Why Businesses Need HR technology & Analytics More Than Ever During COVID-19
It’s no secret that businesses today are relying more on technology and real-time data than they ever have before. This is also one of the most challenging times that the business community has faced in a very long time. Some may be wondering what tools they can use to help them work through the issues they’re facing such as the need to restructure their team, provide support to newly remote workers, increase sanitation and other health safety protocols, revamp benefit and leave polices, and re-think their compensation structures. Other businesses are being forced to down-size their workforce and lay off workers, either temporarily or permanently or retrain their employees to perform new roles. In these uncertain times, it’s very important to carefully think through any strategic changes before going forward. The use of HR technology and analytics helps business owners make the right decisions for the changes they are making because of COVID-19.
How technology and analytics can help businesses during COVID-19
Changes to workforce
A business’ biggest asset – and expense – is its workforce. When the needs of the business change, the roles played by the workforce will need to change as well in order to ensure the viability of the business model. HR technology tools allows the HR team to lay out the businesses’ new workforce needs along with a projection of the revenue that could be brought in with the right workforce in place. Businesses that have lost a large portion of their revenue will be forced to reduce their employee expenses. HR technology can help to identify the expenses associated with each employee, and break down the costs associated with certain benefits programs such as 401(k) matching in order to provide some cost savings options without having to resort to laying off huge numbers of the team. Employees will feel reassured to hear that the business is going to be able to avoid layoffs and will likely understand the need to cut other expenses in order to keep everyone employed during these difficult times.
Changes to infrastructure
Businesses can use analytics to identify if their business location(s) are in a Coronavirus hot spot. With that information, they can plan around having those employees work remotely or make significant safety changes to the work environment to ensure employees feel safe. Some businesses may save a significant amount on infrastructure expenses by having employees work remotely and choose to continue offering remote work options even beyond the pandemic.
Changes to employee leave/sick policy and medical coverage
Analytics can be used to help businesses understand the effect that Coronavirus is having on their workers. For example, with COVID-19 having a 4-14-day incubation period and an active period of three plus weeks, employers may want to provide more paid leave or sick days for employees who have been exposed to the virus. Employers may also wish to reevaluate which employees qualify for the company health insurance plan and use HR technology to project the expenses of allowing more workers such as part-timers to join.
Changes to compensation and benefits
With many businesses rethinking their workers’ job descriptions and responsibilities because of changes from COVID-19, it’s necessary to re-evaluate compensation and benefits. HR technology can be used to look at each employee’s current pay and benefits to ensure that they meet industry standards for their new role and project the cost of all compensation changes to ensure the business will continue to be profitable. They can also compare the savings associated with employees who may choose an early retirement because of Coronavirus with the expense of training new employees. These financial projections can be used by the leadership team to ensure that their costs are where they need to be.
How partnering with a PEO can support your business during COVID-19
A PEO provides small businesses with many advantages that they might not otherwise be able to afford. These advantages have become even more important during this international health crisis.
When small business owners’ partner with Makai HR they:
Gain peace of mind that they are complying with all of Hawaii’s labor laws, which is especially important when decisions are being made about how to handle a health crisis.
Can provide comprehensive health care plans that will give your employees peace of mind about going to the doctor for treatment and testing.
We are also here to support your business if you are working remotely:
Our cloud-based platform means that your employees can manage their HR needs through a computer, tablet or phone, making it easier for them to work from home.
Our cloud based HRIS platform means that your HR team can manage HR remotely if they are sick or everyone is working remotely.
Pro tip: this is a good time to encourage all employees to update to Direct Deposit to reduce in person bank transactions and continue timely payroll payments. Do not delay. Contact us today to get started!