Overcoming Obstacles in Payroll Processing

February 16, 2021
Overcoming Obstacles in Payroll Processing

Processing a company’s payroll is a time-consuming task with little room for error. It encompasses tasks that range from employee documentation and maintenance to taxation and time and attendance. Organizations can look at payroll outsourcing to improve the efficiency of their business.

Organizations may look to expand the scope and scale of their operations and business and with it come major challenges. Handling the logistics of expanding an organization’s operations is a task that requires both patience and focus. One of the key aspects of this is payroll management.

According to RazorpayX’s payroll report for the year 2020, 57% of Indian companies still use paper or excel for their payroll management. This methodology might not work in the long run as organizations may be looking to move to leaner, smarter practices and possibly outsource their processes to payroll management solutions.

Building a business is an intimidating task with a number of obstacles. Some of the challenges faced while processing payroll includes:

Adapting to New Practices

When expanding a business globally, organizations will go through a period of change where employees will have to adapt to new practices and methodologies. This will inevitably lead to resistance in some form and can extend to payroll practices as well. Payroll managers will have to restructure their practices and operations to suit global clients and global protocol better. Organizations can ensure a smooth transition by providing effective, transparent communication of goals and updated practices and ensuring a sense of cohesion and bonding between various teams can be critical to an organization’s success.

Global Standards

Organizations will have to bear in mind that with expansion and growth, they will have to compete with competitive global market standards and issues that organizations may face locally. Standardizing and streamlining the payroll process or outsourcing the process to local payroll management solutions or an established international one will help organizations in the long run. Ensuring that these local payroll vendors can communicate with other payroll partners of the organization worldwide can also help in effectively processing payroll.


Dealing with compliance is another challenge that organizations will certainly face as they grow. Different locations, income brackets, taxation and changing regulations will pose challenges to any organization looking to grow their business. Organizations will also have to deal with compliances in different countries and even states. Having the right payroll management solutions can help organizations deal with compliance risk and help them in scaling their business a lot better. This will enable these solutions to handle global compliance as well as ensure that company data is safe and in the right hands.

Reporting and Analytics

Reporting and analytics have become a mainstay in most modern businesses. Organizations that effectively compile, assimilate and analyze data have done so with great success. From helping organizations reach their customers and shareholders effectively to help them find areas that could need improvement, data and analytics usage has changed the way business is done. Therefore, in a global organization with different locations, different teams, parameters and unique challenges, reporting and analyzing data is a daunting task. Outsourcing to payroll management solutions or HR management solutions that allow organizations to use cloud-based services can enable multiple teams to work together across locations. This in turn will enable them to assimilate and analyze data more effectively.

Are you looking for a payroll partner? Get in touch with TalentPro India HR Pvt. Ltd today. We offer end-to-end human resource management services, ranging from handling your payroll, staffing solutions, Statutory compliance services, payroll solutions, training and consultancy. Our dedicated services will ensure that your organization has whatever it needs to reach the top. Contact Us today

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