The Real Cost Of Outdated HR to Australian Mining Companies
In the fast-evolving landscape of business technology, it's surprising that some of Australia’s largest workforces are still juggling with outdated handwritten timesheets and manual HR practices. These archaic tools not only slow down the payroll process but also leave organisations wide open to errors and time theft.
Most deskless industries are embracing digital time and attendance HR software and reaping the benefits of centralised, automated and visible payroll and HR practices. But amidst this rapid cross-industry uptake of technology, there’s one rapid transformation, there's one sector that’s dragging its feet—the mining industry.
In this article, we examine why one of Australia’s biggest employers is falling behind in the race to embrace modern HR tech and its impact on mining companies’ bottom lines.
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Why is the mining sector falling behind?
Mining businesses are constantly developing new technology to streamline production and management of resources and maximise output – but this same thirst for innovation isn’t reflected across mining HR departments. However, research shows it's not necessarily through a lack of trying, or a lack of awareness that the mining industry is lagging behind. HR teams are well aware of the benefits of people management software, but a lack of buy-in from senior management often holds back progress.
Changing HR roles in mining: from administrative to strategic
The role of HR in Australian mining has undergone rapid transformation, transcending the confines of traditional administration-based activities and emerging as a strategic powerhouse, steering the industry towards a future of efficiency, productivity, and employee engagement.
With changing employee expectations and an ageing workforce, HR professionals need to keep up with other deskless industries in order to attract, retain and train competent talent to meet the mining sector's future demands.
The cost and impacts of outdated HR processes
The real cost and impacts of not embracing new technology are more than a matter of frustration or extra paperwork. Using outdated HR processes can increase costs, decrease efficiency, leave companies open to compliance risks, and negatively impact employee satisfaction and business performance.
Costs
- Inefficiency. Outdated HR processes often involve manual tasks and paper-based workflows, leading to slow and inefficient operations. Each step, from filling out paperwork to obtaining approvals, is a laborious and time-consuming process, prone to errors and delays. Retrieving or sharing critical information becomes a logistical challenge, stifling collaboration and hindering quick decision-making.
- Human Error. Human error can occur at any stage of this manual process, whether mistyping hours worked, misreading dates, or misinterpreting handwriting. In attendance tracking, errors can skew productivity metrics, impeding informed decision-making about workforce optimisation. As for employee records, discrepancies could affect benefits, promotions, and even legal matters, and time spent rectifying these errors compounds the inefficiencies in the already cumbersome manual processes.
- Time Wastage. Manual processes require more time and resources, diverting HR staff from focusing on strategic initiatives. The resource drain isn't limited to time alone. Consider the cost implications of the physical resources required for manual processes—paper, printing, storage, and the manpower dedicated to managing and maintaining physical records.
- Compliance Risks. Labour laws are not static; they change, adapt, and multiply in response to societal shifts, technological advancements, and economic circumstances. Failure to adapt HR systems accordingly can result in critical gaps in compliance which could include issues related to overtime calculations, leave entitlements, workplace safety protocols, data privacy and more.
- Limited Analytics. The ability to extract actionable insights from HR data is paramount for making informed, strategic decisions. HR analytics can unveil invaluable insights about workforce performance, employee engagement, turnover rates, talent acquisition costs, etc.
Impacts
- Employee Frustration, Poor Employee Experience and Higher Turnover Rates. Slow and error-prone processes can frustrate employees, decreasing morale and engagement. Outdated processes can also negatively impact the overall employee experience, affecting recruitment, retention, and satisfaction. From onboarding to accurate pay and leave processes, if HR processes are time-consuming, confusing or inaccurate, they can add to employee frustration and contribute to dissatisfaction.
- Missed Opportunities. Inadequate data analysis due to outdated systems can result in missed opportunities for talent development and business improvement. Advanced HR Management software can help HR departments be more strategic and add value across the organisation. Meanwhile, HR decisions based on outdated or incomplete data may not align with the organisation's needs and goals.
- Inaccurate Pay. Manual payroll processes often lead to staff being underpaid or overpaid through mistakes like data entry errors, typos and human error. Overtime pay is often accidentally or intentionally overlooked, with things like buddy clocking easier when there is a lack of visibility. In contrast, automation allows for accurate and efficient time recording, which ensures workers are paid what they’re owed while reducing HR staff admin requirements by connecting time worked trackers to payroll.
A guide to achieving executive buy-in on new HR software
The integration of digital systems into HR processes brings a wave of transformation, enhancing efficiency, accuracy, and overall productivity that extend far beyond the HR department. By leveraging HR software, mining companies can catch up to other deskless industries and ensure strict compliance with contractual pay and conditions, minimising errors and potential legal issues while enjoying the significant time savings, strategic potential and sustainable progress it offers.
The key to implementing new HR systems is obtaining executive buy-in. In the whitepaper below we provide a deep dive on the benefits of HR software and provide practical advice on pitching to management.
Download the Whitepaper to learn more.
