3 hours of overtime. It adds up! Reducing overtime’s average percentage of payroll by 1% can translate into $50,000 savings for every 100 employees. In production, the pennies matter. For manufacturers looking to maintain competitive pricing in a marketplace that has a shrinking talent pool (baby-boomers are on their way out with a much smaller Millennial generation entering), reducing unnecessary and avoidable overtime is a must. So how are employer’s reducing overtime?
This past week I had the honor of representing Benetech at the CRHRA Conference at the Empire Plaza here in Albany NY. It was a great experience from the friendly attendees to the great speakers. However as an employee of Benetech I wasn’t there to listen to the speeches (even though I thoroughly enjoyed both), I was there to listen to the professionals who attended and came to me to learn more about Benetech’s offer. Even those people who just wanted to throw their card in the wine raffle were nice enough to entertain my questions. Here’s where I address the title From all the problems I heard from various Personnel managers one thing kept coming up, paperwork! *shiver* One of the biggest hurdles for HR professionals is the insurmountable piles of paper work needed to achieve the simplest of daily processes. As I spoke to these over tasked and under staffed professionals I couldn’t help but think of the benefits of a software solution, more importantly the employee self-service available.
A 2006 survey by IDC research reported that more than 80% of municipalities exceeded their annual overtime budget by an average of 20%. It’s been a decade, but I am hard-pressed to believe that number has improved with age. Labor is the top cost for municipalities, comprising roughly 40% of a town or city's annual budget. When that budget gets blown there are a few ways muncipalities commonly respond.