In a December 2023 updated report, Ernst & Young (EY) found the average cost per manual data entry made by an HR professional increased to $4.78. Read about EY’s latest findings for more information.
The next time you use the self-checkout at your favorite grocery store, think about how it lends itself to the big picture. For instance, do you feel the business benefits from:
- shorter lines
- less frustrated customers
- the ability for employees to assist more shoppers
If you do, you’re absolutely right!
Because self-service functionality elevates everyone’s experience. Yet even in 2022, some business leaders still don’t see how giving their employees greater control over their HR data benefits them.
To crack open this lingering myth, let’s take a threefold approach:
The data daze
We’re used to seeing large, organizational impacts come down from leadership, but have you ever considered how they can also rise up from employees?
Considering Ernst & Young’s recent data — which prices the average manual HR data entry task at $4.70 — it’s not hard. With this figure in mind, recording info from a:
- single W-4 costs $11.68
- receipt for expense reimbursement costs $13.66
- time-off request for PTO calculation costs $20.01
Remember, these are basic examples. Imagine how quickly this would compound with performance reviews, recruitment, training or literally every other piece of HR’s role.
Luckily, through the power of self-service, these pricey scenarios evaporate, translating to more efficient operations.
The compliance crunch
Every business deals with compliance, but they don’t have to approach it alone. In fact, when your workforce has the option to truly own their data, they lend the greatest helping hand.
From FLSA to COBRA and every acronym in between, there’s a lot of legislation for HR to juggle. But many of these laws impact one consistent process: payroll.
Until very recently, HR had no choice but to dump hours upon hours into payroll. Meanwhile, employees had to hope their pay was accurate. And this mystery surrounding pay is everything but comforting when you consider 69% of employees live paycheck to paycheck, according to the American Payroll Association.
But when they have access to a self-service payroll experience, they don’t have to guess if their pay is accurate; they know it is. And their assurance lends itself to HR’s confidence, which in turn means less executive concern over compliance pitfalls like:
- audits
- penalties and fines
- costly, rushed corrections
- and more!
It’s simple: Fewer regulatory hurdles means more opportunities for proactive strategies and businesswide progress.
Inspiring innovation
Yes, self-service tech benefits employees. Like, A LOT. And by now, it’s clear how implementing employee-driven tools helps your business on an incremental level.
And that’s not all self-service tech does. In fact, its biggest impact might come from something that can’t easily be measured: opportunity.
According to Forbes, traditional systems focus on core, data-driven processes. But today, more employers are expecting the workforce tech they use to help boost engagement and manage talent’s expectations. At the same time, it needs to promote culture, diversity and, of course, innovation.
When employees are given the opportunity to embark on their own professional journey within an organization through something like a versatile learning management system available anytime, anywhere, it could help them envision how much they contribute to your organization’s success.
Check out our YouTube series to bust open even more HR Myths. And explore Paycom’s single software to see how self-service tools serve your business’s future.
DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.