Department of labor and wages: functions and tasks

The need to create a department of labor and wages (OH&S) does not arise at every enterprise and not immediately. How to determine the degree of need for creating a new structure, what tasks should be solved in the process of construction and work of this department?

Can I replace it?

Often, the health and safety functions are distributed between the personnel department and accounting. Many start-up 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 sooner or later. Therefore, it is very important to organize the work correctly from the very beginning.

Why create a department

We will decide on the tasks of the created department. As in any management structure, they must solve 4 management tasks and be formulated on the basis of them.

Analysis:

• determination of the direction for improving systems and forms of bonus and remuneration;
• improvement of standardization systems through analysis of existing at the enterprise.

Planning:

• planning of all components of the labor process and wages;
• determination of the profitability of the use of labor resources.

Organization:

• organizational measures for the construction of labor processes and the systematization of wages;
• creation and implementation of systems and forms of stimulation and motivation;
• management of staff costs.

The control:

• budget spending;
• over compliance with legal regulations.

Examples are taken from the Regulations on the organization of health 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. Rationing of labor.
2. Work 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 prescribed functionality. It is determined based on the features of the structure, production and administrative processes in your company.

As a basis, you can take an approximate functional OTiZ.

Labor rationing:

• development and implementation of labor cost norms in all sectors of production and the enterprise as a whole, as well as their structuring at the levels of all divisions, departments;
• analysis of the quality and effectiveness of the implemented standards and regulations;
• control over the implementation of norms and standards.

Labour Organization:

• the development of rational forms of remuneration and operating modes;
• development of a system to increase the efficiency of the use of working time;
• control over the implementation of staff discipline.

Organization of wages:

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

Mode and conditions of work and rest:

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

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

Department within the enterprise

Tasks and functionality are defined. But for their implementation, it will not be superfluous to clearly think over the processes of interaction between the labor department and wages in the enterprise with other departments. Deciding what to whom and who owes is better “ashore” - this will help to avoid conflicts, intersection of functionality and conflict of interests

Department Building

You need to start work from the main thing, determine who will solve the tasks and perform the necessary functionality. As noted earlier, they can be distributed between existing units and specialists - human resources and accounting. In this case, the job descriptions will be expanded to additional functionality, and the combination of posts is drawn up properly.

The second option is to outsource a specialized company.

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 drawn up as a separate document - the Regulation on the Department of Labor and Wages.

In this case, it is necessary to determine the number of employees and structure. Based on the number of employees and the specifics of the company, calculate the staff needed for the labor department and employee wages. 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 be composed of structural units, if their need is dictated by the scope of the proposed work. For instance:

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

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

How to choose employees

Requirements for candidates for occupational health and safety posts are determined by functionality.

In the position of leader, preference is given to specialized vocational education - economic. Mandatory full higher education (master, specialist), passing training programs and additional professional retraining in the direction of rationing and remuneration. Work experience in a large enterprise (from 200 people, as a rule) is also required.

Knowledge and experience of practical application in the following areas are required: legislative, legal and regulatory acts; labor legislation of the Russian Federation; labor economics; qualification characteristics of professions; methods for organizing labor; the procedure for developing wage and labor plans; charging systems; best practices of organization, motivation and personnel management.

Other department employees are selected on the same principle.

Department Performance Indicators

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 criteria for the effectiveness of the work of the department of labor organization and wages. To develop and approve such criteria is necessary, based on the strategic plans of the enterprise. One of the options for performance indicators (you need to digitize based on your plans):

1. Increase in the share of skilled labor by optimizing the total number of staff.
2. Competitive salary (measured through staff turnover indicators).
3. Deviation of the average number of employees from the planned.
4. Deviation of payroll from the budget.
5. FMP deviation from the budget.
6. Labor productivity.

P.S

Today in the legislation of the Russian Federation there are no normative documents with a clear definition of what the department of labor and wages should be. This means that there is an opportunity to create a structure that is maximally relevant to the specifics of your enterprise.