Payroll Management Systems – Eliminating Errors Made Easyadmin
Payroll is the backbone of any organization and involves a number of processes. The task of payroll management is crucial, undertaken to ensure that said process runs smoothly. However, there are instances that payroll processes run into errors that can be costly.
The global payroll survey of 2021 shed some insight on payroll and how the aspect of payroll would be a major aspect that would propel organizational growth in the time ahead. Some of the strategies and insights from this survey are as follows:
- Organizations rely more on analytics and technology and have the bonus of data security, speed, and accuracy of reporting, ease of maintenance of company records, etc.
- Multinational organizations are looking to streamline their payroll systems and software and make payroll management processes more efficient.
- Running multiple payroll systems across an organization is an inefficient practice where lapses, errors, and payroll compliance failure are bound to happen. 73 percent of organizations lacked the payroll data from their organization to inform their progress and vision. 51 percent of respondent organizations were not confident in their payroll compliance.
- The pandemic has affected organizations worldwide. Organizations are becoming leaner and more efficient, especially in a hypercompetitive marketplace. 61 percent of respondents found it difficult to pivot their payroll to meet the challenges they faced. 33 percent of respondents stated an ill-equipped payroll system to support organizational expansion plans. However, organizations with unified global payroll systems reported that data analysis was quicker and efficient and was able to scale to support their organization’s growth.
Payroll errors can be a major hindrance for organizations in growth, credibility, overall effectiveness, and finances. With this aspect in mind, organizations go in for outsourcing their payroll processes to HR services or implement effective payroll systems and software. Here are some ways organizations effectively implement payroll management systems and payroll software to cut down on errors and maximize efficiency.
Read more: Common Payroll Errors – What You Need to Know
- Implementing Systems and Protocols: Implementing effective HR systemsand payroll systems and protocols can ensure that organizations have a rock-solid foundation. Assimilating data from various departments, individuals, and perspectives can contribute to an organization’s holistic and inclusive foundation. The systems and software must also clearly delineate elements such as company norms, deadlines, leave, attendance, taxation, and compliance-related information.
- Data Security: With the rapid digitization of HR processes and systems, organizations’ data security is a major concern. According to IBM security, the cost of a data breach in 2021 in India was estimated to be 16.6 crore INR, an increase of almost 18% from 2020. It is imperative now, more than ever, to ensure that features such as data encryption and two-factor authentication are embedded into payroll management systems to maintain privacy and confidentiality.
- Streamlining: To ensure effectiveness and ease of access, organizations can streamline HR processes and systems across branches and locations. By adopting standard protocols, cloud-based record-keeping, and automating routine processes, organizations will have more time to deal with fresh challenges necessary for their growth. Using an HRIS will also add value to an organization’s payroll management system.
- Inbuilt Compliance: Given that compliance, failure is an area where organizations can lose face and financial resources, building compliance checks and reminders into the payroll management system will ensure that payroll and organizational processes are on track and not in violation of any compliances.With customized and in-built alerts, reminders, and information regarding practices and protocols, this feature will be of immense value to any organization.
Read more: Costly payroll mistakes that could ruin your business[Infographic]