How to choose the right payroll solution for your business
Processing your company’s payroll should be a breeze, but if your payroll department is living from one crisis to the next, chances are good you’ve outgrown your payroll solution.
The workplace is constantly evolving and payroll solutions, together with the vendors who provide them, need to be flexible enough to keep pace with these changes.
Unfortunately, however, many payroll solutions are presented as current but are characterised by outdated, legacy technologies that fall short of the modern capabilities needed to meet changing business and compliance requirements.
It’s not uncommon for payroll administrators to rely on Excel spreadsheets and laborious manual processes to perform specific tasks, simply because their payroll solution lacks the requisite functionality.
Ongoing payroll disruptions that necessitate repeated manual intervention significantly increase the likelihood of errors. These are not only time-consuming to correct, but turn paydays into an organisational nightmare of never-ending delays and queries about late and inaccurately paid salaries.
Consequently, unless there is continual investment in research and development to upgrade and maintain the payroll solution, a breakdown at some point is inevitable.
Add to this an inability to comply with complex payroll legislation and you’re looking at a crisis of epic proportions. Besides the financial ramifications, the reputational damage to your business can be monumental as trust in the company wanes and with it, employee morale.
Cutting-edge payroll solution
So, how do businesses ensure they choose a cutting-edge payroll solution?
Price is not necessarily an indicator of trailblazing innovation, nor whether a payroll solution will be a suitable short-term fit to a particular organisation. This being said, when comparing pricing between companies make sure you understand exactly what you will be paying for. Some payroll solution providers offer bundled packages that include ‘more for less’. Be careful that signing up for one of these won’t mean ultimately paying for more than what you need.
It’s also important to look for a solution that not only meets your current payroll requirements, but also incorporates a developmental roadmap that takes into account the shifting technological landscape while aligning to your long-term organisational strategy.
Mobile computing, the fourth industrial revolution and changes in employees’ expectations over how and when they get paid are just some of the market forces currently impacting the human resources and payroll arena, and it’s essential for companies to ensure that the solution they choose is on top of these developments.
Three payroll solution components are critical to ensuring your payroll is never at risk.
- Security: Owing to the nature of the information stored in a payroll solution, robust security features are imperative. The correct safeguards must be in place to ensure that data integrity is never compromised. This includes leveraging the best benefits of hybrid cloud computing.
- Functionality: Equally essential is sound functionality. The payroll solution you choose should encompass all aspects of the human resources and payroll function and be capable of managing the entire employee lifecycle, from recruitment to retirement.
- Compliance: No payroll solution worth its salt comes without legislative compliance. As tax authorities become more meticulous and human resources legislation increasingly complex, companies need the assurance that their payroll solution delivers up-to-date regulatory compliance, whether the employees are deployed nationally or internationally.
Finally, when it comes to finding the best payroll solution for your business, companies should look for a system that will save time, reduce costs and facilitate investment in engaged employees. A proven, legislatively compliant and comprehensively supported payroll solution is the first step to achieving this objective.