I believe payroll is one of the most critical processes in a company of any size. Its importance does not waver for a company of 5 employees or 500. It needs to be right the first time, every time. Those who work in payroll are generally pulled in a lot of directions and have a hectic work life. That being said, payroll people need a system that is intuitive, efficient, and has checks and balances built in to alleviate any unnecessary stressors. Wouldn’t you want to have your system be as efficient as possible? Efficiency can mean a lot of different things; it could mean time, it could mean effort required, it could mean cost. This blog will question each of those aspects and find out if the answers necessarily mean you need cloud-based payroll, timekeeping, human resource management software.
How Much Time are You Spending on Payroll?
Do you have a system that auto updates new employees, pulls employees’ times from time clocks, reduces data entry or lets you see who’s getting close to overtime and who is not? Having a system that allows you to do all of this makes your job easier and less stressful. Entering the same data three different times because the software isn’t integrated with itself may not seem like a huge deal but imagine if just hitting a button pulled an employee’s time, put it into the payroll, took out any garnishments, deducted any benefits and did this for every employee instantaneously. It becomes clearer as to how well integrated and automated software saves a huge amount of time.
If you’re not using cloud-based payroll software, the answer is probably ‘too much’. Are you spending time printing off physical checks instead of using direct deposit? Not only does this take less time and money, using direct deposits ensures your employees are getting paid right on time, every time. Do you have to manually collect time sheets and enter them to run your payroll? Heck, do you have to do any repetitive, manual, data entry? Payroll software that is well integrated with timekeeping and human resource management removes the need for these repetitive tasks.
How Much is Running Payroll Costing You?
Are you or do you have an employee that is dedicated to doing the payroll every week? Imagine the costs you’re paying to do repetitive tasks that could be done in half the time. Having people not being as efficient as they could be costs your company money and time that could be better utilized doing other tasks.
Dealing with overtime is (or should be) a huge deal to a lot of companies. Almost 55% of people in the workforce have jobs applicable for overtime. The costs associated with excess overtime are more than just paying your employees time and a half. Costs such as healthcare, reductions in productivity, and an increase in worker fatigue are all as serious, if not more, than higher paychecks. Knowing when you’re approaching a potential overtime issue and having a plan in place for that situation makes running payroll at the beginning (or end) of the week a breeze.
How Much Effort Does Running Payroll Take?
Think about the end of the year, what’s gathering up W2s like? Hectic? Insane? Using cloud based payroll automatically tracks any relevant information, so at the end of the year you can either print out perfect W2s yourself or allow your employees to access their own through an Employee Self Service portal.
What about figuring out who’s on and who’s off for the week with all the time off requests you’ve been getting? Cloud-based payroll software reads all of the requests for time off and alerts you to any discrepancies when you are setting the schedule for the week. Are you keeping all of your employees’ HR information in a file and when you need to find or reference it, it is nowhere to be found? Using a cloud-based payroll/HR solution allows you to manage health insurance, handbooks, policies and other employee info.
How are You Storing Your Payroll Data?
This is one of the most critical questions you can ask yourself. Using a cloud-based payroll software
ensures that not only is your data accessible at any time, it’s also in the safest place it could be. This is one of the biggest hurdles companies have when adopting cloud based payroll software. How could their data be safer on servers miles and miles away as opposed to on their own data centers? Storing your data has always come with risks. Save it on your hard drive and you risk accidents or people who know your password getting access to information they shouldn’t. Storing on your network risks someone getting on to the network and accessing your information. Storage via the cloud seems like the most dangerous but can often be the safest choice for you most critical information.
What this boils down to is greater economies of scale. Managing terabytes or even petabytes of information takes a very high degree of expertise and talent. That expertise and talent means that companies who utilize cloud storage not only know how to store all of this data efficiently, but extremely safely.
Think about it like this, there’s a reason Wal-Mart can have the most selection for the lowest prices, they’re big enough to dictate when, how, and for what price they get all of their goods. The same idea transcends to cloud storage; Wal-Mart goes to extraordinary lengths to ensure people don’t get sick when they eat their food; companies that offer cloud storage go to all lengths to ensure people don’t lose or have their information stolen.
Whether or not you need a comprehensive payroll system is totally dependent on your industry, employee size, current payroll process and other variables. The objective of every department at a company is to increase efficiency (or dollars) while reducing cost and payroll is no exception.
If you would want some more information to see if cloud based payroll software is the right choice for you and your company, follow the button below to talk to someone at Dominion Systems!