Finding and retaining the right talent is essential for the growth of your business.
With up to 47% of professionals expected to switch jobs in a year, the challenge of maintaining employee retention keeps rising. While hiring new employees to fill vacant positions can be an option, it is not a sustainable solution as, on average, it costs 6 to 9 months’ salary to replace an employee.
Human capital investment is a sustainable solution that can help you:
- Increase employee satisfaction
- Improve retention rates
- Promote employee engagement
Using accounting technology, you can enhance your business skill development programs and gain data-driven insights by implementing cutting-edge strategies. By developing a better work environment that motivates your entry-level new hires to encourage digital transformation, you can increase your business’s productivity. Accounting technology can help attract and retain employees, helping them optimize the long hours that come with the work.
Importance of Human Capital Investment
In your business, human capital refers to the economic value of an employee based on their skills, experience and job description. On average, human capital costs are nearly 70% of a business’s operating expenses. Human capital investment involves actively dedicating resources to improve the all-around skills of your employees through several methods, including implementing better accountant technology programs, introducing artificial intelligence into your workflow and encouraging skills development. Here are the benefits of human capital investment:
1. Increase Employee Retention
The cost of hiring a hiring employee exceeds that of keeping one. From recruitment offers to onboarding programs, it can take up to six months for the new hire to get up to speed and deliver effectively on the job role. Several factors that can increase ramp time include an unstructured onboarding process, company culture and getting the right fit.
Employees in companies that foster professional development through in-house training or sponsored educational programs are less likely to look outside the company for job opportunities. In addition, motivating skill development can encourage employees to fill more senior roles in the future, saving time and resources from getting a new hire to adapt to the company’s culture.
2. Boost Your ROI
Human capital investment includes your employees’ salaries, benefits and perks. Hence, you are investing in human capital, whether you understand it or not. Paying attention to the key areas where you can improve will enable you to spend on the right factors that can enhance your work environment’s productivity and optimize your business’s processes, positively impacting your ROI.
Pumping money into human capital without analyzing feedback and areas for improvement is akin to throwing money out of the window. With accounting technology, you can optimize the money you spend on developing your employees, increasing the convenience of flexible work and retaining top talent.
3. Improve Recruitment
An excellent human capital investment enables you to attract and retain employees. With more millennials entering the job market, there is more focus on the company’s flexibility and purpose. Over twenty percent of millennials state that flexibility is a top priority when choosing where to work. Technology plays a significant role in helping accounting firms move to the next level while keeping up with the changing times of the work environment, including working from home.
People are attracted to companies with a human capital plan because it shows the company’s dedication to improving their employees. Accounting technology eliminates data entry and other mundane work, enabling employees to focus on more meaningful work and maximize learning and skill development opportunities.
Benefits of Using Accounting Technology
Sage Intacct is an accounting ERP Solution with features that enable you to track the real-time performance of your business’s workflows and automate significant processes so you don’t spend considerable time entering data on a spreadsheet. From increasing production to driving more optimized workflows, you can easily tailor Sage Intacct to fit perfectly into your work arrangement. Benefits of implementing this cloud accounting software include:
- Optimizing invoice generation
- Automating cash flow management and outreach
- Minimizing repetitive tasks
Maximize Your Human Capital Investment with Sage Intacct
With the right accounting technology, you can maximize your human capital investment, saving costs from replacing employees and improving employee engagement by automating repetitive workflow areas. Intuitive Business Concepts is dedicated to helping businesses move forwards with the right technology. Integrating Sage Intacct into your work environment can attract and retain employees with its cutting-edge accounting technology. Contact us today to learn more about how you can gain insightful feedback to make data-driven decisions that will drive your business forward.
About IBC: At IBC, we have a deep understanding of the critical business needs and processes specific to associations, non-profits, and unions. We ‘get’ your culture, your goals, and what drives you, too. Focused exclusively on and dedicated to delivering the most effective AMS , LMS , and Cloud Financial Software for our clients, we’re well-versed in identifying and applying the integration techniques that will save you time and money. Since 2001, our cutting-edge products, unparalleled responsiveness, and award-winning services have helped organizations like yours increase their operational and financial performance by leveraging best practices and proven solutions. For more information about IBC, please visit the website at www.ibconcepts.com or call 443.603.0215.
