Payroll stats say that “companies that outsource payroll save 18% over businesses that tackle it themselves.” For long organizations have been worrying about their payroll management and coming up with such optimization techniques.
Now, since it is such a “talk of the town”, let’s discuss some really incredible ways to get the best out of your payroll management system.
In this blog, we will throw light on the 7 basic things to keep in mind for payroll optimization:
- Automation & Upgradation
- Payroll Outsourcing
- Product Training
- Costing & Budgeting
- Regular Auditing
- Distribution of Tasks
- Separate Bank Account
Automate and Upgrade
This is the first and the most important way to improve your payroll system. If you have been using an old payroll solution, it’s time to either upgrade it or bring a new one to the workplace. Choose and implement the latest in the market and top-notch payroll management software and be ready to take a leap. Using automation, you can say “NO” to paperwork, and mechanize all-inclusive payroll-related operations like auto-scheduling payroll, staying compliant with the latest labor laws, automating system updates, and more.
Outsource Payroll In Parts
It’s no news that some parts of the HR processes like payroll management are better managed from outside. Specifically for SMEs where maintaining a budget is a priority, outsourcing is the best option to optimize payroll. Considering the heavy costs involved in hiring & nurturing payroll experts, buying and upgrading the systems, among other expenses, payroll can be a costly affair for those who are still in the developing phase of business. So, nowadays, for various other favorable factors, outsourcing payroll partly is in!
Train and Educate Users
If you decide to go by the in-house payroll management, make sure the ones using the system are well-informed about each advancement. To get the best out of your payroll software, it is recommended that you organize regular training sessions for your payroll staff. In this way, they keep abreast of the latest modifications in the system and can further educate the employees and clients accordingly. Moreover, when every user knows how to operate the system correctly, the output will be automatically maximized.
The two departments that are said to manage payroll together, i.e., human resources and finance are quite intricate and already loaded with a gamut of processes. So, it is wise not to spend a huge amount of money on just one part which is payroll. To optimize payroll management, cost optimization is very necessary. Thus, you have to formulate and utilize the budget such that the costs are evenly split or distributed, frequently analyzed, and cover the major areas only.
Conduct Audits & QC
First of all, streamline your data in such a way that it is well-organized and can be retrieved later easily. Avoid manual data entry as much as possible and link the information relevant to payroll like time & attendance. Now, the main part is to regularly conduct audits and quality checks on the payroll data. If not weekly, the whole payroll process must at least be examined every month to get the best results.
Distribute Payroll Tasks
Now, it is no rocket science that you must not let one employee juggle multiple tasks. Given that the payroll processes are too many and too elaborate, it is advised to assign different parts of payroll administration to a suitable employee. Even if you have purchased and installed payroll management software, the roles should be clearly defined and fairly distributed to enjoy an optimized outcome in the payroll domain.
Separate Payroll Account
“Too many cooks spoil the broth.” Well said by someone because rather than mixing everything up, doing things in an organized way always produces better results. Similarly, for any business, it is vital to manage clean accounts for each process through separation. It will keep the records easy to handle and evaluate, thereby optimizing the whole process.
“49% of workers would begin a new job search after only two issues with their paycheck.” Do you want loyal employees and long-term relationships or are you okay with disappointing and letting them go? Decide what’s best for you and start following the best means to optimize your payroll management system.