The previous year witnessed immense growth in payroll management, and this year will be no different. Payroll management is an integral part of the company, and it needs to remain in the best shape. A lot of companies believe in outsourcing their payroll to achieve the best results.
Payroll management is more than just scheduling out paychecks. With modern technologies shaping the human resources department, here is a look at how the payroll trends are evolving in 2020 and how you can effectively adapt to them.
1- Automate Your Payroll
This era of digital industrialization emphasizes the importance of automation. It’s not just the product lineup that you should be automating. Everything from sending out newsletters to sending out paychecks is also under a dire need of automation.
Manual payroll has almost come to a halt, and there are hardly any companies out there where someone is personally moving out to hand the employees their monthly compensation. Automation has several advantages over traditional methods, which are:
- Automated payroll is less prone to errors when compared to manual payroll. The calculations involved can be intense when it has to be done manually.
- Automation makes the payroll process extremely fast and efficient. It is known to reduce payroll time significantly.
- Timekeeping can be done efficiently, which includes the calculation of compensation given to each employee depending on the hours they have dedicated. This will consist of overtime payment and deduction in the case of time shortage. With automated timekeeping systems like biometric or RFID, the chances of errors are reduced to almost nil.
- Automation can also be cost-effective in many cases. If the number of employees of a company involved with payroll management is plenty, an automation system can prove to be cheaper and faster.
- Automation will also avoid any delays. No delays will ensure the employees are always happy and don’t have to go through any extra trouble because of something that’s not their fault.
2- Keep track of Your Employees and Improvise
Identifying the top talent in a company and retaining them is the key to keeping the company ranking high up the charts in all indices. Continuous monitoring of data is the best way to analyze the performance metrics of each employee and compensating them appropriately.
Many SaaS agencies help with people’s analytics and data-driven decisions to make the best of the available resources.
- Data Analytics is a growing field and can be used in payroll management, as well. The data such as target completion and leaves are taken can be collected through automated systems
- Tracking Key Performance Indicators has been identified as one of the most important things to understand your employees better and compute various data related components like processing time per cycle, incomplete payments, and the possible errors that might occur.
- While tracking is the key, constant improvement is needed to make the best of it. The best thing to do is to merge similar processes to give the best to your employees. For example, the HR and payroll need to be unified. Otherwise, each process going on in one corner is going to make things very inefficient.
- Outsourcing the analytics needs can be one of the best possible solutions to overcome the problem because hiring in house analytics team can sometimes be costlier and not be feasible for some small companies.
3- Step up the Security
Undoubtedly, security and safety is the most crucial parameter in the age where cybercrimes have become so common. Luckily, this year’s focus is going to be on the protection of the payroll data, and this is being commonly employed in various companies.
- The payroll software and tools available are fairly secure as they are password protected and have various levels of encryption to ensure nobody can breach it.
- Automated security also means there are no papers that can be left lying around, and the risk of it getting into the hands of the wrong person is eliminated.
- Since the system will make sure that no double entry is present, the account of the company is safe, and any losses in terms of duplicate transactions cannot take place.
- SaaS makes sure that any payroll software provided to a company is void of defects and cannot be broken into.
While these trends are what is expected in the upcoming year, nobody can be 100% sure about the future, and that’s why adaptability is essential. All systems and tools that are being used should be interoperable and flexible to adapt to upcoming technology.
Staying close to these trends is going to be one of the best things for the payroll management of your company, and you can enter the new year prepared with the best of knowledge.