How CPAs Can Help Clients Manage Rising Labor Costs
Let’s face it – the cost of labor can be brutal on your clients … maybe even your own CPA firm. And it’s not going down anytime soon. The Bureau of Labor Statistics recently released their second quarter analysis for 2016 finding “unit labor costs in the nonfarm business sector increased 4.3 percent in the second quarter of 2016.”
Maybe you read those figures above and thought, “Well, those are related to nonfarm businesses! I just found my new calling!” If you’re thinking of swapping your desk for a John Deere, farm labor costs are forecast to increase 3.7 percent in 2016.
Frankly there’s simply not much left to do in any industry except tackle rising labor costs head-on and plan a strategy that sets you and your clients up for success. A strategy that harnesses the role of an entire HR team without costing your client another salary (or three)!
Have Your Client’s (and Your Own) Back
HCM systems (Human Capital Management) have made incredible gains in an increasingly paper-less world. Long gone are the days of hunting down important payroll documents in one of eight filing cabinets, de-crinkling it, and making it look semi-professional before noticing the errors made when it was created all those years ago.
Now, an HCM has the power to manage an entire workforce through one integrated system. With the cultural and political tides being what they are, we all reluctantly knew that labor costs would only continue to rise – which has sparked inventive ways to keep businesses growing without the need for more roles.
For CPAs, this means life becomes a little easier without having to go to your “happy place” before examining a client’s financial records.
An all-in-one Human Capital Management System gives you and your clients the ability to streamline processes in ways only dreamed before.
Below, we’ll guide you through some of the ways a fully integrated HCM acts as several members of your and your client’s team without the additional salaries – or gossip.
Controlling Time and Leveraging Labor
Whether you find yourself spending hours on payroll, recruitment, or onboarding new employees, an HCM simplifies these processes in ways that are easy for everyone on your team!
A great HCM goes above and beyond, tracking employees throughout their company lifecycle. Knowing that labor costs don’t just end when an employee leaves, new HCMs provide a single record system with all the information you need related to an employee from the moment they apply to their exit interview. This gives your client invaluable insight when hiring, scheduling raises, or gaining a deeper understanding of their labor force.
Likewise, here are a just a few more ways employee tracking helps your clients reduce costs:
- 24 hour employee & manager access to payroll documents, historical data, time-off calendars (for requests and sign-offs), and much more
- Be made aware of employees approaching overtime
- Be made aware of any incidents that may require additional action
- Positioning your next hire for long-term success
- Set up pay increases, job titles, bonuses, and measure against industry standards
When Streamlining Doesn’t Cut It – Riverline Your Processes
A great HCM doesn’t trickle out your processes like some small, narrow stream – it roars like the Mighty Mississippi!
Reporting is daunting. It’s dull. But an all-digital HCM gives you the ability to make custom reports on the fly, reporting custom criteria and exporting as whatever extension you may need (.CSV, .PDF, .XML, etc.) Since you probably don’t want to do this every single week/month, set reports up to automatically email themselves to you when you need them!
Or let’s say you’re looking to hire. What should be exciting quickly becomes stress-inducing. Piles of applications grow, emails are pouring in, and you’re wondering “I thought we were approaching full employment numbers?” Well, HCM is here to the rescue!
Post jobs to multiple platforms instantly. Those thousands of applicants? Don’t worry, let your awesome HCM handle it. Sort applications, communicate with potential candidates, perform background checks, and hire your dream candidate with no more than a few clicks.
Compliance Made Simple
Compliance may as well be a dirty word. Thankfully, HCM developers have found ways that set your client up up for complete compliance within their industry – and that’s a bold statement to make.
But with a great HCM by your side, you can be sure that all the t’s are crossed and i’s are dotted. Automated reminders give notice when important documents haven’t been read or signed. In fact, all pertinent documents can be scanned or stored, accessible precisely when you need them.
We hate to mention it, but audits do happen. If a client’s organization should ever be scrutinized, custom data exporters instantly give you the information you need to quickly get back to business.
A New Dawn for HR
The HR industry sure has changed. Instead of biting the bullet and advising a client to hire an HR team that might not make fiscal sense, adopt a modern advantage that ensures processes are performing exactly to their needs.
Even if your client has a wonderful, hard-working HR person, their focus can shift to more pressing matters as an HCM collects and oversees daily interactions between staff and management, payroll, benefits, continued training, reporting, accountability, and so much more.
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