B OnSite

It is not headcount that burdens HR, but movement

Two plants with 180 staff each can generate very different HR workloads. Administration follows joiners and leavers, not headcount, and the evidence trail is where it breaks.

· 10 min read

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Two plants, 180 people each. The same payroll, the same shift pattern, and in both places one person runs HR administration.

Last year, 14 people turned over at one of them. At the other, 54.

The HR officer at the second plant is constantly behind on deadlines. Management does not understand why: this person handles the same headcount as their colleague at the other site, yet hands in mid-month what should have been ready on the third. Sooner or later someone suggests they may not be organised enough. The explanation is more mundane. They do almost four times the work.

Someone who has worked there for a year adds one line a month to the records. Someone who is just joining produces eight to ten documents before they even put on their work clothes.

The unit of workload is not the head

Almost every company allocates HR cost per head. Yet the volume of administration is set by movement, not by the size of the workforce.

On the Hungarian labour market, the pace of turnover has slowed in recent years. According to a Profession.hu survey, 44 per cent of employers saw greater workforce movement than in the previous year in 2023, 37 per cent in 2024 and 31 per cent in 2025. At the same time, the share of companies where headcount did not move at all rose to 31 per cent. The market has pulled apart: at roughly one company in three movement has stopped, while at roughly one in three it has kept growing.

Where it has not stopped, it is worth looking at the order of magnitude. According to an expert at an HR services firm, annual turnover of 5-6 per cent is still acceptable, while 20-25 per cent already signals a problem.

Let us convert that into administration. At a company of 180 people, 8 per cent turnover means roughly 14 pairs of joining and leaving events a year, and 30 per cent means 54. Suppose that assembling, signing and filing a full onboarding pack takes two and a half hours, and an exit takes one. Then the first company spends 49 working hours a year on this, the second 189.

The same headcount. The same one-person HR.

What a single new hire generates

The pile of paper is not arbitrary. Behind every item there is a legal obligation, and the obligation is not to produce the document, but to be able to prove compliance at any time.

Under Section 134 of the Hungarian Labour Code (Act I of 2012, Mt.), the employer must keep records of the duration of regular and overtime working hours, stand-by time and leave. The records must show, up to date, the start and end times of working hours and stand-by. The law prescribes no particular form, so records may be kept electronically, but according to case law they must be objective, verifiable and authentic. The employee may be involved in keeping the records, but a sheet kept by the employee is valid only if the employer or a person authorised by the employer has countersigned it.

Section 55 of Act XCIII of 1993 on Occupational Safety and Health (Mvt.) requires training when a person starts work, when a workplace or job changes, when the requirements for safe working change, when work equipment is modified or new equipment is put into service, and when new technology is introduced. The completion of the training must be recorded in writing, stating the subject matter and bearing the signatures of the participants. The obligation applies to every employer regardless of headcount; for computer-based office work and remote work, the training due on starting work or changing jobs can be fulfilled by handing over the general curriculum published by the minister.

Onboarding documentation is therefore not a single event. It is a chain that runs for the whole duration of the employment, and for every link in it the same evidence counts: the signature.

The damage is not done at the filling-in

Paper-based handling is usually defended by saying that filling it in is quick. That is true. The problem lies at the other two points of the chain.

One is authentication. An occupational safety training that was held but not signed can hardly be proven by the employer during an inspection or in court. If neither the attendance sheet nor the work schedule shows the start and finish times of work, the records do not meet the requirement. A missing signature is not a formal defect. It is missing evidence.

The other is retrieval. A document is usually not taken out when it is created, but two years later. During an inspection, the authority compares the working time records with other records: the work schedule, the leave register, payroll, even the guard log. With high turnover this is where paper tends to fail, because the leavers' files are already archived and nobody has made up the gap.

The stakes have been higher since 1 March 2024. The occupational safety fine imposed for seriously endangering employees has a base amount of HUF 100,000 per seriously endangered employee and can range from HUF 100,000 to HUF 100 million (at most HUF 25 million for micro and small enterprises, HUF 50 million for medium-sized ones, although this relief does not apply where a fatal accident occurred). The minimum labour fine imposed by the employment supervision authority rose from HUF 30,000 to HUF 150,000, and its upper limit is HUF 20 million for a medium-sized company and HUF 25 million for employers with more than 249 staff.

There is a quieter risk too. If the employer fails to meet its record-keeping obligation and cannot produce the documentation in a labour court case, the court determines the hours worked and the extent of overtime through evidentiary proceedings, at its discretion. A missing document is therefore not a neutral state: the evidentiary disadvantage falls on the party that was required to keep the records.

The three layers of the burden

When a company tries to estimate the cost of paper-based administration, it usually sees only the first layer.

HR working hours are the easiest to measure and the smallest item: assembling the onboarding pack, collecting signatures, filing, compiling the monthly attendance sheets, preparing payroll.

Manager and supervisor time is booked nowhere. It includes the supervisor getting the training sheet signed at the start of a shift, the team leader filling in a missing entry, and the site manager searching for a folder for half an hour. With high turnover this layer is usually larger than HR's, because it is made up of a little time from many people, and for that very reason nobody notices it.

The risk cost is not a regular expense but an expected value: the probability of a fine multiplied by its size, plus the evidentiary disadvantage borne in labour court cases.

The three layers behave differently. The first grows linearly with movement. The second grows faster, because making up for a gap and searching are always more expensive than recording it the first time. The third stays at zero for a long time, then appears all at once.

Record it where the data is created

Replacing paper does not solve anything by itself. An Excel sheet into which HR types the same data still runs through a single person, only faster.

What makes the difference is who enters the data. If the employee reports their own start of work, uploads the requested documents themselves and confirms their own monthly hours, HR's role changes from data entry to verification. The amount of work does not disappear, but moves to where each person's share is a few minutes. With occupational safety training this is even sharper: if the employee completes it on their own screen and confirms it there, the completion and the evidence of it arise at the same moment, not two weeks apart.

In B OnSite, this principle is implemented by the Employee Portal. The employee gets their own interface: they clock in and out, upload the documents requested from them, see their own working hours and confirm them. The data and its confirmation arise in a single step, with a timestamp, and HR looks at what is missing.

The limit is worth stating too. Self-service recording works if the workforce has smartphones and if the onboarding training covers use of the interface. Where that is not the case, the system does not solve the problem, it only moves it. The first weeks of an implementation are therefore never about the software.

Five questions before anyone chooses a system

A system is worth buying only once the company understands its own workload. The five questions below can be answered in an afternoon.

  • How many joining and leaving events were there last year? Not the closing headcount, but the number of movements.
  • How many working hours does the full administration of one new hire take, from HR to the supervisor? Measure it on a single new joiner, with a clock.
  • How long does it take to find the occupational safety training sheet of an employee who left two years ago? If more than ten minutes, it will not be there during an inspection.
  • Is there a month for which the attendance sheet is not signed by both parties? Three samples are enough to find out.
  • If a labour inspection arrived tomorrow, which document would we search for the longest?

The answer to the fifth question shows where the problem is more precisely than any survey.

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