Human Resource Development (HRD) is a department that deals with the management of a company’s resources. The HR team is also required to be able to make an annual HRD report as a form of accountability in one period.
However, did you know that HRD tasks are not only limited to recruitment? Actually HRD Human Resource Development also has various other tasks which cover all aspects that are closely related to employee sustainability.
HRD at a glance
HRD stands for Human Resource Development. HRD itself can be interpreted as human resource management . Human resources or employees are also one of the most important assets in a company. Therefore, a special division is needed to manage it, namely HRD (Human Resource Development).
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HRD is an important component of any business, regardless of the size of the company. HRD is also tasked with maximizing employee productivity and protecting the company from any problems that may arise in the workforce.
HRD’s own responsibilities include compensation and benefits, hiring, dismissal, as well as always following laws that may affect employees and their company. Sometimes, HRD is also referred to as personnel.
However, in some companies, the role of the personnel sector itself is not the same as HRD. In terms of responsibility, the scope of personnel is usually less than that of HRD.
Personnel also focuses on administrative management, such as databases, payroll software , attendance, document filling, and so on.
Meanwhile, HRD has bigger responsibilities when compared to personnel. Some examples are training, general affairs , recruitment and selection, HR planning, career development, and making SOPs.
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Main Duties of HRD
After knowing the types of HRD functions, we also need to know about the main functions of HRD. Following are the main functions of HRD.
1. Compensation and Benefits
Issues that are quite important in the company include providing compensation and providing various benefits for employees. When designing a compensation program, what is considered starts from employee wages, insurance programs, and benefits or benefits.
Not only designing but also managing schemes and managing distribution procedures. However, it should be noted that compensation and benefits are provided subject to the provisions of the applicable law. Because, this is quite sensitive in the corporate world.
2. Manage Relations Between Employees
The task of HRD is to take part in building good relations between employees. HRD itself tries to create activities that can help get to know employees better, personally or professionally.
This method will encourage healthy and balanced good relations between employees and other positions in a workplace. Including one of the keys to the success of the company.
3. Collecting Administration
One of the tasks of HRD is to collect administrative data. The administration in question is employee data, payroll, payments to other employees, to the work contract system. Employee administration can be accessed easily through the hris application .
This data is the task of personnel, but from a personnel perspective it is part of HRD (Human Resource Development).
Personnel will also be very helpful and lighten the work of HRD because it can reduce labor costs, motivate employees, and increase profits.
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4. Orientation
The next HRD duties and responsibilities are orientation or preparing new employees. However, not all of these tasks are performed by the company. Even though this is also a basic step to help new employees and adjust to co-workers, managers, offices, and work.
HRD is tasked with intensively introducing tasks, department functions, the relationship between positions and job descriptions. That way, employees are expected to play an active role in the company.
5. Make Correct HR Reports
Just as the finance division must provide financial reports, HRD must also provide HRD reports related to the management of company human resources. With this report, the company can evaluate and improve the company.
In addition, the company can also make a decision whether to add employees or not to increase the company’s growth.
Functions of HRD Reports
Before entering into making reports, we should first understand the function of HR Reports. There are more or less three functions that can be described, namely:
1. HR Monitoring
Generic reports allow HR to stay up to date with the work rhythm of the organization. The trick is to track employee performance metrics. New trends as well as other opportunities can be recognized more quickly and potential problems can be resolved before they develop into something serious.
2. Information management
An HR Report can help managers to complete their work better. This report is able to show relevant developments about the team and its department. When, for example, the marketing department is struggling with reduced headcount and tight recruitment times, the manager can swiftly address these problems as soon as the employee leaves.
3. Trace problem areas
HR reports also offer a way out for tracking core problem areas in a transparent manner. This transparency will motivate managers to pay closer attention so that the company’s reputation can be maintained.
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How to Make an Effective HR Report
Moving on from these three functions, how do you make an HR Report? The first thing that must be determined is to start with the choice: do you want it automatically or manually?
Many organizations still use ad-hoc reporting data. To illustrate: when a manager wants to know about an employee’s performance, he will ask HR to send the report. After receiving this request, HR will prepare the requested report from the collected files. This is an example of creating a manual report. If you want to move faster, you should use an automatic system.
After solving the problem of automatic or manual selection, the following are the characteristics that must be present in the HR Report. It contains several important metrics that must be included in the report.
Also note that most of the metrics below are high-level metrics that require an organization/company summary.
- Seniority: the level of seniority in the organizational structure of the company
- Gender: this division is used for diversity purposes
- Age: age matters with this era’s performance type. Age is often the key to the focal point of an organization oriented towards innovation and realignment.
- Level of education: education level should be listed if available and if it is relevant to the objectives to be achieved by the organization.
- Function type: a metric such as function type cluster can differentiate groups within a company. For example: main management, middle management, production personnel, and auxiliary staff.
- FTE: stands for Full-Time Equivalent, is the number of hours worked by employees on a full-time basis. The number of FTEs is generally lower than the total number of employees. This statement is relevant if there are many part-time workers in the company. FTE provides accurate data on the number of jobs within the company.
- Active employees: this metric represents the number of workers working in the company.
Attrition: this metric represents the number or percentage of the number of employees who were reduced in the previous period. - New employees: this metric represents the number or percentage of new employees who joined in the previous period.
- Absenteeism: this metric represents the percentage of time that the employee was absent in the previous period (in average). Can also be calculated based on the number of days absent.
- Cost of absences: this metric is not a standard type, but it can help make the previous point appear more realistic by including financial data.
- Labor costs: these costs include the amount of money that must be spent by the company to pay for the work performed. This includes worker benefits and payroll taxes.
- Training costs: these costs represent the total amount that must be spent by the company to train new employees and existing employees.
- Recruitment costs: these costs cover recruitment efforts, including fees for outside agents when hiring third parties, advertising costs; and sometimes the cost of lost productivity.
- Fulfillment time: this contains the number of days a position was opened until a candidate finally accepted the position. Each type of job has a different fulfillment time, depending on the level of work difficulty.
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Types of HRD Reports
Then what are the types of reports that need to be made by the company’s HRD? Come on, let’s just discuss it together.
1. Employee Absenteeism Report
The first type of HRD report that needs to be made is an employee attendance report. This report contains employee attendance data that can be used as a basis for paying an employee’s salary or benefits.
Not only that, online employee attendance reports are important to do because they are the basis of KPI (key performance indicators) in measuring the employee’s performance.
2. Employee Leave Report
Leave is an employee right regulated in Law No. 13 of 2003 concerning employment. Article 79 states that employers are obliged to give rest and leave to workers/laborers.
For annual leave, the company must provide at least 12 (twelve) working days of leave after the worker/laborer concerned has worked continuously for 12 (twelve) months. Leave reports need to be made so that the company can find out the remaining leave of its employees.
3. Report on Sick Permit and Absent Permission
Sick leave is different from leave, therefore HRD must make a separate one. Why? Because employees who do not work due to illness and accompanied by strong evidence are entitled to their daily wages in accordance with the provisions of Law no. 13 of 2003 concerning employment.
Article 79 states that companies have the right not to pay wages to workers or employees if the employee does not carry out his duties and work.
However, the second sentence explains that the company is obliged to continue to provide wages to employees if:
- The employee is sick so he can’t do his job
- Employees on the first and second day of their menstrual period so they cannot do work
- Employees marry, marry, circumcise children, baptize children, wife gives birth, wife miscarries, and family members from the same house die
- Employees cannot carry out their work because they carry out their religious obligations
- Jobs that have been promised but the employer does not hire them because of the employer’s or company’s mistake
- Carry out educational tasks from the company
4. Employee Salary Report
The next HRD report is the employee salary report . This is important from the side of the company’s financial management which can affect recruitment and budgeting policies.
Because companies not only need to make salary payments to their employees, but also have to pay their employee income taxes to the state.
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Why Does HRD Need to Make a Report?
There are 6 main reasons why company HRD needs to make regular reports. The presentation of employee data in the prepared report can provide an estimate of the risks posed by human resources.
The following explains 6 reasons why company HRD needs to make a report.
1. Problem Identification
The first reason is that HRD reports can identify employee turnover and retention problems. HRD can analyze existing problems and find solutions to reduce employee turnover and increase retention of competent employees.
Why is employee retention important for a company? Because if the company recruits new employees, generally the company will conduct training, provide orientation to the policies and rules that exist in the company. Of course this requires more time for the adjustment phase.
2. Information Management
HRD reports that are made either monthly or annual reports will give the company insight or an in-depth understanding of ongoing developments and potential risks that may arise in the management of human resources.
The risk in question could be, for example, the length of time it takes to change the employee process when the employee is about to resign which can cause a vacancy in a job position.
3. Monitoring
The company will be assisted by reports made to detect risks that may be posed by employees by monitoring and resolving these problems before they have a negative impact on the company.
4. Effective Planning
The reports generated can be used as a reference for planning the company’s strategy starting from the recruitment process to increasing competency and employee participation in efforts to increase company growth.
Important Data on Making HRD Reports
To be able to provide clear information as a whole, reports that are made must have measurable indicators and data. The following are important indicators and data for making HRD reports.
1. Cost per Hire
Cost per hire is the cost required by the company to find and recruit competent employees. This cost is not only seen from the salary given, but also the cost of recruitment and training in order to increase employee competency.
2. Recruitment Conversion Rate
A high recruitment conversion rate indicates the best way to recruit employees. The point is that companies are trying to find the best way or method to find employees who have potential and competence at the lowest possible cost.
3. Turnover Rate
This indicator shows how much potential employees leave the company. If a company has a high turnover rate, it is certain that there are problems in managing its human resources.
What must be avoided and prevented is the release of potential and competent employees who can have a positive impact on the company.
4. Time to Fill
This shows how long it takes HRD to find new employees who fit the company’s criteria.
5. Overtime Hours
This data shows how much the employee’s workload is. Not only that, this data can also show the dedication and integrity of employees in completing the tasks and responsibilities given.
But on the other hand , high overtime hours can also indicate something is wrong. For example, giving excessive work volume can reduce employee motivation which can lead to the employee leaving the company.
6. Training Fees
How much training costs incurred by the company compared to the results or real benefits obtained from the training. If it is felt that training is less efficient, companies can look for new methods or training to improve employee competence.
It could also be that the company decides to completely abolish the training, if it is deemed not to produce the expected results.
7. Ratio Between Male and Female Employees
This indicator measures the level of employee diversity within the company, whether the recruitment process has gender prejudice issues.
Gender prejudice in the current era should be avoided by every company, considering that it can increase the possibility of companies recruiting competent employees compared to companies that only favor one gender over the other.
8. Average Term of Stay of Employees
This data shows how long employees will last in a company, so the company can predict the possibility of reducing employees.
The longer a competent employee stays, the greater the return on investment the company gets from these employees.
To manage your company’s human resources, you can try using the Mekari application, which makes it easier for you to monitor employees anytime and anywhere.
To do employee attendance, you only need to take a selfie and the attendance data will be recorded digitally and stored on a cloud-based server.
With the fake ID detection feature, biometric face recognition, and accurate geo-tagging technology, you don’t need to worry anymore that attendance manipulation will occur in your company.