Payroll automation is becoming the new normal for human resource practices.
Most large companies have moved towards automating their payroll processes using software, and many small to midsize businesses (SMBs) are also opting in to save time and money in the long run.
Here is what you should know about automating payroll in your own business:
Benefits of payroll automation
Many small businesses are reluctant to implement automated payroll strategies for a few reasons. Over half of small companies that do not use automation worry that it will consume too much of their budget.
Others cite inadequate tech support or lack of time as a major concern. These mindsets are understandable; however, in reality, automation could help to fix any of these problem areas.
Therefore, using a cloud-based automated payroll strategy tends to have the opposite effect of improving tech, saving time, and saving money.
Automating payroll has plenty of benefits for any size or type of company. These benefits include:
- Reducing the risk of human error in payroll activities
- Being compliant with stricter financial regulations that could cost your business
- Providing a seamless experience and reducing the number of hours spent on manual payroll
- Allowing employees to use self-service and have more flexibility about how and when they are paid
- Having more transparency, accessibility, and timeliness for both employers and employees
The following are easy-to-follow and important steps to get started with payroll automation:
Overcome initial employee reluctance and fear
Many employees may be hesitant about changing payroll methods because they fear that could mean delayed paychecks or complicated tax challenges.
In reality, payroll automation is meant to and is very effective at making sure the opposite happens. For another, HR employees often feel that payroll automation can signal a lack of job security.
Payroll automation can simply save HR managers valuable time that could be spent performing other job duties. Ensure that your staff knows that automation does not mean role elimination and their job is safe.
Set aside time and staff for optimum setup
As with any smart investment, payroll automation initially requires time and money set aside before it can become fruitful.
Therefore, you should have a strategy for who will take charge of the automated systems and how much time and money it will require.
Once those plans are solidified, adjusting to new technology and inputting tax and account information is only a challenge.
Start with a free trial period
Once you have found the right payroll automation service for your needs, it is recommended to enact a trial period.
Select whatever type of payroll automation works best for your payroll software: online third-party payroll services or cloud-based services.
Most of them will have a trial option. Then, you can identify whether the process fits your specific needs.
Bottle line: automating payroll leads to smoother operations
HR departments often find themselves juggling many different tasks on any given day, payroll among the most urgent.
Automating payroll can allow HR professionals to focus on providing a more safe and stable workplace for all employees.
Find out how payroll automation can ease your workload and bring you up to par with today’s competition.
Have any thoughts on this? Carry the discussion over to our Twitter or Facebook.