Charisma HCM optimizes and reduces costs at Alexandrion
From my point of view, an extremely important thing gained through the implementation of Charisma, is the up to date organization chart, and by that I do not mean the image itself, but everyone’s position in the company as cost centers, with a full background
Company
Alexandrion Group Romania is the initiator and leader of the Romanian brandy market with a market share of 41%. The company owns the most modern production lines in South Eastern Europe - an investment of 12 million EUR and with a production capacity of 300,000 9L Cases / month. With a team of 300 employees, out of which 150 people represent the marketing and sales force, the company’s human resources improvement is an ongoing challenge for both the efficiency and optimization of human capital management and costs. What was the solution found by Alexandrion Group Romania to get the desired results, I found out following a conversation with Mrs. Mihaela Ciufecu, Human Resources Legal Director and Responsible.
Situation
Until this spring, Alexandrion Group Romania has been outsourcing the Human Resources to a service provider. However, the company had 2 HR employees that took care of the data collection, entrance into the system and transmission to the supplier, which basically served to complete the task (and submit the payroll to the competent state institutions). The situation was not only consuming time and resources, but also had the disadvantage of generating high costs, compared to the results obtained. In addition, obtaining information was a slow process and sometimes the information was so inaccurate that it needed to be monitored and corrected by the company.
Solution
To rectify this issue, the company conducted a study to identify the best solutions that could be adopted to streamline the HR & Payroll activities and reduce the operational costs. The results showed that an in-house management of the activity, using specialized software would be more profitable and would offer the advantage of keeping these issues under control.
A market research was conducted to identify the appropriate solution considering the system’s flexibility, ease of use and coverage of legislation and specific requirements imposed by the Romanian state reporting system. Another important criterion was the possibility to integrate the solution with SAP accounting and financial management that the company used to ensure data traceability throughout the entire company, not just at the department level.
“We chose Charisma due to the fact that the system was the best answer to our needs. We obviously took into account the quality-price ratio too.” stated Mrs. Ciufecu.
TotalSoft delivered a solution strictly adapted to Alexandrion’s needs, a solution which includes modules specific to human resources, payroll, statements required by the Romanian state, internal and ITM reporting activities. Following the implementation, a single database with centralized information was obtained, eliminating thus the difficult process of obtaining reports on staff, budget, wages, hours worked, time and attendance etc. Porting employee data in Charisma provided the company with a clear and real time picture of each employee’s route throughout the company, despite their department, seniority in the company or position.
“From my point of view, an extremely important thing gained through the implementation of Charisma, is the up to date organization chart, and by that I do not mean the image itself, but everyone’s position in the company as cost centers, with a full background.”
Results
Following the implementation, the HR team gained another member, but the costs at department level have fallen due to the integration activities that were previously shared between the service provider and the HR department. The response time to management requests, redundant activities, payroll and report generation have decreased due to immediate access to information. Also, reports are generated now much faster and the information accuracy has an increased level due to their configurability. The reporting to state institutions is performed directly from the system in the format required by authorities, removing thus the information collection and transmission time consuming activities.
“In addition to significantly reducing the time to obtain all the information needed, we removed the communication gaps between the HR and accounting departments and got a real control over the company’s activity. Overall, implementing Charisma has helped us optimize our entire activity.”