Payroll software can have a negative impact on an organization’s cash flow, risk profile, and employee engagement. If employees are not paid correctly or on time, it can also affect the company’s cash flow. This can lead to lower productivity, which can have a negative impact on business performance.
It is becoming increasingly difficult to keep up with payroll requirements due to the rapid changes in legislation. Companies that are global, or in the process of rebuilding or restructuring, may have to be more aware and adhere to local laws and regulations. Leaders are abandoning outdated payroll processes and turning to cloud solutions to automate complicated processes and reduce risk exposure, so they can concentrate on their value-generating activities. These are five ways technology can be used by organizations to streamline and save time in their payroll processes.
Simpler payroll processes
1. Centralize all your records
It is crucial that employee records are kept current from both a payroll and HR perspective. Payroll teams are not able to use the old processes of scrolling through spreadsheets or going through multiple forms to find the right information. It will save time and decrease the chance of losing important information by storing employee records in one location.
2. Sync HR and Payroll software
Payroll teams can spend a lot of time processing payroll and may use separate systems to manage their data. This can lead to many errors and unnecessary delays. It is possible to integrate your payroll, HR, and time data into one system. This will allow you to reduce reporting time and simplify data management. You can also avoid the “payroll crunch”, which occurs at the end of each pay period. Instead of waiting for batch processing, organizations can view their payroll data immediately.
Employees have a single record for all their payroll, scheduling, performance, and other data. This makes it easier to provide a better experience.
3. Digitize your data
Digitizing payroll data saves time and effort in sorting through paper checks, timesheets, and notes. This can also help save time in other areas such as paying employees and generating reports. It can also be used to deliver key information, such as tax forms, to the workforce. Digital data management will reduce inefficiencies and help to maintain accurate records.
COVID-19 also offers organizations the opportunity to modernize their payroll processes to meet the demands of the new workplace. Payroll teams can reduce disruptions to their operations by digitizing data and information in cloud-based software. They can also pay their employees accurately and on time from remote locations.
4. Facilitate seamless employee experiences and reduce admin work
Traditional payroll and HR professionals handle the paperwork and administration required to update employee records and information. This leaves little time for other projects. According to Deloitte, 60% of employees use mobile apps for self-service. This includes tasks like managing their schedules and viewing their pay. it can take control of their own records with mobile HR and payroll solutions, which will help reduce administrative burden for the in-house payroll staff.
Employees can access their earnings statements from anywhere with mobile HR and payroll software. Employees can view changes to their pay at any point during the pay period. This allows them to get answers to possible payroll-related questions.
On-demand pay is another option that organizations should consider. Employees can access their earned wage at any time during the pay period via a digital account from their mobile device. Employees will appreciate the ability to access their earned wage ahead of payday, which allows them to respond more quickly to unanticipated circumstances and reduce dependence on loans. It also gives them greater control over their finances and provides them with better oversight. Today’s employees want more flexibility in their pay, as many were laid off, furloughed or saw their salaries drop. Organizations have an opportunity to offer more flexible pay options which could lead to lower financial stress and higher productivity.
5. Technology can help you better manage compliance
Many companies lack the necessary talent and resources to meet constantly changing compliance requirements.
It can be time-consuming to understand and apply legislative changes. Many organizations will also need to scale their payroll staff as their business expands or contracts. Finding talent can be a challenge as it is becoming increasingly difficult to find payroll talent. According to Deloitte’s Payroll Benchmarking Survey, it takes an average of four to six months for an organization to hire credentialed payroll talent.
Automating tax calculations can save time, reduce risk and help teams scale faster. Global organizations or those looking to expand into new markets will need to keep up with changes in legislation in different countries and jurisdictions.
These jurisdictions have automated tax rules, which can reduce compliance risk.
Modernized payroll methods can help you uncover efficiencies
Companies that can reduce costly mistakes and inefficiencies, scale their payroll with business growth, empower their employees to manage their pay information, and cut down on errors and inefficiencies can help refocus their talent and resources on other areas. Modernizing your payroll process and switching from batch-driven to real-time cloud payroll software can increase productivity and reduce cycle time.