HR Process Optimization

Vivendum Ratio Solutions partnered with a client in the automotive industry to optimize standard HR processes, focusing on personnel administration tasks that created bottlenecks due to high frequency and volume.

Processes that were redesigned during the duration of this project were the basic personnel administration processes, which, due to frequency and volume over time, created bottlenecks and contributed to decreased efficiency of HR activities and legal non-compliance.

The client had inefficient procedures for contract signing, annexes for extensions and salary changes, employment confirmations, and leave decisions, leading to backlogs, delays (up to 30 days), overtime, and legal risks.

Vivendum Ratio Solutions re-designed and optimized key processes:

• Contract signing process blue collar: By granting the proxy for signing contracts to Production Managers and HR ER personnel, the load of signing contract by Technical Plant manager was decreased. Distribution of the workload to Production managers and HR increased the efficiency of signing and distribution of the contracts to new hires on day of employment.
• Annex on employment agreement for extension: With implementation of new employment agreement (Project with the Ministry of labor and social policy), Annexes for extension of employment period were terminated.
• Annex of employment agreement for salary change: With implementation of new employment agreement (Project with the Ministry of labor and social policy), Annexes for salary change were terminated.
• Confirmation of employment (with and without salary info): Issuance of confirmation of salary was optimized by granting proxy to HR payroll and ER personnel to sign the confirmations, instead TPM and CPM.
• Decision of annual leave and unscheduled leave: Decision per employee for annual or unscheduled leave was replaced (Project with the Ministry of labor and social policy) with one single decision for all employees included in the leave plan.

According to the data from 2015, with optimization were targeted processes that make up 95% of the workload of personnel administration. With introduction of new employment agreement and annual and unscheduled leave decision (Project with the Ministry of Labor and social policy) paperwork and workload in personnel administration decreased by 53%. In such manner backlog created due to delayed delivery of contracts (sometimes up to 30days delay in delivery) was eliminated, the process was taken regularly and in accordance with the law. Time for issuance of employment confirmations was decreased to 5 days and backlog eliminated.

The client continues to lead in the automotive industry, with our optimizations as a foundation for HR efficiency.