Is The Digital Revolution Influences Payroll Managementadmin
The ongoing pandemic has forced organizations and employees to adapt to very different working conditions. However, companies that had already made the switch to technologies such as cloud-based software, online payroll and outsourcing found it easier to adapt to the new normal. Payroll services in India have been a boon for various organizations during the pandemic.
The HR digital revolution has well and truly arrived and is here to stay. Organizations are on the lookout for faster, more efficient practices that can meet the demands of extremely competitive businesses and marketplaces. This revolution has forced manager’s businesses to rethink existing models and practices of how workplaces should function.
The 2018 Payroll Operations Survey by Deloitte showed that:
- 89% of respondents already had online payroll self-service functionality
- 83% of respondents offer employees the ability to view pay statements online
This statistic shows just how much technology has influenced payroll management services and how organizations have used their services to help their own businesses. Some organizations find a host of benefits that come with adopting technology or using services that have embraced the potential of HR technology. Some of these benefits include:
The cost of handling payroll processing services saves costs and is much cheaper. Instead of spending hours with accounting departments to ensure employees are paid correctly based on their position and permanency, payroll processing services can make sure that employees are properly classified, ensure that they are taxed correctly, and paid correct amounts. This reduces hours of effort that could be directed elsewhere towards the growth of an organization.
Minimizing Human Error
According to RazorpayX’s Payroll Report 2020, 57% of Indian businesses still rely on paper or excel sheets for payroll management and processing. This substantially increases the risk of human error and eventually cost to the company. By using payroll management services, these companies can reduce the time and effort to rectify mistakes which can lead to a considerable decline in costs to the company.
Online Payroll is More Time Efficient
According to information from Score, a non-profit business mentorship organization in the United States, 26% of small business owners who handle payroll in-house spend three to five hours per month on payroll. 40% of business owners spend 80 or more hours per year on taxes, payroll, and working with accountants. Handling payroll in house can be a time waster. Outsourcing it to payroll services in India who will handle the payroll process online can save a massive amount of time and effort.
Deadlines Are More Easily Met
Online payroll services have become more user friendly and intuitive. This aspect allows for managers to get constant reminders about deadlines for payroll related processes. For instance, taxation related tasks related to payroll require managers to abide by specific deadlines. Payroll management systems can ensure that constant reminders and checks can be conducted to ensure that managers meet compliances and deadlines.
Easier Access, Documentation, Security
One of the payroll’s key tasks is to handle documentation and ensure their safety and ease of access to employees. According to a study by IBM, the average cost of a data breach in India is roughly 2 million USD, a very significant amount. The study also found that using smarter technology, the cost of a data breach was almost halved, from 6.03 million USD to 2.45 million USD. Advanced security technologies or outsourcing payroll to payroll services in India can ensure that data is well protected and ensure that their interface is easy for employees to use and access their data.