"Contemporary personnel and payroll systems handle so much more than just employee record-keeping and attendance-based calculations. Their evolving functions are increasingly bolstered by AI technology", says Vojtěch Klimeš for the webside aktualne.cz.
There are various methods for attendance monitoring and wage calculation. Smaller companies might still rely on arrival and departure paper logbooks and Excel spreadsheets, but this solution seems unsustainable for any slightly larger business. A fundamental change has emerged with a much more intensive utilisation of remote work and, generally, working outside the office. Personnel and payroll systems need to be ready for this new situation. Their task is to handle all administrative duties associated with the employees and accurately calculate their wages every month.
“It is becoming increasingly challenging for businesses to administrate the entire labour relations agenda, not only due to the rise in remote work but also due to the influence of frequent changes in related legislation. However, there are still solutions that can handle all these tasks and even help with a variety of other processes. These include, for example, shift planning or monitoring the validity of medical examinations, certifications and employee training, “ explains Vojtěch Klimeš, the Development Director of OKsystem, a company providing the OKsystem for personnel management, attendance, and payroll.
Comprehensive Digitisation of Attendance
Effective from the beginning of October, the labour code amendment now allows the digitisation of documents and communication within employment relationships. This means that companies can complete employment contracts and agreements entirely electronically, as well as digitise all the other communication and documents in the relationship between the company and its employees. “The change in the labour code presents a significant opportunity to fundamentally simplify and accelerate processes within human resources. For instance, companies with a larger number of remote working employees or employees working in branches or stores all across the republic no longer need to distribute paper contracts in person. Waiting for signed contracts to be returned is no longer necessary. An employee can sign the contract on a tablet, for example, through approval upon logging into the HR system, or using other purely digital methods, “ adds Vojtěch Klimeš.
The digitisation of documents and communication in personnel management aligns with the current trend of intensive remote work. The amendment to the law takes this fact into account. A lot of businesses are also facing an issue with monitoring the attendance of employees working from home and outside the office generally. Up-to-date personnel-wage systems are designed for remote work, enabling the recording of attendance through a mobile application or portable terminal. Employees can log in just as if they were working in the office.
Moreover, attendance documentation can be enhanced with specific functions to verify whether an employee working remotely is indeed located where they should be. As Vojtěch Klimeš explains:” The attendance system can check, for example, whether the employee has logged in via their home Wi-Fi network. It is also possible to monitor the presence of employees at a remote workplace through the location of their devices and the use of so-called geofencing. The option for integration with other applications enables tracking of work on individual projects and other details.
AI will also help in HR
Software solutions for personnel management support are continually evolving, with a constant influx of new functions and integration possibilities. These solutions can seamlessly connect to systems managing employee benefits, such as Cafeteria systems, and various platforms for implementing educational programs for employees. Similar to other areas, the deployment of machine learning and AI technologies is rapidly advancing in personnel management.
Vojtěch Klimeš describes the application of AI in personnel management: “With the use of machine learning algorithms, we have developed a solution to shift planning that considers a wide range of parameters, including the capabilities achieved with various combinations of specific employees on shifts. AI is also utilised in attendance control, where our system reports deviations from normal data only to relevant supervisors and automatically approves the attendance of other employees based on specified conditions. “
Using intelligent algorithms, it is possible to consider not only the required number of employees during shift planning but also the necessary combination of qualifications or authorisations, daily time, and the course of working hours in terms of employee workload, contractual and legal conditions for worked hours, as well as overtime or personal preferences of employees. “Shift planning has become a demanding activity in larger companies, consuming a significant amount of time for relevant supervisors. With the support of AI functions, shift planning is not only faster but also considerably more effective. HR managers and their specific knowledge about their teams cannot be replaced by AI, but it serves as a valuable assistant for them, “ adds Vojtěch Klimeš. The use of AI is not the only direction that personnel systems are taking. “To at least partially restrict the effects of alienation that inevitably occurs in companies where a noticeable number of employees work remotely, we have integrated intranet features into our system. Here, employees can find new and important company information and communicate with each other as well,” says Vojtěch Klimeš.
Start Digital Transformation
The transition from the current payroll system to a new one does not represent a demanding process, as reconfiguring the payroll calculation parameters is typically sufficient. Nevertheless, the implementation of a new system is more challenging for personnel management because this process often requires a meaningful change in existing processes, especially concerning digitisation. “Many businesses attempt to incorporate their already existing, usually complex processes into new personnel systems, but such projects often encounter difficulties and may result in failure. A more effective approach is to rely on the recommendations of consultants with experience from numerous companies and projects, steering towards a more efficient direction for digitisation,” recommends Vojtěch Klimeš from the OKsystem company.
The implementation of a new personnel payroll system is a relatively simple matter from a technological standpoint, especially if the company opts for a cloud-based solution. In such cases, the entire responsibility for the system lies in the provider’s hands, encompassing updates, necessary repairs, as well as the security and availability of the entire system and its functions.
Original article published on www.aktualne.cz (in Czech only).