- August 20, 2019
- Posted by: BuzzClan
- Category: Business plans
The payroll process is arguably the most important and the most convoluted process in the HR vertical. The criticality of the payroll operations warrants a sound strategy built around data obligations and legislation of the country of operation. The payroll strategy has many benefits, some of which are:
- It streamlines the payment process making sure the payment goes on time without errors
- It helps in creating a proactive working environment with expectations
- It helps in creating a secure IT infrastructure to effectively manage fraudulent activities and sensitive employee information
- It reduces overhead and infraction cost as it puts the focus on compliance.
In today’s globalized economy, where the business operations are spread across the globe, its imperative to have payroll strategies which include people, process and technology to simplify the payroll process.
Let’s discuss the payroll strategies which might help to keep your business stabilized.
- The strategy should leverage the capabilities of HRIS by integrating payroll with other HR functions such as time and attendance. This will immensely reduce the errors due to manual processing. The ERP led solution provides an integrated platform, driven by single source of truth, allowing the stakeholders to make an informed decision. The integration of the payroll system with taxation systems helps the organization to be abreast with new tax requirements and remain compliant.
- Payroll policies are complex as it is but with multiple geographical locations involving multiple legislations and currencies, it becomes even more convoluted. The payroll strategy should clearly define payroll policies in terms of attendance, commissions, overtime to remove any ambiguity.
- The self-service capabilities should be a part of any payroll strategy as it gives employees more autonomy and promotes engagement. With mobile applications and online portals employees can check their payroll details on the go. Managers have better insights into labor cost with intuitive alerts and notifications.
- Payroll consist of sensitive information about employees, vendors and partners. Its imperative that a payroll strategy encompass quality controls and security features to safeguard the data from getting into the hands of perpetrators.
- The payroll process inundated by number of repetitive and manual process which if automated can allow the HR professionals to turn their attention to formulating strategies rather than being stuck with administrative task. Any good payroll strategy caters for automating routine task to increase operational efficiency.
Payroll process is the backbone of an organization and any payroll strategy should be closely aligned to company’s vision and goals. It should include people, process and technology elements for its smooth functioning.