Understanding the requirements of a digital payroll

Requirements of a digital payroll

Contrary to popular belief, migrating to a digital payroll solution is not simply a case of copying and pasting data into a cloud environment. According to Ian McAlister, General Manager at CRS Technologies, there are system-wide dependencies to consider, especially when it comes to accessing databases and other dynamic information.

The importance of an effective payroll system is crucial to the success of any organisation. It is considered one of the biggest factors behind employee engagement and morale. As such, it is vital for the organisation to get the transition to a digital payroll system right or risk alienating staff.

“Streamlining the process and making it as least disruptive as possible is critical to the success of a migration. There are several factors which businesses should consider to be at the forefront of payroll technology and ensure they are still compliant with all the regulatory requirements, especially when it comes to maintaining the security and integrity of sensitive data,” says McAlister.

As a first step, the company must look for a solution that not only meets current human resource and payroll requirements, but has a development environment that can adapt to evolving trends. This is especially important given how quickly working conditions can change thanks to the uncertainties created by the COVID-19 pandemic. To help cater for an increasingly distributed workforce, the payroll system must also be mobile-friendly so employees can access it from a variety of devices.

A digital payroll system is not something that is installed and forgotten

“However, a digital payroll system is not something that is installed and forgotten about. Business leaders need to be committed to continually research, develop, and maintain the system as organisational circumstances change and technology evolves. As such, the digital payroll solution must be scalable and flexible to cater for any changes in the operating environment while still adhering to compliance requirements,” says McAlister.

Even though there is no singular approach when it comes to the adoption of a digital payroll solution that applies to every company, there are still certain universal requirements to consider that contribute to a successful project.

Having defined service delivery and operating models in place become an important foundation on which to build a digital payroll function. Furthermore, aligning the reporting function with payroll can positively impact how strategic initiatives are actioned. Strong governance methods can also improve the results when it comes to processing the payroll, whether in hosted or on-premise environments.

“When it comes to selecting a payroll solution that best reflects the digital requirements of the business, there are several aspects to consider which will also help prepare the organisational environment. These include robust security features to safeguard the sensitive information stored in a payroll system. If the organisation is global, the payroll system must not only meet legislative compliance requirements in its home country, but that of every country in which it is operating. Perhaps most crucially, the digital payroll environment must be capable of managing the entire employee lifecycle, from recruitment to retirement,” says McAllister.

Throughout this, it is essential to identify a trusted partner capable of delivering a system that invests in engaged employees while delivering all the payroll and human resources functionality required for a growing organisation.

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