Payroll processing does fall into the forte of human resources which build up the foundation of any organization irrespective of its size. Therefore, to seamlessly carry out the payroll processing, month-on-month, year after year with ever-changing workforce can be extremely daunting. Multitudinous changes take place within an organization from time to time when it comes to taxation, compliance and legal procedures. In order to keep a track of all these changing parameters and at the same time computing payroll for all the employees’ needs quite a bit of support process automation delivered by systems in the likes of timesheet and attendance software.
Before we delve deep into the kind of process automation that has ushered into this whole world of payroll processing, it’s only logical that we explore some of the significant challenges facing the HR domain across the industry verticals in last few years. Some of the pertinent ones are:
- The need to comply with the corporate governance legislation when it comes to payroll processing. Non-compliance to the set regulations may cost the organizations heavily.
- The ever-mounting urgency to leverage accurate information delivered by payroll systems and keeping the scope open for situations like maternity leaves and salary hikes owing to promotions.
- The urgency of accurately breaking down the tax in the pay slips in accordance with the tax laws of the country.
Mitigation of Payroll Processing Challenges through Technology Interventions
Four technological interventions have taken the world of payroll processing by storm and these are:
- Cloud Computing-Migrating the essential HR data to the cloud enables enterprises to seamlessly function without expanding its own capacity for data storage. In the dynamic business scenario where resources both in terms of manpower and money are super critical, optimization in any form is super essential. The whole idea is to make most with available resources and in the process, simultaneously, minimizing waste. Currently, an enterprise has the option to outsource the entire payroll management to service providers offering SaaS-based services. This not only saves cost but also helps seamless accommodate traction in workforce status quo and the policy changes in taxation laws.
- Integration with HR Management Systems- The HR management systems in the likes of Timesheet and Attendance Management Software are finding their collaborative space with the payroll processing tools in the wake of complex business challenges. This newfound integration has powered the payroll mechanisms with super smart data for accuracy.
- Instant Payments- The ever-increasing scope for freelancing has necessitated the need for real-time reimbursements. Multiple applications have developed over the period of time that enables the HR and the finance department to maintain and keep a track of the outsourced man hours.
- Artificial Intelligence- With the bots silently seeping into almost all facets of business, it would be unlikely that the world of payroll remains untouched. Currently, there are multiple applications related to resource management that can be integrated with the existing ERP system. These apps provide real-time notifications on various parameters to various stakeholders within the ERP system.
Converging the Potential of Employee Attendance Management System with Payroll
It is important to understand that while it is important to assimilate and integrate top technology trends in the existing process within an organization, it is also critical to assess whether the idea is cost –effective or not. As per the HR and Administration industry veterans, one of the best possible ways to leverage the above-mentioned technology interventions is to integrate attendance management platform with the ERP. This software pack is not just about recording the attendance of the employees and tracking the man-hours, it is more of an all-around business productivity tool.
Let’s deep dive into benefits delivered by the attendance management tool when it comes to payroll processing and the prominent ones are:
- Create a centralized data pool- Most of the modern employee attendance platforms are run on a cloud which gives a great deal of leverage in terms of creating a centralized data storage pool. In the dynamic work environment, a lot of employees work on third party payroll or standalone freelance contract. Therefore, the centralized pool takes care of all the data regarding the work output and the working hours of these resources as well. This minimizes paperwork, enforces transparency whilst payroll processing.
- Eliminate unnecessary paperwork- Integration with employee attendance management system completely eliminates the unnecessary paperwork that slows down the payroll processing. The entire process of collecting, assimilating and integrating the data is electronically done, so the HR and the finance team have more bandwidth to focus on business critical processes.
- Deliver security and reliability in the process- Currently developed bio-metric attendance platforms are encrypted with multiple security levels and work in conjunction with the RFID tags and cards which have its unique identity. This not only safeguards the rights of the employees but also protects the integrity of the data and offers tremendous accuracy for payroll processing.
- Ensure timely reimbursements and real-time reimbursements- Timely remuneration is a key indicator of employee productivity and the success levels of the enterprise. Therefore, timely processing of the payroll is critically important when it comes to employee satisfaction. Hence, the HR and the finance team can efficiently leverage the data delivered by the attendance management systems for accurate payroll computing. Furthermore, with the outsourcing process taking significant space when it comes to working, the freelancers and outsourced employee have the scope of getting real-time payments when it comes to standalone projects independent of the enterprise payment cycles.
- Offer increased transparency in attendance-payroll process- The attendance management platform offers individual portals for all the stakeholders in the payroll processing – employees in different departments and at the different hierarchical levels. Therefore, everyone in the system has the ownership of managing their timesheet attendance and leaves.
- Deliver intuitive reports that help identify the compliance gaps- The reports generated by the modern day attendance and biometric systems are smart and intuitive. With multiple filters to arrange and reset the data points, it becomes far smarter and goal-oriented. With such granular data at the fingertips, the finance and the HR personnel can easily locate the gaps in compliance related to employee attendance and working hours. The attendance management systems are powered by smart bots to send notifications and replies through automated emails to the employees to empower them with complete information about leave policies, leave status and everything that impacts the payroll processing in general.