Profit Leaks Are Killing Your Company: Part 2
In part one of this five-part series, we talked about data barriers and how lack of access to accurate facts and information create problems with data-driven decision making. In part two, we’re going to discuss how syncing multiple systems can cause data errors.
Profit Leak #2: Syncing Multiple Systems
Many companies decide to go with “best of breed” solutions to ensure they get the best of HR, payroll, timekeeping, and more. But creating a patchwork of systems can lead to syncing errors with your data.
Using multiple point systems for workforce management means choosing a system of record where all of the data is synced based on triggers. This may seem fine in theory but can result in duplicate data entry, loss of data, and noncompliance penalties.
According to a recent PWC study, the average organization is utilizing 3-4 separate systems to accomplish their HR and Finance functions. In the case of ACA reporting, having to pull data from multiple systems is time-consuming and can result in errors. Let’s look at how a multi-system approach can affect ACA compliance and reporting:
How Syncing Errors Can Impact ACA Compliance
In a unified solution that offers all of the workforce management features your company needs, there is one point system and one centralized database that houses all of the information. The data you see in benefits administration is the same data being used to track time and process payroll. With this closed-loop approach, there are no sync errors and no profit leaks.
Screenshots of ACA alerts and Benefits Administration tiles from APS OnLine
According to the Congressional Budget Office (CBO), employers in the United States will pay $164 billion in shared responsibility penalties over the next ten years, including $7 billion in penalties for 2015. Source
In our next profit leaks article, we’ll discuss transactional inefficiencies.
Are Profit Leaks Killing Your Bottom Line?
Want to learn more about how profit leaks may be affecting your business? Download your free copy of CFOs: It’s Time to Talk to HR About Finances.