An Ernst & Young survey found that more than half of the businesses surveyed stated a need for major improvements in their payroll processes. The most common challenges faced by payroll managers included organization wide inconsistency within payroll processes, error-prone taxes, and managing over-time payments.
Payroll management takes up a considerable chunk of time for any HR department. Companies stuck in paper-based payroll processing often get blindsided by silos and ineffective processes that become a pain for HR leadership. Transitioning to an online efficient payroll system like IFS has therefore turned out to be a necessity for companies that want to streamline their employee and payment processes.
5 Major Challenges Facing Payroll Management
Here are five of the most common payroll management challenges faced by organizations doing payroll in-house, and how to work around them.
1.) Manual Administrative Processes
Most small businesses start by carrying out their payroll manually. However, manual errors and extensive paper trails take their toll when your company starts growing and increases administrative burden on your HR Department. Something as small as a data entry error can quickly snowball into payment errors and misuse of rules. An effective payroll management software like IFS Applications can be a great solution to automate payroll and cut-out human errors. It also negates the need to hire extra staff to handle a growing number of manual processes.
2) Lack of a Centralized Information Center
Organizations using no or disparate software to manage employee information often suffer problems like ineffective workflows and patchy filing processes. Integrated payroll management software like IFS Applications for Human Resources increases visibility of all HR processes and facilitates better management.
3) Multiple Software Suites
While some organizations get unstuck by not investing in any software, some go to the other extreme by investing in too many software suites to manage different processes like employee profiles, employee benefits, employee taxes, etc. In such cases, managing these different software suites becomes a challenge in of itself, and your cost grows by investing in multiple licenses and teams. Using one integrated software for HR like IFS Applications can help you bring together all processes under one suite.
4) Leave Management and Attendance Management
Tracking your employee attendance and leaves can quickly get tedious without proper guidance. Manually keeping a record of your employee leaves, vacations, or attendances keep you open to misuse or unplanned errors that impacts payroll payouts. Again, using a robust payroll management software can go a long way towards streamlining leave and attendance management through automated tracking capabilities.
5) Regulations and Compliance
As technology has grown exponentially over the past few years, we have seen a stricter implementation of regulations and compliance measures by various governments and regulatory bodies. To that effect, Google recently had to pay €50 million in fines for a GDPR violation in France. Failing to comply with rules can have serious consequences for your business. Integrated HR management software like IFS Applications come pre-built with features to comply with regulations based on your region or industry that can save you from expensive fines during audits.
As you can see, managing your HR and payroll without a robust HR application can get near impossible as your business grows. IFS Applications can help you bring together different processes within your HR and payroll that builds an efficient experience for your employee, and HR team.
Ready to streamline your payroll management and create an efficient HR team? Give us a call at ProV.
ProV offers one of the best IFS Applications pricing and provides best-in-class services for IFS implementations, IFS software support, and IFS customizations. We are a multiple award-winning partner for IFS products and services that help simplify implementation, integration, update, or customization of your software when you need it most. Take our FREE Consultation today to get started!