People resource – managing employees online

Human capital management is one of the biggest asset of a firm that can usually be measured and developed. Small and medium enterprises (SMEs) often settle to manual employee management system where employees seem not to have transparency on what is happening on their career.

Not only SMEs, most start-ups are unable to manage their employees well and this in turn results to high attrition rate. It is important to focus on the well-being of the workers as without them, businesses will be paralysed.

In HR perspective, attrition means a lot as it measures how company provides not only good compensation package but also an environment where everyone is given fair treatment regardless of cultural identity.

To better understand the context, let’s discuss the general HR process among companies (some may not be applicable to some companies but can be viewed as trivial to employees growth). This article does not explicitly discuss payroll, benefits, resource management, time and leave management.

Recruitment or Talent Acquisition

Employee’s lifecycle starts with recruitment process. Usually, the vacancy is decided by the management team – if additional resource is needed based on the work pipeline. Once the new vacancy is confirmed, recruiter will create a requisition for a specific job posting. This process takes a while as it involves shortlisting of candidates, interviews and finally job offer. When the candidate accepted the job offer, onboarding follows where documents are submitted either in person or online. But there are underlying processes behind such as background check, assessment, employee verification of work permit, among others. I will discuss this topic in detail on my other articles.

So this comes down to proper selection of candidates and offering a job to the right one. If this process fails (e.g. mismatch of skills), the rest of the process may fail if cannot be managed accordingly. That is why managing employees is crucial to the success of a business.

Performance Management

Oftentimes, this portion of human resource is overlooked. This is true to small companies and start-ups. When the employee is hired, management may not be able to focus on the direction of the employee. And this is the reason why most workers change job in a short span of time. Usually, even large corporations – the review of performance only happens once a year. One-on-one with employees may happen once a month or sometimes not, and tracking where the direction of the employees is heading to a gray direction.

Normally, performance management involves employee appraisal (e.g. goal setting, evaluation of semi-annual or annual performance, etc.), promotion, salary increase, rewards and recognition and performance improvement plans.

Learning Management

With the rise of online learning, the usual program plan for learning of most companies is e-Learning or online learning. There are solution providers that are focused in making sure that employees are up to speed on the newest processes and technologies they can use on their respective tasks. It is imperative that employees learn not only through online courses but also learn through mentorship programs (shadowing to most senior members of the team). It does not only underpin the development of employee’s talent but also raises confidence and comfortability of the employees to deliver their tasks efficiently.

With all that being said, there are available package software hosted over to Cloud which helps company to manage every aspect of employees lifecycle online. Manual employee management system will definitely be a challenge and not recommended. Most prominent ones are Oracle HCM, Workday and SuccessFactors. But these are the biggest players in the industry. And acquiring any of these software platform will cost a company a lot which is not practical to SMEs and start-ups.

There are also small software providers offering solutions to companies needing HR online portal to manage their employees but it looks like it does not attract SMEs and start-ups.

It is of utmost importance that in this era where technology rules, managing one of the most important assets of the firm needs to be revisited. Otherwise, employees will keep on changing jobs and companies will lose their talents and definitely lose their investment. For most of the SMEs and start-ups, it will be immensely helpful if they use small HCM providers catering basic needs of their workers. Some providers are BambooHR, Namely, PeopleMatter, etc.

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