White Paper
We understand that your time is precious . This precious time if put to focussed business deliverables shall give you manifold returns, however, if the same time is spent on managing –your organizations People related matters rather than reviewing it and giving overview then possibly one of the two things is happening : 1. Either, you do not have a fully functional HR department or 2. The HR Department is not aligned to your business goals. Just like Finance Department is not complete by having a few accounts people similarly there are various activities needed to be done in an HR department and having just a coordinator may not serve the purpose . The key sub functions in any HR department include : a. Talent Acquisition : This includes search and selection b. Talent Management : This includes various activities of a full scale PMS System c. Talent Development : This includes various activities of training and capability building d. Talent Engagement : This includes various activities of Employee Engagement e. HRMIS : Maintaining the complete data base and converting it into various Decision Making points and Analysis for Management At a minimum 1 specialist member in each of the five verticals is required for a full flegdedHR Department . Besides, these five one HR Head is essential to manage them . Medium and Small Organisations despite wanting to get the full benefit of a HR department are at times not ready to invest so heavily at the early stage of the business. Hence, a Coordinator is retained assuming that this one or two person army will suffice for the whole department . In the process the Organisation misses out on the best practices needed at an early stage and pays for it later on in the form of rework, productivity loss attrition, untrained or under developed employees, succession planning issues etc . The THRO solution offered by ElenchusHR Solutions helps to provide a potent solution to this big problem of a business leader . Please find a comparative indicator of all the three models discussed here :
Parameter |
Full HR Department |
HR Coordinator |
|
Impact |
|
Cost | Appx. 36 lakhs per annum | Appx. 3 lakhs per annum | Appx. 20 lakh per annum |
|
|
Quality of Delivery | High if the right people are in place for a continued period of at least 3 years | Moderate to Low without supervision . Better with full time Director Supervision but never equal to Full HR Department | Very High | High Quality of Delivery on all parameters over sustained period with full accountability . | |
Continuity of the HR team | Medium to Low | Medium to Low | Very High | No business discontinuity and hassle of finding a new person fit to the culture | |
Additional Costs such as annual increments , PL , Bonus infrastructure etc every year | Variable | Variable | Fixed | Organisations cost is under control | |
HR Department Cost per year | Fixed , related to salaries | Fixed , related to salaries | Variable , related to number of actual employees | Organisation can run a cost effective HR department in a variable cost model . | |
Fresh Insight | Depends upon the time and money available in business | Low as the single Coordinator is anyways stretched | Available always due to the strong domain work in Core HR area . | Organisation always gets the best and latest tools and practices of HR to keep the organisation People ahead . | |
Scalability | Subjective to the team's capability | Not Possible with one person | Possible on a Just in Time basis | Organisation can plan its business expansion rapidly without worrying about People related matters . | |
Management Control | With the Promoter , Board | With the Promoter , Board | With the Promoter , Board | Cost Effective HR department with full Management Control | |
Confidentiality | Subjective as at times the Internal HR person is also an employee and a social animal | Subjective as at times the Internal HR person is also an employee and a social animal . | Guaranteed as it is the basis of a service agreement | Cost Effective HR department with full Management Control with complete confidentiality | |
ROI | Department cost to increase with employee count | Senior Leadership time consumed due to hands on approach , business priority to pay the price | Appx. 50% on annual basis . | In a variable Cost model the gains are over 50% annualised in terms of productivity , avoiding rework |