Dealing with HR records compliance in the Philippine BPO sector
Large Headcount and Turnover
It is a known fact in the Philippine BPO industry that high-employee turnover is a continous challenge. Multiply that by large employee headcounts it becomes almost untenable.
Customers of BPO companies from more industrialized nations demand compliance to record keeping to deal with their country's regulatory agencies. These compliance parameters are usually part of their contracts and service level agreements (SLAs).
Here are some of issues that currently face the men and women working in Human Resources and Finance teams in the BPO sector.
Very High Costs
Managing records is a very tedious task that involves sorting, filing, retrieval and storage. Each of these tasks come with a price tag associated with the labor required to do it.
An even larger cost is the time spent by management personnel collating required information month-on-month.
Keeping files at offices cost money, space requirements for storing documents are quite substantial. Each employee in the BPO sector would have about 15-20 documents each having 3-5 pages on average each, that would be in the order 75-100 pages of records per employee. But what makes it really expensive is the prescribed retention periods. Record of clearances, contributions and employment contracts (see: Typical Records ) need to be retained for at least 10 years.
- Police Clearance
- NBI Clearance
- BIR tax contributions and withholding certificates
- SSS, Philhealth and Pag-Ibig contributions and withholding certificates
- Employment Contracts
- Waivers and other policy acceptance documents
Data Privacy and Accountability
Recently the Philippine government has started to enforce the Data Privacy Act of the Philippines. Wherein it states that companies dealing with any Personally Identifiable Information (PII) would need to in summary;
- Assign a privacy administrator
- Institute protection mechanisms against breaches.
- Be accountable for data privacy.
- For more information click here
End to End Solution
Dealing with all these challenges would require multiple components in order to streamline and cut costs. These components are;
- A Document Management System with data-mining and integration capabilities to connect to existing HRIS (Human Resources Information Systems) and Finance systems.
- Imaging Services (To digitize paper records)
- Records Management Facility (to store paper records at lower costs)
- Or outsource