Benefits Of Automated Payroll Software
2 Sep 2020
As payroll processes continue to evolve over the years, more organisations are shifting away from manual payroll processes to automated payroll software and cloud platforms. This shift improves the effectiveness of payroll and benefits, which are critical factors in employee retention and morale.
Below are some ways in which payroll automation is changing how organisations operate.
Saves time and minimizes operating costs
Automating repetitive tasks such as issuance of payslips and initiation of payments can significantly free up time for payroll professionals. The adoption of payroll software can also reduce the time spent on re-computing when there are statutory changes, making regulatory compliance easier. This eliminates human errors and provides greater visibility to ensure payments are made on time, reducing the operating costs of managing data manually and minimizing costly errors for the organisation. With automated payroll software, transactions can be kept up-to-date and processed automatically, promoting efficient payroll management.
Automated data validation ensures efficiency and payroll accuracy
Manually checking and validating throngs of spreadsheets can be time consuming and may result in a high degree of human error. With the use of automated systems, not only does it help to streamline payroll operations, data validation becomes much faster and accurate. Through these automated solutions, large amount of data can be seamlessly integrated into a single platform. Such system algorithms can also run multiple levels of validation to identify and correct errors or problems beforehand. This saves payroll managers the hassle of having to review large amount of data from multiple sources while ensuring data payroll accuracy.
Ease of tracking for organisations and employees
Payroll automation can benefit both organisations and employees. For organisations with a large employee headcount, it is essential to implement a centralized system that efficiently records and tracks information such as attendance, leave balance and expense reports. This helps organizations make informed decisions and track business performance efficiently.
Online payroll software can also provide self service functions that allow employees to view and update their details directly in the database. When there are new hires or resignations, their details can also be easily updated in the database. This can help HR functions eliminate the need for paperwork and allow them to manage information seamlessly from anywhere.
Local laws and compliance with the help of automated payroll software
Depending on the existing infrastructure, there are a few considerations when implementing new processes in any organization. Although in-house payroll systems can provide organizations efficient ways to process payroll, it can be expensive to implement and maintain. Time will also have to be spent to retrain staff and ensure there are the right skillsets available to operate the software. Organizations operating globally with various independent payroll operations in each country may find this transition to be a challenging one. Hence it is crucial for organizations to review their existing processes and consider the local legislations in order to develop a strategy and find a suitable software that can help optimize their payroll operations.
Ensuring data protection and employee confidentiality
Data security has always been critical issue globally. Especially with the introduction of Europe’s GDPR, this has sparked a greater need for data protection and compliance. Therefore before making any transition to an automated payroll software, organizations should assess their operations for handling employee data and ensure there are security measures in place such as firewalls and backup storages. Organizations should also adopt authentication-based tools and ensure data is accessible to authorized personnel only to avoid risks of a data breach.
Managing resistance to change
When undergoing operational changes, some level of resistance is inevitable and concerns about unwanted disruption or redundancy may arise among employees. Having open and transparent communication with employees and addressing their concerns can encourage them to provide valuable suggestions and insights from the ground that can help with the change management process.
If there are new roles created while introducing a new payroll software, providing the necessary tools and training can help ease the transition and make employees react more positively to change. In turn, payroll automation may promote greater collaboration and agile ways of working in the organization.
AI to provide rich insights
Automated payroll systems are reshaping today’s payroll operations by reducing time, errors and expenses, allowing payroll professionals to focus on performing higher level tasks which will value add the organization.
As with any technology integration, there are bound to be risks involved. Hence it is crucial for organizations to access their current processes and ensure there are proper procedures in place to avoid errors or compliance issues.
Gradually, AI will also play a critical role in organization’s payroll functions. Combining automation and data analytics, AI is the next step for organizations to make use of rich insights and efficiencies to track and analyse data in real time.