Keeping Good Employee Records is tedious but essential
Being in business is interesting, often fun, but not always. Unfortunately, some tedious jobs have to be done if you want your business to thrive. A good example is the task of maintaining accurate employee records. Doing this is essential for any business, big or small. To help you to see why that is, we have put together some examples that demonstrate what can go wrong when this important task is neglected.
Providing the tax authorities with accurate records
Keeping accurate records of how much each employee is paid is essential. A company that does not keep track of staff wages will not to be able to submit an accurate tax return. Not doing so can have serious consequences especially if the tax authorities decide to carry out an audit. If they discover that the wrong amount of tax has been paid they may choose to prosecute.
A better understanding of your bottom line
Accurate payroll records can also be used internally. Those firms who record staff costs accurately can get a proper understanding of production costs. Without accurate staffing costs, it is impossible for a business owner to understand how much they should be charging for their products or services.
Keeping accurate records also makes modelling what would happen if staff wages were to rise much easier. Good employee data improves a business owner’s ability to look to the future and work out what direction he or she should be taking their business.
Avoid disputes and employment litigation
Every year, thousands of firms end up in employment tribunals because of disputes with their employees. Often this can be avoided.
When a firm keeps a proper record of employee contracts, they can use that information as a basis for wage, or working condition, negotiations. Having this type of detail to hand also makes it far easier to quickly resolve misunderstandings and disputes, and do so privately without involving lawyers.
Keeping track of training
Once you have found a good worker you need to retain him or her, and make them as productive as possible. Providing your workers with good quality training is the best way to do this.
The more skilled your employees are the more productive they will be. They will become confident and adaptable workers, who are more likely to enjoy working for you. The fact that they are happier in their work means that they are more likely to want to stay with your firm, which will save you the hassle and cost of having to recruit new staff. Therefore, recording who has been trained, and who has not, is an important task. Doing so allows you to ensure that every employee has the right skills and that they are kept up to date.
If you want to learn more about how staff training supports business growth, we suggest that you read this case study.
Keeping staff records the easy way
The best way to keep your staff records up to date is to invest in HR software. If you buy the right package, and use it, you will always have the information you need easily to hand.
CascadeHR’s human resource software is a great example of the type of system you need. It includes a range of modules, including payroll, training and workflow management. You can choose which modules you buy, which means that you will not end up paying for functionality that you do not use.
This post is in association with CascadeHR