Most business owners tend to hire individuals to manually work on admin tasks instead of using integrated software and outsourcing services. This is especially true for startups or small businesses where there’s typically limited resources and a smaller staff to maintain.
However when the business grows, so will staffing concerns. Manual processes, especially with payroll, can be tedious and have a negative impact on overall efficiency and productivity.
This is when organizations need to consider setting in place a payroll management system.
A payroll management system is the use of any or a combination of software, hardware, streamlined processes, and payroll services that work seamlessly to help companies make payroll processing (and other payroll-related functions such as timekeeping) faster and more accurate.
That said, getting a payroll management system is much more than just signing up for cloud software or say using a biometrics device. It is implementing an overall system and process, designed specifically for the organization’s needs.
Signs That Your Company Should Invest In A Payroll Management System
In general, organizations must already have a payroll process in place. The question is when these existing processes (manual or aided with existing software) need to be streamlined into a more integrated system. The following signs will help you know that it is time to invest in a payroll management system.
1. Your business is growing
A manual system for handling administrative tasks is an unsustainable model for startups that are seeing signs of growth and progress. If you see that automating these processes as you grow will save you time, and resources, you might just be right.
2. Your current systems are incompatible
A payroll management system is a fully integrated system that can handle various data points and perform accurate computations in a fraction of the time it takes to do it manually. For instance, you may have procured a biometric device to make manual encoding a thing of the past, but your current software cannot integrate with the device directly. It may be time to consider a more flexible system for your organization.
3. You have too many backlogs
If you are spending too much time fixing payroll issues instead of focusing on your business, then you’re not maximising your full capacity. And you might be selling yourself —and your company—short. Don’t let administrative task stop you from looking at the big picture.
Relying on a manual system or outdated process increases the risk of mistakes. These can cost a lot of time, legal fees, and resources to correct. Using the right payroll management system will ensure that you’re on top of compliance requirements on a consistent basis.
4. You get too many employee complaints about salary mistakes
Salary concerns are a touchy subject, and employees are understandably sensitive to any mistakes committed while computing their paycheck. Invest in a reliable system to fix these issues, and it can lead to loyal and happy workers who will work hard for you for years to come.
5. Your current payroll process relies on too much paper
It’s time-consuming and wasteful to continue to use a system that needs too much paper. Cloud computing options allow for 24/7 access to vital information, where reports can be generated in an instant and data updated as soon as new information comes in.
Pros And Cons Of A Payroll Management System
Benefits
- Efficient employee information management
- Convenient and easy report generation
- Security Management
- Accurate salary computation that arrives on time
- Reduce HR administrative tasks
- Access to up-to-date compliance regulations
What to think about
While deploying a payroll management system might require time and resources, in general having a payroll management system in place gives far more benefits than the work involved in setting it up and choosing the right one. That said, the benefits are dependent on the successful implementation and transition to a new process. The following are things to consider when you think it is time for you to explore a payroll management system.
- Up-front and maintenance costs
- employee training requirements
- the time required for installation, setup, and configuration.
A reliable payroll management system is vital to running a successful business. It handles the repetitive, tedious, and time-consuming tasks so that you and your management team can have more time, energy, and resources to focus on activities that will grow your business. There might be upfront and maintenance costs to deal with, but the benefits of automating your company’s payroll system far outweigh these costs.
If you’re interested and would like to know more about when you should invest in a payroll management system for your business, we’d love to help you. Send us a message at customersuccess@bridgepayday.ph.
