This blog post was written by Mariam Kessell
Payroll Process: Avoiding Mistakes
Like every other employee in his company, Sameer Juan had been waiting for this day. It’s payday! Every business owner and company know that their employees look forward to it. For Juan, this third pay slip is supposed to include all the expenses that he had incurred in the previous month. There were medical bills, traveling expenses, and a one-night stay at a three-star hotel in LA, all of which are supposed to be reimbursed in this month.
The paycheck arrived but without the inclusion of those expenses. He was disappointed and informed his HR team, to which they replied, “we’ll do it next month”.
There are certain things which are meant to be done with full concentration and preparation. One of them being Payroll processing. This is a series of interconnected activities and any HR team must avoid improvisation. Thus, it has to be precise and accurate, every month. Even the smallest mistakes can make a big loss for a company – including employee turnover.
You can put pressure on your workforce, forcing them to work beyond their limits. But, they won’t tolerate someone messing with their paychecks!
Is Your HR Team Aware of This?
Some things have to go wrong in order to go right. And the point where you can actually realize why your employees are disappointed is when you need to make a change! With a bad payroll processing system comes mistakes – and a lot of them.
Improper paperwork system: Precious time is wasted when searching for the right documents.
Not maintaining a backup: In case you have not backed up your employees’ data, it could cause serious damage to the company in terms of money and time.
You miss deadlines: If you aren’t able to keep up with the schedule, then it is time to think about and set up a new processing system.
Poor data entry and record keeping: When there is no clear structure in the payroll processing system, mistakes will occur without knocking on the door.
Outsourcing Your Payroll System
Traditional forms of payroll systems are becoming a pain these days for the business owners and companies who still use them. These are time-consuming and tedious tasks that may require a lot of corrections if not processed appropriately. If you run a small business and your primary focus is to grow it over time, how will you manage a complicated administrative work process that requires a substantial amount of time? This will eventually withdraw your focus from the core business and you will be left with a huge pile of paperwork. Employees expect you to produce accurate payrolls, but an antiquated system makes them hesitant to believe that you will do this task accurately.
Ready to streamline your payroll processes? Request a demo to see what Dominion can do for you!
What It Costs You
Most companies process their payrolls either manually or with a little help from software. To completely process a payroll-run for each month, they have to spend between five and fourteen hours, if done manually. And this is where the most mistakes happen, which can cost the company a lot in many ways. First, they lose more time in correcting those mistakes which could have been avoided by using an automated processing system. Secondly, this affects the employees in the organisation. They start to withdraw their faith in their employers because of HR’s mistakes. While this is something that can be forgiven, it cannot be tolerated by any employee for long.
Make Life Easy
It certainly has gotten a lot easier to process accurate payrolls more efficiently. This is an essential task and something companies HAVE TO DO. There’s a lot of pain involved with the traditional payroll processing system and they can only be eliminated by outsourcing a fully-automated payroll service. This not only allows you to grow your business but also alleviates you from wasting precious time, resources, and money over this tedious task.
For students who are pursuing HR courses, payroll processing is one of the most important topics that they should be aware of. For your HR team, outsourcing a payroll system can guarantee a better and increased control over time and money, allowing them to have sufficient space for other equally - or more - important tasks.
HR courses these days teach a lot about the various practices used in a payroll processing system. Many students who pursue these courses often get stuck at some point in writing assignments or learning this vast concept for their examination. To allow them to get over their challenges, an HR Assignment Help service has been found to be the most accurate solution. After all, who would'n’t want to land a good job?