Employees can go through a variety of status changes. Over time, a single worker may transform from a contractor to a full-time employee or vice versa. Other status changes like going on a sabbatical or parental leave may apply as well. These are important to keep tabs on for both regulatory and operational reasons, and digital tools can help your organization do so.
Why Is Tracking Employee Status Changes Important?
Tracking an employee’s status is important for several reasons. One is that employees of different statuses may be eligible (or ineligible) for different benefits. For instance, depending on the organization, a full-time employee may accrue paid time off more quickly than a part-time employee, and a contractor may accrue none at all. Another relevant consideration is compliance with the Fair Labor Standards Act overtime rule. Likewise, obeying the rules of the Affordable Care Act, the Employee Retirement Income Security Acts, and the Family & Medical Leave Act requires a careful grasp on how employees are classified.
Along with regulatory compliance, status tracking is also helpful for business operations applications, like monitoring if an employee is taking a leave of absence or departing for parental leave. Circumstances like that may signal a need for added resources until the employee returns. Additionally, certain employee-status tracking tools can keep HR professionals up to date on contact information, such as if an employee’s mailing address changes. That can be valuable when it comes time to mail out tax or benefits information. On a broader level, getting a snapshot of employees’ statuses can help HR professionals and executives get a view of how human capital is deployed throughout the company.
Analyzing the trends and understanding the reasons for any changes if they happen timely will help address the situations in the context of the real world. On the other hand, missing this analysis can lead to disconnect between employees and business.
How Can My Organization Track Employee Status Changes?
Digital tools are invaluable if your organization wants to stay ahead of the statuses of its employees. For example, pre-built modifiable reports that make use of Oracle’s Human Capital Management software can illuminate information on changes in work assignments, work and home location, pay changes, and other data.
Because these all-inclusive HCM reports can be generated for specific date ranges, it’s easy to hone in on the information needed for a specific task. Overall, they’re a great way to help your organization keep tabs on its employees’ status changes.
Learn More About HCM Extracts and Pre-Built Reports by DataTerrain
To learn more about how reports can assist in tracking employee status changes and in other business-critical duties, please contact us at DataTerrain.