Why Organizing Your Company With Position Management Can Save You An HR Headache

Every company struggles to figure out which system is best for their HR department when it comes to payroll. However, if you’re a company that has a complex line-up of workers (such as employees who shift back and forth between various department or part-time employees who, when combined, will equal one full-time position) then sorting out your payroll could be more complex than what a lot of other companies have to deal with.

Many companies who are in the same boat as yours are starting to turn to position management as a more effective way to sort through their payroll. 

What Is Position Management?

Position management utilizes organizing your payroll by the position that employees fill, rather than breaking down the payroll based on each individual employee’s situation. As there are constant changes within the “line-up” of who’s on your “team” in your business, organizing your payroll based on position will help you have a better overhead view of how departments should be paid, which ones need a promotion, and which departments need more people. 

With a position management system you’ll always know which part of your team has enough employees filling out the ranks and which departments on your team require additional team members. 

Other Ways That A Position Management System Will Help Your Business

Below are a few other ways that position management will save your company money (and you a couple of headaches.)

You Won’t Over-hire In One Department

Recruitment of employees takes a lot of time and energy for your HR department. It also requires for someone to train all of those employees, which can be a costly expense. While these hassles are well worth it to bring new talent to your team, you don’t want to find that you spent these resources on employees that a department doesn’t truly need. 

With position management, you’ll be able to tell exactly how many employees a department will need and it will save you from going through a recruitment process that involves hiring redundant employees. 

Visualize Your Budget More Simply

As position management makes it easier to see which departments need, or don’t need, additional employees, you’ll be able to create a more informed budget of what the next year will hold. You’ll be able to tell where your business may not have as much income due to bringing on more people. You’ll also be able to see when those employees begin to produce and your income levels out.

With position management in place, you won’t have to worry about being able to forecast your budget properly. 

Don’t Worry About Managers Leaving

When a manager leaves your company, it can through their whole team off since they might not know who to report too afterwards. This can cause a lot of ambiguity and hurt the productivity of your team. 

With position management, there is no worry about managers leaving because it will be evident to your employees who is the next in command. Therefore work can continue like normal.

Chung Nguyen

Chung is a seasoned business journalist with a focus on sustainability and corporate social responsibility. With over 15 years of experience covering the world of finance and economics, Rachel has established herself as a respected authority on responsible business practices. Throughout her career, Chung has interviewed some of the most influential leaders in the corporate world and has covered major business events such as the World Economic Forum and the United Nations Climate Change Conference. She is also a regular contributor to leading business publications and has won several awards for her work. Chung's passion for promoting sustainable business practices has also led her to author a book on the topic.