When it comes to payroll, businesses often focus on its’ pain points and why they shouldn’t invest in it rather than focusing on how it could improve business operations and performance.
Due to this many businesses are missing out on various opportunities to improve their business operations, employee and customer satisfaction and simplifying payroll procedures.
So what are payroll's main pain points and how can they be overcome?
Outsourcing payroll is often overlooked due to businesses thinking it’s too costly to implement and because it’s not a revenue-generating priority.
However, it should be noted that without payroll, staff may not be paid properly or on time, causing issues with employees attitudes toward work, productivity and home lives. This could cause companies to lose money through fines or penalties for incorrect payroll or cause a high staff turnover, leading to companies losing money. This highlights that even though payroll isn’t seen as a profit generating priority, it could be helpful to upgrade it to help avoid loss of money.
Implementing payroll software can be overwhelming or daunting for companies due to them worrying about the complexity of moving to a cloud based payroll software.
Worries can include:
● How long it will take to set up payroll software.
● How complicated and how long it will take to learn and use the software.
● How to transfer manual data over.
Confidence can be an issue for companies when it comes to considering switching to an automated or outsourced payroll software. Employers may be concerned about whether they will have to let their internal payroll team go if they switch to a payroll provider, causing them to worry about potential internal conflicts or issues.
When companies rely on manual payroll strategies, it leaves a lot of room for errors and compliance issues. If companies find themselves breaking multiple compliance rules, it can lead to serious consequences such as penalties, fines or even in some cases businesses may have to close.
Completing payroll manually can make it hard to keep on top of data management properly. This can include keeping on top of employees personal details, any holiday or sick days they’ve taken and how many they’re entitled to. This can lead to errors and decrease employee satisfaction and motivation.
In terms of security and GDPR, manual processes can make it hard to keep documents secure and comply with GDPR processes. Holding physical documents can make it easier to breach security processes due to it being easy for them to be left out and seen by other people, as well as it being easier for people to physically break into data as well.
Despite payroll having these pain points, there’s no need to worry as they can be easily solved.
Below are 5 simple ways you could solve your payroll pain points and improve your current processes.
Automating payroll helps businesses take care of other critical tasks they may not have time for if they completed payroll manually. Automated payroll can help optimise business procedures by creating payroll reports, processing salary payments and calculating tax withholdings. This helps businesses prioritise tasks and act more efficiently.
Providing login portals for staff allows them to access their pay slips when and where they like. Logins can also be provided for online payroll tasks to make it easier for staff to access, manage and keep in line with GDPR.
Providing regular training will help staff stay up to date with the latest industry trends and rules and regulations allowing your business to run smoothly and reduce compliance risks.
Some benefits of regular training include:
● Increased productivity.
● Reduced employee turnover.
● Improved knowledge within the business.
● Reduced risks of breaching GDPR.
When outsourcing payroll it usually provides secure software and data storage within secure data centres in line with GDPR best practices. This will help keep peace of mind over data security and legislation breaches.
Outsourcing payroll and integrating it with other softwares such as HR makes payroll more cost effective than people may think as it combines multiple processes making it easier to access and process data quickly and efficiently.
At Payescape we offer payroll services that can help improve efficiency, achieve compliance and help provide expert support, to help businesses focus on other critical tasks.
Payescape Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (register number 821826) for the provision of payment services.