We are an HR Tech company making cloud-based HR software for SME businesses. In a recent internal survey we found that business owners prefer automating payroll processes over other HR activities?
Why is there a preference for payroll automation software? We asked. And the answer was plain and clear–
Because payroll involves business owners and startup founders, too. And it is so tedious and complex that they lose much of their time in checking and rechecking, and talking to their HR friends about new compliances.
That’s why they want payroll to be automated, before anything else. But then, they pause. Would they get a good ROI for their small business?
Let’s assure you, the answer is a big, bold: YES!
In this blog post we will start with the fundamentals, and then show you how entrepreneurs save money by implementing a payroll management system. And especially so when used along with HRMS software.
The concept of ‘time-cost’
All big companies implement the timesheet and time tracking module. Because they understand–
Every minute is not just 60 seconds. But 60 seconds of performance!
If an employee attends office for 8 hours but does nothing, his contribution to the organisation is NIL. Even worse, because that time is lost. And add to it the fact that because of his inactivity other workers are also negatively influenced. He becomes a bottleneck to many other workflows.
So the organisation loses his salary of the day as well as the momentum at the workplace. And losses due to low productivity.
Organisations which can get the best out of the work-hours at office are more productive, profitable and achieve growth faster.
Now let’s see how hrms powered payroll helps you save time and money.
1: Streamlining of HR processes
There are multiple reasons why payroll takes so much time. One prime reason, especially in small businesses, is ill-defined policies, processes and workflows. For example, what is a half-day? And what kind of grade structure is in the company? Who gets the overtime? And how much?
When things are arbitrary, calculations get muddled up.
Implementation of HRMS and payroll software compel us to define policies and processes. Once the processes are clean and documented, things become a little easier to handle. It saves time. In the business world, it literally means–Money for the organization!
2: Automation makes the complex simple!
It is true that payroll is complex. But let’s see why it is complex?
a: It is complex because there are too many details, grades, compliances. And it is not possible for a single person or a group of people to keep updated about all these details.
b: It is complex because it involves multiple departments. HR, payroll, line managers, as well as accounting.
c: Details coming from all these departments are in multiple formats. Leave applications, Excel sheets, attendance registers.
Now, juggling with these details, cleaning them out, merging duplicate data is painful. And monotonous. And then uploading them on desktops. All these tasks are prone to manual errors. And it affects the accuracy of the payroll process.
An HRMS and online payroll software simplifies the complexities on all levels.
The software ‘knows’ all the grades, workforce categories, and organisation rules and regulations. Plus, all formulas are pre-fed and calculations are done by the machine.
It shortens the payroll work cycle. The involvement of senior management is minimised. Payroll errors are minimised, and accurate payroll can be generated quickly.
So, the payroll team can generate the payroll at any given day. Guaranteed.
3: Dynamic update of compliances and other details
A good payroll software offers more than just software. It would offer you advanced features for compliance. For example, Opportune Payroll updates the compliances automatically! And once the details of the workforce are in the software you don’t need to worry about it.
New people join the organisation? Old employees exit? Someone got a promotion? The government has changed certain statutory compliance? The HRMS takes care of all these details and payroll generation can go on as usual.
4: Employee self-service portal and Mobile App save productive time
Employee self-service portals save a lot of time-cost because employees can update their own details, and can refer to their payslips, taxation, investment declarations etc themselves. It saves the organization’s productive time which would otherwise be spent in trivial interactions between employees and HR team.
Employee engagement scores improve. It contributes to better performance management.
5: Cost saving by accurate contractor employee billing
HR veterans believe attendance management and payroll solutions, working in tandem, can save a significant amount on contractor employee billing. Either happening due to inefficient manual attendance or due to malicious intent.
6: Enhanced analytics and reporting
With HRMS software, we can generate detailed reports and analytics related to human resource costs and budgets. These reports provide valuable insights into labour costs, overtime expenses, tax obligations, and more.
Learn How HRMS Software Helps To Track Employee
By analysing this data, business owners can make informed decisions to optimize their payroll operations and identify areas for further cost savings.
So, we can say:
HRMS and cloud-based payroll software is a time and cost saving boon for organisations. Because–
- Small teams can generate accurate payroll, in less time. Saving on employee salaries.
- Business owners and Founders aren’t involved. The organisation saves on their time-cost. Which happens to be enormous.
- Error-free payroll saves a lot of time-cost on checking and rechecking, as well as actual money.
- Adherence to compliance saves real money by avoiding any fines (And in some cases even litigations).
- Owners don’t become a bottleneck for other functions during the payroll cycle. Which adds to more time and cost savings for the organisation.
- Employee self-service portals save the productive time of organisation.
- Saving on contractor billing saves real money for organisation.
HRMS and Payroll save time and money!
Saving because of streamlining of HR processes.
Savings because of enhanced productivity and speedy work because of automation.
Saving due to avoidance of errors.
Savings by avoidance of compliance-related fines.
Savings by accurate billing and organisational competency building.
Savings by payroll analytics and insights.
Cloud-base solution saves a lot for the organisation by streamlining of payroll and HRMS processes. Benefits of payroll software are many. Error-free, accurate payroll frees the business owners from the painful payroll generation days, and hassles of legal compliance.
By saving time, ensuring accuracy, reducing costs, empowering employees, and providing valuable insights through enhanced reporting and analytics, HRMS software can revolutionize your payroll operations.
So why not consider implementing a human resource management system (HRMS) and experience the time and cost savings first-hand?