10 Reasons Your Business Needs HR and Payroll Software

What is HR payroll software?

HR payroll software is a solution that maximizes efficiency and minimizes costs by merging both HR and payroll activities into one centrally managed platform.

What type of business needs HR payroll software?

When it comes to HR and payroll management, any business with more than one employee should acquire at least a basic payroll system to automate the employee payment process.

How should I choose an HR Payroll software solution?

Most of the HR payroll software solutions available on the market are mature and offer similar functions and features. Because of this, your choice of HR payroll software depends less on what features any one solution might have, and more on the specific needs of your business.

  • Create a strategy for assessing organizational needs. The ideal HR payroll software should be suited to more than just the needs of the HR and finance departments. Develop a comprehensive strategy for assessing which HR payroll software features would be considered absolutely necessary versus those which would be just wants.
  • Identify potential service providers. This should be done with the help of rigorous research, from market reports to suggestions from other companies to ensure you are picking a high-performing reliable service provider.
  • Assess the cost implications the HR payroll software would have for your business. Is a free trial available? Is the price per employee subject to changes in company size? Does the service provider charge on a pay-per-use basis or per user?
  • Set up an evaluation committee. By this point, you should have settled on the final five or so contenders. The evaluation committee will be tasked with comparing the features of each HR payroll software solution with the company’s needs in order to select the best option. They will also provide a comprehensive request for proposal (RFP) seeking bids from the HR payroll service providers.
  • View demos and select the final option. After receiving the RFP responses from the service providers, the committee will invite them onsite to make demos of their respective products. This will then guide the committee’s final decision on which HR payroll software solution to go with.

Why does my business need HR payroll software?

The most obvious benefit that makes HR payroll software so attractive to businesses is its elimination of the need for separate HR and payroll systems. This comes with great cost and time benefits that are sure to improve company functioning and profits.

Increased efficiency

HR payroll software allows you to automate the tedious repetitive tasks that do not need regular human intervention while also automatically delegating those that do to team members. The system can send automated emails to managers reminding them to approve employee time-off requests, streamlining communication.

Seamless consolidated reporting

Payroll reporting can be a time-consuming and difficult process. In the traditional setting of separate HR and payroll systems, employee data required for making consolidated reports originates from different sources in different formats, with different fields and definitions.

Highly customizable software

The market is saturated with a breadth of HR payroll software options. Many of them are available as off the shelf, one-size-fits-all packages that provide basic HR and payroll functions. Although these options may appear cheaper and quicker to implement, they may not be the best fit for your organization’s unique needs.

Enhanced employee experience

According to research by Qualtrix, only 53% of employees globally report feeling engaged at work, and yet businesses, where employees are more highly engaged, have almost three times more revenues. This means that, for a business leader with their company’s best interests at heart, the employee experience cannot be ignored.

Improved compliance

Compliance breaches are a major concern for most businesses. They come with hefty fines and negative public relations that can be damaging to your company’s reputation. Therefore, it is imperative that your finance and HR departments remain up to date with current laws and regulations and ensure all necessary documentation is in order.

Remote connectivity

With more organizations adapting to full-time remote work for many of their employees, it is crucial for your business to have systems that allow remote access to employees working in different locations. Cloud-based HR payroll software offers remote connectivity to employees.

Employee self-service portals

Employee self-service (ESS) portals are cloud-based tools that allow employees to access information through a central gateway. Most HR payroll software solutions offer these tools as part of the overall package. Through the ESS portals, employees can view their own payroll, schedules, and benefits records from anywhere, at any time. They can also make updates to their own details.

Real-time feedback

Traditionally, organizations offer biannual or annual appraisals of their employees to review their performance and progress. The process is often time-consuming and not always an adequate method of assessing employee performance. To rectify this, businesses are adopting real-time feedback, which helps to keep employees in a consistent loop of performance assessment, progress monitoring, and feedback in small portions.

A controlled flow of information

With an in-house HR payroll system, you can control the flow of company information without being concerned about external data leaks. Because your HR payroll system contains a lot of extremely sensitive information about your company and employees, it is vital to keep this information secure.

Future-proofing the business

Growth and change are a natural part of any organization’s journey. This usually comes with amazing opportunities, but they are often accompanied by challenges with new HR procedures, increased staff numbers, and new payroll requirements and regulations.

Conclusion

In the aftermath of the COVID-19 pandemic, organizations are going through a rebuilding process that centers on technology. Companies that have not changed their approach to human capital management over the past two decades are struggling to keep up with the rapidly changing pace of digital transformation. To stay ahead of the curve, it is imperative that businesses adopt tools like HR payroll software to create a more holistic, strategic, and future-proof human capital management strategy.

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