Different factors contribute to the success of every business, and a key factor is employee satisfaction. Many employers know this and strive to ensure they provide the primary work conditions that help their employees thrive. One thing many employers forget is the role of the Human Resource Manager and how vital it is to the overall work atmosphere of the company.
HRMs already have a lot of work handling employee relationships daily, and leaving them with the extra stress of managing payroll manually might not be the team bonding task you think it is. Regardless, about 34% of businesses still use paper for payroll, even though paper-based payroll systems are outdated and inefficient compared with software.
Good payroll management software offers many benefits, and we will be going through most of these benefits today. We also briefly identify factors you must consider before picking a payroll management software for your business. But first, what functions are payroll management solutions supposed to fulfill?
Functions of payroll management software.
Payroll management software are powerful tools, but it are not the be-all and end-all of your business process. Advanced payroll systems solve many organizational problems, but there are some core functions a payroll software is supposed to fulfill.
Processing salary payments.
The primary function of any payroll management software is processing payroll. This is the first function your payroll system should fulfill. No employee wants to work without pay, but it is a fact that when businesses delay paying their employees, it causes hardship for the employees. Processing employee payments goes beyond handing out salaries. A good payroll software must be able to account for timing, rewards, taxes, bonuses, and other perks when processing payments. This must be done accurately while recognizing each employee’s contract with the company.
Keeping Records
Record keeping is another vital function of payroll management software. Keeping employee records, payslips, and other essential details helps human resource managers better facilitate proper payroll processing. Deepening on your location, you might be required to keep specific employee data, and a good payroll should easily facilitate keeping such records.
Compliance and Taxes
Taxes are a big deal for model citizens, and most countries allow businesses to pay taxes on their employees’ behalf. An essential function of payroll software is to make it easy for CEOs and human resource managers to calculate taxes accurately and deduct them from employees’ salaries. Furthermore, payroll software makes it easier to comply with the regulations and laws concerning labor, taxes, and employees.
Compensation Structure
Besides payroll processing, payroll software is an organizational structure for reliable employee compensation. It achieves this through its automation features and employee data stored on the system.
Benefits of a good payroll management software.
It saves time and reduces errors.
Manual payroll management is usually fraught with errors and very time-consuming. The primary reason many companies and businesses switch to payroll software is that it cuts down on time spent calculating payroll and is pretty accurate. Many payroll systems are beginning to include artificial intelligence in their tools, increasing efficiency and accuracy. Coupled with existing automation functions of payroll systems, you have a powerful tool that reduces the workload of paying salaries, taxes, and bonuses and saves you a ton of time.
Improve employee morale and satisfaction.
The satisfaction of your employees is as important as the satisfaction of your customers, and paying your employees promptly is vital to their satisfaction. You definitely do not want an office field with grumpy workers because their pay came in late or was not correctly processed. Good payroll software helps you handle the complexities of payments easily. This boosts individual and overall employee morale. This can also have long-term effects, making your company a haven for top talents.
Simplifies compliance with legislation and regulations.
Complying with all the legislation governing the business sector in a country is challenging. You have to constantly stay acquainted with the changing laws and regulations. While possible, the situation becomes a bit more complex when you include global businesses with employees spanning different time zones. Payroll software makes it easy to comply with regulations.
Improves record-keeping
Proper record-keeping helps employers and employees monitor payment processing and other details. Payroll software makes keeping records a breeze, whether you use cloud-based payroll software or store them on-site. Employee records are also not just kept haphazardly but are correctly organized and easily retrievable. You are even allowed to customize your record-keeping process depending on the payroll software you are using.
Data Security
After you have collected your employees’ data, you have to keep it safe, and here is where great payroll software proves itself. Standard payroll software offers high-level data security, encrypting necessary data and ensuring your company’s data is safe from cyber-attacks and viruses.
Customer support
If you get stuck using a feature or are unable to navigate around some sections of your software, you can always ask for help. Great payroll software provides responsive customer support that is interested in solving your problems.
Get automatic pay slips.
This has become a standard feature for all payroll software and a huge benefit for employees and employers alike. You can automatically generate pay slips when payment is processed, which can help track employee payments.
What factors should you consider when selecting the best possible payroll management system?
In picking a payroll software that is right for you, here are some factors you should put into consideration.
- Integration with other tools: Make sure the payroll software you purchase can seamlessly integrate with your existing suite of tools.
- Payment model: What pricing systems are offered when you want to opt in for a payroll software? Do you get a demo or a free trial? Are you paying per month or yearly? Look out for what best fits your budget.
- Reputation: No one wants to work with payroll software that is known for crashing quickly or for being easily hacked. Do your research before you settle for a payroll software.
- Industry or size restricted or customizable: Do you have a lot of employees, or are you just starting out? It’s usually safer to go for scalable options or those that meet your direct needs.
Conclusion: Summing Up Payroll Prowess
Investing in good payroll management software can improve your staff management by guaranteeing timely payments, regulatory compliance, and increased employee satisfaction. Businesses that integrate dynamic payroll solutions may focus on development and innovation while leaving payroll concerns behind.