Human resources management (HRM) services help an organization better support its employees and become more time- and cost-efficient. HRM offers a strategic approach to maximizing employee experience and performance by focusing on effective onboarding, staffing, deploying, and overseeing workers within an organization.
HRM helps organizations effectively manage employee resources. Regardless of the business type or industry, employees are vital to an organization’s growth and success. Learn how companies benefit from HRM services and how the HR support consultants at New City Insurance help maximize workplace efficiency.
Today’s Human Resources Department Is Overworked
The expectations and pressure put on HR have never been higher, especially since the pandemic. Before COVID-19, HR teams were primarily responsible for performance, engagement, compensation, and other people-oriented focus areas. However, since the pandemic, HR leaders have had to deal with additional responsibilities concerning the physical and mental health of employees, as well as the increased presence of hybrid work environments.
A recent study conducted by Workvivo surveyed over 520 HR professionals from the US and UK on burnout in their HR departments. According to the survey, 98 percent of HR professionals are burned out, a trend that emerged over 18 months as workers encountered remote and hybrid work transitions. The survey also revealed that 94 percent of HR professionals felt overwhelmed in the past six months and 88 percent dreaded going to work.
Today, HR professionals are dealing with a wide range of challenges that help fuel burnout, such as establishing remote operations, planning for a return to the office, overseeing health and safety protocols, complying with COVID-19 vaccination requirements, and recruiting and hiring during a time of significant employee turnover, a period known as the Great Resignation.
However, the pandemic is not solely to blame. Even before COVID, the World Health Organization (WHO) identified burnout as an occupational phenomenon.
HR Is Stressed With Maintaining Company Morale on Top of Recruiting, Hiring, Onboarding, and Retention
With many organizations still short-staffed, most HR departments remain stressed and overwhelmed with maintaining company morale on top of their usual responsibilities, such as recruiting, hiring, onboarding, and retention. Due to being so short-staffed, many employees are unable to take time off when they need it, resulting in reduced motivation and productivity. Employees are also more likely to quit when they feel like they are not appreciated or valued by their employer.
According to new data from a LinkedIn newsletter, HR has the highest turnover of all job functions with an average quit rate of 15 percent over the last 12 months. There are several factors that are influencing HR professionals to quit. LinkedIn speculates the reason behind the high turnover rate is a dysfunctional company culture where employees gain an inside perspective on how the company treats their employees.
Burnout among HR employees is more significant than it appears. According to a recent survey by AllVoices, of the 53 percent of HR professionals that reported being burned out, 48 percent are looking for a new job. In addition, among those searching for a new job, 73 percent say they are burned out.
HR Professionals Feel Underappreciated and Burned Out
Larger workloads and other factors are taking a toll on HR professionals. Many individuals feel underpaid, overworked, and underappreciated, resulting in reduced morale and motivation across HR departments.
Many HR departments played a direct role in coordinating their company’s transition to remote work after the pandemic, and most are still dealing with the aftermath of this major change in the work environment. HR professionals are also responsible for informing their colleagues about changes in the workplace caused by economic changes, such as layoffs. While employees often look to HR for comfort and guidance, many HR professionals feel like they have little to no support.
According to a Workvivo survey, only 29 percent of HR professionals feel that their work is valued in their organization. In addition, 78 percent of respondents say that they are open to leaving their job this year in search of new opportunities. Over three-quarters of HR professionals hope to change their employer and are looking for better benefits and compensation, according to the latest LinkedIn Workforce Confidence Index.
HRM Services Help Alleviate Stressors From Managing Employees
While stress affects everyone differently and to varying amounts, most HR professionals agree that they are now facing more stress than in years past. A survey by Human Resource Executive found that 86 percent of HR executives say that their stress has increased in the last year. The survey showed that 44 percent say that their stress levels have increased dramatically, 11 percent say that their stress levels have remained the same, and just 3 percent say their stress has decreased since last year.
For most businesses, the main goal is growth. However, with growth comes more employees to manage, more data to track, and more complex processes to oversee. Human resources management is designed to make many time-consuming and routine HR tasks more manageable. In turn, this saves employees time and makes the company more productive.
Instead of having to manually complete paperwork or deal with piles of employee documentation, HR professionals can keep their focus on making important decisions to optimize company strategies regarding employee management, workforce planning, and more. Implementing HRM services is one of the best ways that today’s organizations can alleviate common stressors from managing employees.
HRM for Employee Benefits Compliance
Employee benefits compliance is a major concern for many organizations. Employers are under immense pressure to ensure that employee benefit plans are fully compliant with all relevant employment laws, such as HIPAA, COBRA, and ERISA. Failure to comply could mean significant penalties, fines, loss of tax-favorable status and in extreme cases, criminal charges.
Plan administrators, along with other HR professionals responsible for managing benefits, must follow all judiciary requirements while looking out for the best interests of participants. There are many fiduciary requirements that must be followed, such as ensuring that participants receive their promised benefits, establishing procedures in a fair and financially sound manner, funding benefits by plan rules and the law, and reporting and disclosing plan information to participants and the government.
According to a survey conducted by the International Foundation of Employee Benefits Plans (IFEBP), the top challenges that benefits departments face include compliance with regulations and laws (72.6 percent) and rising health-care costs (51.9 percent). To help manage these important tasks, many businesses now choose to outsource. On average, businesses report outsourcing approximately 40 percent of their benefit functions. HRM services help businesses remain compliant and avoid penalties.
HRM for HR and Payroll Integration
Companies often start to encounter challenges with HR and payroll administration as their business grows. With HR and payroll integration services, businesses can help alleviate the stress of accurately managing HR and payroll, allowing companies to better focus on the growth of the business. Integration has become essential for successfully managing employees and HRM services are required for seamless integration.
With integrated payroll, businesses can track the information they need to effectively manage employees and run the business. This means less time spent manually completing paperwork or employee documents. Instead, all the information is uploaded to a centralized location and can be easily accessed and updated as needed.
HR and payroll integration can be useful for streamlining a variety of administrative actions. For example, time and attendance software may be integrated with payroll, as well as human resource software and accounting software.
Human resources management services are designed to help give businesses a competitive edge in their industry. HR and payroll integration help organizations maximize their efficiency, streamline their HR processes, consolidate reporting, and help lessen the paperwork burden on HR professionals.
Start HRM Services and Help Your HR Department Support Employees’ Success
Every business is looking to increase its efficiency in the workplace to achieve greater output, better client-customer relationships, and increase revenue streams. This task is often placed on human resources, which is responsible for recruiting and hiring, as well as company-focused planning, among other tasks.
The HR compliance and technology experts at New City Insurance have helped countless businesses achieve greater efficiency and overall success by introducing and managing employee benefit programs, helping businesses maintain employee benefits compliance, developing growth strategies, assisting with payroll integration and HR administration, and providing ongoing HR support. Request a consultation with New City Insurance today or call 888.210.2765 to learn more about HRM services or to get started today.