Personnel and Military Records, Booking Services
Where does proper HR accounting in business start? Phoenix International Finance often receives inquiries from managers and business owners on how to properly organize effective HR accounting in compliance with all applicable laws.
It is worth noting that HR accounting is a rather extensive process, but we will try to cover its key aspects. In particular:
Define the first steps in organizing and maintaining personnel records. Compare the peculiarities of organizing HR work by an internal or external (HR outsourcing) HR service. Any employer is required to keep personnel records . This is a requirement of labor law to ensure social guarantees for employees.
HR accounting is a set of activities related to the collection, processing, storage, and use of personnel information.
Outsourcing of HR Accounting
Pros
The HR department is run by experienced specialists and experts with a wide range of knowledge. Payment is made for the agreed and performed amount of work. The likelihood of financial risks is minimal, and the relationship is backed by a contract. HR outsourcing specialists are responsible for their work and are interested in long-term cooperation. Outsourcing is customized to the specific needs of the customer. Since outsourcing takes over several HR operations, it allows management to focus on strategic business processes.
Cons
There may be less monitoring of task execution and quality. There is a risk of data leakage when data is transferred to external users. Due to the physical distance from the customer, there may sometimes be delays in responses. The process of changing the person responsible for HR accounting can be very laborious and time-consuming.
Thus, the benefits of HR outsourcing for small and medium-sized businesses are obvious.
Maintaining personnel records at an enterprise is very important, as it allows you to control and optimize staff performance. Proper maintenance of personnel records provides the company with the opportunity to:
01.
Efficiently allocate jobs and plan staffing needs.
02.
Ensure that employees meet the qualification requirements and improve their skills promptly.
03.
Timely calculate salaries, vacations, compensation, and other social benefits.
04.
Ensure compliance with labor laws and avoid possible sanctions or fines.
05.
Increase employee motivation by tracking their performance and providing appropriate recognition.
06.
Plan the budget and manage personnel costs.
Thus, maintaining personnel records is a key element of enterprise resource management and helps to increase the efficiency of the team.
