Business Pains

There is no single pain point that applies to all areas of a business; each department can face its own unique challenges. These must be considered and discussed across the organisation during the planning phase of selecting an HCM solution.

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Business Pains
Business Pains examples

Business Pains Examples

An example, with T&A, something as simple as a clocking system malfunction can have a knock-on effect on payroll and shift management, as we discussed earlier. If you are spending hours or even days on payroll due to data issues from time or HR systems, there are wider considerations around data flow and integrations that need to be examined.
Keep an open mind when identifying pain points that may seem isolated to one department, explore the broader effects of addressing those pains and the cascading impacts on other areas of the business.

Some of the most common HCM business pains include:

Double entry: Entering the same data into multiple systems wastes valuable time and increases the risk of errors.
Lost money: Inefficient processes and unnecessary tasks result in higher operational costs that could otherwise be avoided.
Outdated systems: Legacy systems lack the flexibility and functionality needed to keep up with modern business demands and employee needs.
Lack of integration: Disconnected systems create silos, making it difficult to get a clear and unified view of employee and business data.
Support and service breakdown: Poor customer support can lead to prolonged issues and decreased user satisfaction, affecting overall efficiency.
Inefficient departments: Disconnected processes and lack of automation hinder the smooth flow of work, leading to delays and lower productivity.
Manual processes: Reliance on manual processes increases the potential for human error and reduces the speed and accuracy of work.
Compliance risks: Inadequate systems or processes can result in non-compliance with regulations, leading to legal and financial penalties.
Lost time: Time spent on repetitive administrative tasks could be better used on strategic initiatives to drive business growth.
Broken hardware: Outdated or malfunctioning hardware can lead to system downtime, disrupting productivity and causing delays.
Lack of features: Systems that don’t offer the right features can limit business efficiency and growth, leaving key needs unmet.
No mobile app: The absence of a mobile app limits employees’ access to essential tools, reducing flexibility and productivity.
Too many systems: Managing multiple systems creates complexity, increases the risk of errors, and drains valuable resources.
Lack of reporting and analytics: Without proper reporting tools, decision-making becomes reactive rather than data-driven, impacting strategic planning.
Overreliance on Excel: Heavy reliance on spreadsheets for data management creates risk, reduces scalability, and limits automation opportunities.
Forced upgrades: Mandatory upgrades that disrupt workflow and require significant time and resources to implement can frustrate users and lead to unnecessary costs.

Knock-on effects of each of these issues for Payroll and HR professionals

To help identify which departments could be impacted, the following breakdown explains how these pain points can have a knock-on effect across Payroll and HR functions, as well as other areas of the business. Understanding these impacts is essential to fostering a holistic approach to addressing these challenges.

Outdated Systems

Outdated systems pose a major challenge for Payroll and HR departments. Payroll processing can be delayed or inaccurate due to outdated software that lacks the necessary features for tax updates, pay calculations, or compliance. HR professionals may struggle with cumbersome interfaces, leading to slow onboarding processes, difficulty tracking employee data, and higher risk of human error.

Lost Time

In today’s world, mobile access is crucial for HR and Payroll teams, as it provides employees with easier access to payslips, leave balances, and benefits information. For Payroll professionals, employees without access to a mobile app may struggle to access critical payroll information, leading to increased queries. HR professionals may face challenges managing remote workers or employees in different time zones if mobile access is unavailable.

Double Entry & Human Error

For Payroll and HR professionals, double entry can lead to significant errors in employee records, payroll calculations, and benefits management. These mistakes can delay payroll processing, result in incorrect pay, and create compliance risks. This issue affects not only Payroll but also HR departments, who must manage the corrections and address employee concerns regarding discrepancies

No Mobile App

Mobile access is crucial for HR and Payroll teams, as it provides employees with easier access to payslips, leave balances, and benefits information. For Payroll professionals, employees without access to a mobile app may struggle to access critical payroll information, leading to increased queries. HR professionals may face challenges managing remote workers or employees in different time zones if mobile access is unavailable.

Lack of Integration

When Payroll, HR, and T&A systems aren’t integrated, data must be manually transferred between systems, increasing the risk of errors and delays. Payroll departments may find themselves processing inaccurate or incomplete data, while HR may be unable to provide up-to-date information on employee status, pay, or benefits. Integration issues also mean HR professionals may lack a single view of employee data, making decision-making difficult.

Support and Service Breakdown

Payroll and HR departments rely on responsive support to troubleshoot system issues, ensure compliance, and maintain smooth operations. A breakdown in support or long resolution times can delay payroll processing, cause compliance errors, and lead to frustration across departments. HR may face challenges with benefits systems, time tracking, or employee data management without proper support.

Too Many Systems

When Payroll, HR, and T&A functions are managed across multiple systems, the complexity increases. Payroll teams may struggle to consolidate data from different sources, leading to errors in pay calculations or delays in processing. HR professionals must manage multiple systems to track employee information, benefits, and performance, increasing the likelihood of missing critical data or deadlines.

Lack of Reporting and Analytics

Payroll and HR departments rely heavily on reporting and analytics to track employee compensation, benefits, performance, and compliance. Without the ability to generate accurate, real-time reports, both Payroll and HR may struggle to make informed decisions, causing delays or errors in key processes such as payroll distribution, compliance checks, and employee development.

Manual Processes

Manual processes in Payroll and HR are a major source of inefficiency. Payroll teams may need to calculate overtime or bonuses manually, which increases the potential for errors. HR professionals may manually update employee records, track leave balances, or manage compliance documents, all of which require significant time and effort. Manual processes also limit the ability to scale and adapt to business needs.

Forced Changes in Upgrades

When HCM systems are upgraded or replaced, Payroll and HR departments may face significant challenges during the transition. Forced changes can disrupt payroll processing, create data migration issues, and require extensive retraining. Additionally, upgrades may come with new features that don’t align with the needs of HR or Payroll professionals, leading to wasted time and resources.

Overreliance on Excel

Payroll and HR departments that rely heavily on Excel spreadsheets risk errors in data entry, version control issues, and difficulty maintaining up-to-date information. Payroll teams may struggle to calculate pay accurately without a fully integrated system, while HR may find it challenging to manage employee data, performance reviews, or benefits without a centralised database.

Compliance Risks

For both Payroll and HR professionals, compliance is critical. Failing to meet legal requirements, such as tax filings or GDPR regulations, can result in significant fines, reputational damage, and legal consequences. Payroll departments must ensure tax rates, overtime, and benefits are calculated correctly, while HR professionals must manage employee records, contracts, and legal documentation in line with regulations.

Understanding the knock-on effects of these pain points across Payroll and HR functions is crucial in identifying areas that need improvement and ensuring a smooth transition to a more efficient, integrated HCM solution.

 Human Capital Management Buyers Guide Index

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

Introduction & Planning

Below, you’ll find an overview of each section, with links to the full content for deeper insights.

HCM Core Components

Find out all you need to know on the essential elements that make up a comprehensive HCM system.

HCM Functionality

Exploring the key features that drive workforce efficiency and engagement.

Learn More

Time & Attendance

Payroll

Access Control

Scheduling and workforce management

Recruitment and onboarding

Performance management and succession planning

Selecting an HCM Provider

Choosing the right provider is just as important as selecting the right software.

Learn More

Sales process and RFQ/RFP considerations

Sign off

Implementation & Success

Rolling out your HCM system smoothly and ensuring long-term success.

Learn More

Building an implementation team

Training

Budgeting and timeline considerations

Employee adoption and change management

Transitioning to Accountability: Change Management

Business Pains In Summary

The pains you’re experiencing, or those reported by other departments, are likely being felt across your organisation, particularly in larger businesses. Even in smaller organisations, where you may be managing multiple roles yourself, it’s crucial to have discussions about the pain points experienced by each department throughout the entire HCM cycle. This will serve as a starting point for planning and implementing change.

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