Department of labor and wages: functions and tasks

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The need to create a department of labor and wages (OTiZ) does not arise at every enterprise and not immediately. How to determine the degree of need to create a new structure, what tasks should be solved in the process of building and operating this department?

Can I replace?

Often OH&S functionality is shared between HR and accounting. Many aspiring entrepreneurs do not see the benefit of creating an additional structure. This is explained by the low number of staff and the small scale of the enterprise. But the tasks solved by the forces of this department are very specific. The need for such specialists will appear sooner or later. Therefore, it is very important to organize the work correctly from the very beginning.

Why create a department

Let's define the tasks of the created department. As in any management structure, they must solve 4 management tasks and be formulated based on them.

Analysis:

• determining the direction for improving systems and forms of bonuses and remuneration;
• improvement of rationing systems through analysis of existing ones at the enterprise.

Planning:

• planning all components of the labor and wage process;
• determining the profitability of the use of labor resources.

Organization:

• organizational measures to build labor processes and systematize wages;
• creation and implementation of systems and forms of incentives and motivation;
• personnel cost management.

Control:

• budget spending;
• compliance with laws.

Examples are taken from the Regulations on the organization of he alth and safety of various enterprises, they contain the main points that deserve attention. All these tasks of the department of labor and wages can be divided into three areas:

1. Labor rationing.
2. Working with the budget at all stages.
3. Legislative component.

A specific list and wording is selected for each enterprise, taking into account the specifics.

What is the work of the department

Effective problem solving is impossible without carefully written functionality. It is determined based on the features of the structure, production and administrative processes in your company.

As a basis, you can take the approximate functionality of OTiZ.

Labor rationing:

• development and implementation of labor cost standards for allareas of production and the enterprise as a whole, as well as structuring them at the levels of all divisions, departments;
• analysis of the quality and effectiveness of the implemented norms and regulations;
• monitoring the implementation of norms and regulations.

Work organization:

• development of rational forms of remuneration and work modes;
• development of a system to improve the efficiency of the use of working time;
• control over the implementation of regular discipline.

Payroll organization:

• improving the norms and remuneration systems adopted at the enterprise (SOT);
• create incentive and bonus provisions;
• control over the appropriate application of tariff rates, surcharges, coefficients, surcharges;
• development of a grading system.

Mode and conditions of work and rest:

• development and planning of the production calendar;
• introduction of optimal modern modes of work and rest;
• introduction of a system of rational, from a modern point of view, labor organization.

From this example, you can choose the most suitable ones, or create your own list based on it and determine what functions the labor and wages department will perform.

Department within the enterprise

The tasks and functionality are defined. But for their implementation, it will not be superfluous to clearly consider the processes of interaction between the department of labor and wages at the enterprise with other departments. Decide what to whom and who owesbetter "on the shore" - this will help to avoid conflicts, intersection of functionality and conflict of interests

Accounting
Provides	Receives
actual payroll data	FMP use plan
data on spending the budget of the material incentive fund (FIF)	provisions on bonuses from the payroll and FMP
data on payments in excess of payroll

Functional departments
Provide	Receive
reasonable norms for spending time	labor advice
SHR project	bonus provisions
work rationalization action plan	approved by SR

Planning and economic department
Provides	Receives
targets set at the enterprise for the year, quarter, broken down by months	approved by SR
all adjustments and plan changes	calculation of labor cost rates

Building a department

It is necessary to start work with the main thing, to determine who will solve the tasks and perform the necessary functionality. As noted earlier, they can be distributed among existing units and specialists - the personnel department and accounting. In this case, job descriptions willextended to additional functionality, and the combination of positions is formalized properly.

The second option is to attract a specialized company on an outsourcing basis.

If the scale of the enterprise is significant, and there are large production units, then the best way to solve the problem is to create your own department. This is documented in a separate document - the Regulations on the Department of Labor and Wages.

In this case, it is necessary to decide on the number of employees and the structure. Based on the number of employees and the specifics of the company, calculate the staff required for the labor department and wages of employees. The head of the department is appointed by order and is subordinate to one of the top managers of the company.

The department of labor and wages may include structural units, if their need is dictated by the amount of proposed work. For example:

• labor organization group;
• normalization group;
• planning group;
• project management team.

The distribution of functionality between departments is carried out by the head of the department.

How to choose employees

Requirements for candidates for OH&S positions are functional.

In the position of a manager, preference is given to profile vocational education - economics. A complete higher education (Master, Specialist), advanced training programs and additional professional education are required.retraining in the direction of rationing and remuneration. Experience in a large enterprise (from 200 people, as a rule) is also required.

Knowledge and experience of practical application is required in the following areas: legislative, legal and regulatory acts; labor legislation of the Russian Federation; labor economics; qualification characteristics of professions; labor organization methods; the procedure for developing plans for wages and labor; billing systems; best practices in organizing, motivating and managing personnel.

Other employees of the department are selected in the same way.

Department Performance

So that the created structure does not become a useless ballast, just an additional link in the document flow chain in the company, it is necessary to determine the performance criteria for the work organization and wages department. It is necessary to develop and approve such criteria based on the strategic plans of the enterprise. One of the options for performance indicators (you need to digitize taking into account your plans):

1. Increasing the share of skilled labor by optimizing the total headcount.
2. Competitive salary levels (assessed through employee turnover rates).
3. Deviation of the average number of employees from the planned one.
4. POT deviation from the budget.
5. FMP deviation from the budget.
6. Labor productivity.

PS

To date, the legislation of the Russian Federation has no regulatorydocuments with a clear definition of what the department of labor and wages should be. This means that it is possible to create a structure that best suits the specifics of your enterprise.