The Next Big Thing in Payroll Servicesadmin
Payroll services are very strategic but also a never-evolving process. A payroll service provider not only gives out paychecks but also handles many other vital responsibilities. The latest trends in payroll suggest many exciting facts.
The latest technology has impacted almost every sphere of the HR department. The payroll process is no exception. These are the newest payroll trends emerging, and a payroll service would do well to adopt them.
Automation of payroll
Today is the age of digitalization and automation. Automation has made processes faster and errors free. Not only the product line-up that you should be automating, but everything from sending out newsletters to paychecks is also under a need for automation. Many strategic areas of payroll, such as payroll compliance management, are also under the dire need for automation. Manual payroll processes rarely used nowadays.
Automation offers several advantages over the manual ones
Automated payroll is less prone to errors when compared to manual ones. The calculations can be intense if done manually. Also, automation makes the processes fast and efficient. A payroll service provider must reap the benefits of automation to stay in the market. Also, automation can be cost-effective in many ways. If the number of employees of a company involved with payroll management is plenty, an automation system can be cheaper and faster.
Timekeeping can be done efficiently, including the calculation of compensation given to each employee, depending on the hours that they have worked. This may include overtime payment and deduction as well, if so required. With automated timekeeping like biometrics or RFID, the chances of errors are practically nil. As automation will avoid any delays, it will ensure that the employees are always happy.
Digitization is another glowing face of modern-day technical advancements. As companies plan to grow, digitization of HR becomes even more prevalent. It has been observed that, especially, the larger organizations are shedding off their traditional operating systems and going for digital platforms to manage their everyday HR functions and payroll services. Even the well-known payroll service providers in the market are moving heavily towards digitization.
As business is all about discovering and responding to trends, digitizing the payroll service is undoubtedly a huge thing that is happening surely and certainly. Payroll service providers are going in for fully automated, digital platforms to manage their payroll services. This helps in improving the top-line performance of the system. Now the HR can track and monitor payroll processing, benefits administration, HR resource management, and labour law compliance all in one place. With digitization payroll, compliance management has been positively impacted.
ESS is probably the next big thing in payroll that is waiting to happen. In ESS systems, employees can edit their demographic and basic HR information streamlining the data entry process. Employees can edit the tax exemptions as well. Some ESS programs allow employees to view their time-off accrual balances. There are specific ESS systems wherein the company can post employee manuals, directories, and forms online, where they are accessed and maintained.
According to Hunter Group’s 2000 Human Resource Self Service survey reports, the companies with ESS were able to increase employee satisfaction by 50 percent and reduce inquiries by around 50 percent. The average cost per traction was reduced by about 60 percent. Employers report a 100 hundred percent ROI in just one year. ESS is a new paradigm that employers interact with their payroll service.