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Talent retention versus cost optimization

de Colorful.hr | October 18, 2012

[quote author=”Roxana Maxim”]Cutting costs will always be an interest area for the business sector, irrespective of the economic and political coordinates and I am saying this because in the end, any successful company is a competitive company.
During the „The efficiency of payroll processes in Human Resources strategy ”During the workshop, organized on October 17th by the HR Manager magazine in partnership with Romanian Software, we tried to find out how can we optimize the fiscal cost of the labour force and how the outsourcing can facilitate the HR to be advanced as Strategic Partner statute.

The most recent market studies show that the salary amount is very important for the employees when they evaluate the employer, however the benefits and compensations aspect becomes more and more popular: HR managers observed that the employees are receptive to the benefits packages. Thus consequence, in order to reconcile the way in which a company chooses to reduce its costs with the personnel retention, a company can use non-taxable benefits or certain benefits with fiscal facilities.

„Meal tickets are the most popular benefit together with gift tickets and private pension plans” said Cristina Simion, Operations & Communications Manager at Romanian Software and one of the event speakers. Why the meal tickets are often included in salary packages? „The other benefits with fiscal exemptions are not visible as the meal tickets and they should be reminded to the human resources specialists. Also, when a company adopts a certain salary package structure, rarely becomes subject to change. I notice a constant increase in the interest to include in the benefits package the vacation tickets and the voluntary health insurance, more and more Romanian listed companies find appealing to offer to their top and middle managers, stock option plan advantages”, said Cristina Simion.

In Cristina’s opinion, the legislative incertitude is sustaining the employer conservatism with respect to the salary packages: there are benefits with fiscal exemptions that become not applicable, or the vice-versa which is discouraging for diversification of benefits offered within the salary packages in the way of optimizing them.

Otherwise, the fiscal cost optimization in human resources sector includes the management of human resources including dependent or independent labour force.
“Regarding the collaborators, the fiscal optimization occurs when there are multiple possibilities to frame the contract (juridical form) based on the activity’s substance and starting from the contract type, the lower fiscal related cost will be chosen. In Romania, for example, frequently used structures are civil legal agreements, freelancers, intellectual property and day workers”, said Cristina Simion.

HR in a new dimension

We are frequently talking about HR and its objective to become a strategic partner – through know-how, inter-collegial relationships, relation to business, etc., instead of talking about the time that a HR professional needs to dedicate to the business mechanism learning.

„In order to become a strategic business partner, HR practice needs more time, and important time is allocated to payroll and personnel administration at the moment – approx. 80% from the working time of an HR department is allocated to this payroll component (information collection, documents issuance (salary certificates, reports, etc.)”, said Mihai Găvan, Sales Manager at Romanian Software.

Mihai considers that through outsourcing, respectively through an integrated solution, the HR department can focus its efforts more on the business growth side: training and development, planning, strategies, recruiting, etc. „Certainly, employees in the HR department will be involved in the processes, except with the fact that less time will be allocated to payroll related activities, timesheet validation or documents’ issuance” added Mihai Găvan.

What is the applicability of the suggested solution? “The applicability is the same for all business sectors, important factors in a successful implementation of the solution are: employees’ responsiveness to the innovative use of the instruments, instruments aimed to eliminate idle time, their capacity to identify the utility of such solution as well as the access to computer in certain situations” said the Romanian Software sales manager.

During the event, Mihai presented the way by which Romanian Software wishes to relieve the HR departments from the actions linked to personnel administration processes: an integrated solution including a payroll processing component, a time management component, a personnel management and document management component, instruments that can be accessed anywhere via internet.

„My vision is that in the human resources field will be built a unique and complex solution that will respond to any HR department needs. This solution should have at least a payroll and personnel administration component, one for time management, recruiting, training, evaluation, documents management, as well as a communication component for employees within the company and last but not least, the access to a provider capable to offer high quality and professional services. This is my vision and the path that I am taking. Today we tried to show you some steps that we took on this road.” said Victor Dragomirescu, Romanian Software CEO.[/quote]

http://www.cariereonline.ro/articol/cum-se-impaca-retentia-talentelor-cu-optimizarea-costurilor

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