Technology is advancing quickly and if you run a business you may be faced with the important question of how you can embrace the shift towards digital transformation.
One key aspect of your business that you should consider automating is your payroll system, which can greatly benefit your organization.
What is payroll automation?
Payroll automation is where businesses and organizations use software solutions to manage the payment of employees, as well as pensions, P45s and a host of other processes that, traditionally, the HR team would be required to do.
An efficient payroll system is important for any business including start-ups that may not have the capacity for a finance/HR team yet but also larger companies where manually calculating payroll would be too big of a task.
Benefits
Increases efficiency
Automated HR systems save the overall time that is spent by those in your HR department processing employee data, leaving more time for other areas of operation.
This increases the overall efficiency of your business as payroll can be a highly time-consuming activity if done manually.
Automated systems also mean that employee information can be easily edited and accessed and data can be stored in a way that complies with regulations.
This means that everything can be stored remotely in one place rather than across multiple places on the internet or on paper in an office filing cabinet.
Cuts costs
While payroll automation software does come with a cost, it will likely help your business to save money in the long run.
When hiring employees in-house to deal with payroll you will need to hire an individual with payroll management training who is aware of all regulatory laws and compliance matters.
Generally, this kind of employee will have a higher salary due to their previous experience and you will also have to consider the extra benefits they will receive if they were to become a full-time employee.
Reduce error
Traditional, manual payroll processing has a high room for error which increases employee stress and reduces morale.
Due to the repetitive tasks required when manually inputting payroll information, errors are much more likely to be made whereas the accuracy of automated processes can be up to 99.99%, which greatly benefits your business.
The systems can also identify any errors or fraudulent activity both internally and externally – from employees taking too much sick leave to employers allowing too much overtime.
This ensures that your business stays above board and complies with any ruling, which may ordinarily be missed through manual processing.