Finance is the lifeblood of any organization and it holds true irrespective of the type or sector the business operates in. On the other hand, it is the employees’ payroll system that keeps the human resource going smoothly.
Employees always keep an eye on their payslips and salary cheques and if they find any issues around payslips or salary cheques, they raise them to the payroll team.
Errors in the payroll system and continuous queries can impact payroll productivity. Thus, there is only one solution – implementing the payroll software in the company and boosting payroll productivity.
What Is Payroll Software, and How It Impacts Productivity?
Payroll software is a set of applications used by HR or payroll professionals to manage the entire lifecycle of the payroll process.
It streamlines and automates various processes such as calculating payments, withholding tax, and depositing monthly payments directly to the employees’ salary account.
Payroll software require minimal maintenance, making them easier to adopt.
You just need to enter a few details into the software, like employees’ wage amount, bank details, and others.
In other words, payroll software aims to enhance the operations of businesses.
The Impact of Payroll Software
Payroll software comes power-packed with many features, such as data centralization, and customization, amongst others.
However, the software’s utility is not limited to automating the payroll processes. Using payroll software directly impacts your overall organizational productivity. You must be wondering how.
Here are a few ways in which the best payroll software can positively influence your employees’ work efficiency.
By introducing the electronic payroll management system, several companies have replaced the paper process with the modern automated process that helps in saving the most valuable time of the company.
Nowadays, the payroll team directly uses electronic storage media for securely storing all essential documents of the company.
Gone are the days when the payroll team used to pile up files and documents. Today, they put all documents in the storage media or use the cloud computing system so that they can access it anytime, from anywhere.
Save Time and Energy
In general, when employees face difficulties, they need to approach or interrupt the responsible staff of the payroll team.
It involves a discussion between the involved parties on the matter and taking their suggestions.
For instance, if an employee wants to print a salary slip, he/she has to approach the HR or payroll manager. However, with the payroll solution, they can directly sign into their employee profile and print the salary slip with ease.
Using an automated payroll software system, employees can now access the payroll team through the computerized network and describe their problems without having to contact the payroll team directly.
Besides, whenever there is a requirement to share any kind of information, the payroll teams send emails rather than letters. A payroll management system helps in all these activities.
This is how the payroll management system can boost payroll productivity.
Boost Employee Morale
Happy employees make for great productivity at work. The economic factor plays a significant role in impacting your employees’ morale.
Low or inaccurate pay, payment delays, and poor working conditions can immediately lower your employees’ morale.
Payroll software integrates closely with time and attendance management software and helps in the accurate calculation of every employees’ pay. It takes into account the extra hours worked, leaves taken, and any commission or bonus pending.
It ensures that employees are paid on time and accurately.
Save on Labour Cost
46% of small businesses spend thousands on payroll administration monthly. This can be easily reduced by implementing payroll software.
Since most of your processes are automated, redundant and tedious tasks like data entry are eliminated. This saves time and the need to employ extra staff. This ensures that employees can focus on more productive tasks rather than getting stuck at data entry.
Besides, businesses are shielded from penalties due to non-statutory compliance.
There are various types of tax that need to be assessed and deducted from employee wages. Besides, every tax has a unique set of reporting and remittance procedures.
While calculating your employees’ wages, you can’t afford to miscalculate the tax amount. Even a small mistake can result in a huge penalty.
However, a payroll system can automatically calculate and file taxes with full accuracy. It ensures that your business stays compliant with all tax regulations, leaving you tension-free.
It’s essential to have a strategy in place to grow your business sustainably. We live in the era of data. Having payroll software, you can quickly gather critical data, store, and analyze them. These insights will have you make important decisions and plan for the future.
It becomes easier for the managers to formulate future goals and take the business in the right direction.
HR Management Efficiency
Another way a payroll software solution increases overall productivity is by streamlining HR-related activities. A comprehensive solution now comes equipped with HR management add-ons. Even a standalone system can seamlessly integrate with HR software.
Thus, you can easily manage all information related to your employee contact details, time and attendance tracking, etc., from a single database. Besides, communication gets streamlined, bringing efficiency to the workflow of your organization.
Employees are the backbone of your business. Whether your business grows or bears losses, it directly impacts your staff members.
We are slowly moving towards automation for increased productivity and efficiency. Investing in disruptive solutions such as payroll software can help elevate your HR department productivity.
In the past five years, the market size of the HR and payroll software has grown 5.3% per year on average. More and more companies are realizing the importance of using payroll software.
If you want to convert your organization into a productivity powerhouse, you know what to do.
Need any help choosing the right payroll software? Please feel free to reach out to us.