Control Labor Costs, Optimize Budgets and Recruitment Efforts With Position Management
Staying on track regarding your labor budget annually is important because labor represents the largest expense as a business. Position budgeting (also known as “Position Control”) is the foundation of sound budgeting and its’ strict adherence is essential for forecasting labor dollars. But when making decisions about staffing and budgets there are so many questions that come up:
- How do you know how much you can afford to pay an employee?
- What operating budget for labor to hiring managers, HR, CFO?
- What are the budget constraints by departments? And if there is an imminent business need, is there budget elsewhere to pull money for a critical hire?
- How does HR know if requested job requisition is budgeted position?
- How do you know if your labor costs are balanced and expenditures controlled throughout the year?
- How do you determine the profitability of each position if you don’t know the total expenditures?
Position Management in OnePoint leverages the unified database architecture to help employers simplify the relationship between positions, jobs, employees in the organization against payroll numbers and budgets by cost center or department all the way to the position level.
Once in place, every position in an organization exists independent of employees, whether it is filled or not. This additional ability to group the costs by position makes it easier to view and analyze operational budgets versus actual labor costs. As your employees are being paid in real time, you can see where the budget is at, make the necessary adjustments, shift unused budget to needed departments and have better control over labor budgets and based on real-time data throughout the fiscal year.
What are the Benefits of Position Management
Budget and Forecast Labor Costs:
The Position Management Module provides Position Management provides a blended hierarchy chart, which produces comprehensive organizational charts including both active employees and open active positions. Having this detailed view in real-time makes it easier to hold strategic or executive level conversations about operational costs/budgets on a granular level. This all encompassing view including real time financials along with annual total financials per position enables more meaningful decision making about succession planning and recruitment/staffing objectives on granular level like job title, department, location, labor cost center, grant, etc.
Payroll Compliance:
Control Payroll expenditures with full visibility of each position at an even more granular level; Department. Location and Job Title Not only will you have the ability to scrutinize labor budgets throughout the year for your regular positions, you can also instill position control over the challenging part time, temporary and seasonal positions and ALL can be based on certain time frames and work in conjunction with your payroll allocations. Employees can be assigned multiple positions with different rates for each position. For example, a hospital may need to hire 4 nurses of varying types (LVN, RN); rather than tracking each job individually, a broader position category of Nurse could be created and then all 4 nursing jobs would fall under it. The tools within Position Management allow for inclusive budgeting of the 4 nursing jobs, as well as tracking of the employees assigned to those jobs.
Recruitment:
Only begin recruitment for positions that are with in budget. Have not only the visibility of allocations and position vacancies, hiring processes are defined to include confirmation of the budget dollars, approving a job requisition request, with warnings (and if wanted) restrictions set to keep a maxed out position from bringing on a new hire. create a specific occurrence of a position, which then enables your organization to track the number of openings within that position, establish hierarchy structures accordingly, monitor headcount and manage budgets. Headcounts are easily monitored even for the employees who might be assigned to multiple positions with different rates for each position. This means recruiters will always know the current staffing levels and the exact number of vacancies at any time so they can hire the right number of people to effectively manage department budgets and labor costs.
Reduce HR Administrative tasks:
Once position management is configured, only the position needs to be applied to the employee and ALL the other data follows. A reporting hierarchy structure can be established for positions that report to other positions, such as Position A reports to Position B, with definable permissions to reflect your organization. There is no need to manually input details each time an employee comes on board. When a new employee is hired and Position Management has been set up, only the employee data and the position name that the person will hold needs to be entered. Reporting and tracking of budgeted amounts versus actual is done and stored all on one screen rather than in a separate reports and is updated accordingly as positions are filled or vacated. HR can make mass updates to job-related information rather than make individual changes to each employee’s profile.
Position Management is a configuration feature within our Core HR module. Contact OnePoint HCM for a demonstration of our HR capabilities.