4 Challenges That Digitizing Payroll Can Address
It’s no secret that the payroll management process completely consumes a HR team’s time for at least a few weeks every month. Over the years, we’ve seen many solutions come up in the market for simplifying this megalithic task. However, businesses, particularly large enterprises, still struggle with their payroll process despite the strides in technology.
While paper records may be a thing of the past, most payroll processes still require extensive human management. This leads to a process rife with issues such as double entry, inability to stay abreast of changing regional and international laws, untimely and inaccurate payments, and loss of information. Proper digitization can help assuage many of these challenges that are inherent in manual payroll processing.
In this article, we’ve enlisted the help of our Business Lead – EMEA, Mr. Sunil Makkar, to deep dive into the challenges that plague the payroll management process till date and his expert opinion on how to handle them.
The Payroll Challenges That Digitization Can Address
1. Complex Computations
When it comes to payroll, one of the biggest setbacks for HR departments is interpreting the hours and compensation for shift workers, particularly now that industries are bringing in additional complexities such as a flexible pay structure and hybrid work environments. It is a herculean task for a human to keep track of myriad pay structures, tax benefits, attendance data and more. Even the most diligent people are bound to slip up occasionally.
Having a payroll management software that allows enterprises to automate timesheets and create custom pay structures ensures that businesses can simply update the right information once and run the process on autopilot.
2. Changing Compliance Requirements
Payroll is also heavily influenced by legalities and government regulations, particularly for organizations with offices/factories/warehouses in different geographical locations. There are also different sets of rules for blue and white collar employees. Thus, ensuring legal compliance is one of the most challenging parts of the payroll management process.
Whether you are opting for a SaaS-based payroll application or you are looking to outsource your payroll function, ensure your team is equipped to stay updated on the latest labour regulations to ensure 100% compliance.
3. Data Security
Payroll contains sensitive and personal information about your workforce. Ensuring this data is kept secure is an important legal requirement. Thus, a manual, error-prone payroll process is highly susceptible to data leakage and can lead to regulatory scrutiny, and even fines. A big advantage of digitizing payroll is that it can increase security of payroll information. Software like Allsec’s SmartPay come with inbuilt safety protocols that safeguards your payroll data and helps prevent information loss.
Choosing the Right Payroll Outsourcing Company
With a spike in the influx of HR applications and payroll outsourcing companies, there is an endless array of options available in the market. However, businesses must consider their current as well as future needs when deciding on the right fit for them. The right application or company enables you to create a streamlined, hassle-free process that can scale to fit your business growth.
For instance, Allsec provides payroll technology that comes with many benefits such as robust data security and speedy management, implementation of standard payroll practices across different departments and geographies, better employee engagement, agility in payroll processing, and a seamless system that maintains past and current payroll records for reference. We can process over hundred thousand payroll records every single month.
If you are struggling with improving your payroll process, reach out to us and we can help you streamline your process in just a few clicks.
