Processing your company’s payroll should be a breeze, but if your payroll department is constantly scrambling from one crisis to the next, it’s a likely sign that your current system no longer meets your needs.
The workplace is constantly evolving, and payroll solutions need to keep pace with these changes. As Ian McAlister, GM of CRS Technologies puts it: “Payroll solutions, along with the vendors who provide them must stay flexible to adapt to changing business and compliance demands.
“Unfortunately, however, many payroll solutions are marketed as current but are built on outdated, legacy technology that falls short of the modern capabilities businesses now require.”
It’s not unusual for payroll administrators to still rely on Excel spreadsheets and laborious manual processes to perform specific tasks, simply because their payroll solution doesn’t offer the functionality they need, he adds.
Frequent payroll disruptions that require manual workarounds not only slow down the process but also significantly increase the likelihood of errors, leading to frustrating delays and frequent queries about late or incorrect salary payments.
“Consequently, unless there is continual investment in research and development to upgrade and maintain the payroll solution, a breakdown is almost inevitable,” says McAlister.
“Add to this an inability to comply with complex payroll legislation and you’re looking at a crisis of epic proportions. Besides the financial ramifications, the reputational damage to your business can be monumental as trust in the company wanes and with it, employee morale.”
Finding a solution that’s future-proof
Choosing the right payroll solution can seem overwhelming, but there are key aspects that can guide your decision.
As McAlister notes, price is not necessarily an indicator of quality or innovation, nor whether a payroll solution will be a suitable fit to a particular organisation.
“When comparing pricing between companies it’s essential to understand exactly what you will be paying for. Bundled packages that promise more for less can sometimes lead to paying for features you don’t need.”
He also emphasises the importance of choosing a system that addresses your current needs as well as future requirements.
“Look for a solution with a developmental roadmap that factors in the shifting technological landscape and aligns with your organisation’s long-term strategy. Mobile computing, artificial intelligence and changing employee expectations on how and when they get paid are just some of the market forces currently impacting the payroll and HR arena, and it’s essential to choose a solution ready for these developments.”
Key components of a reliable payroll solution
McAlister highlights three components which he considers critical to ensuring your payroll is never at risk:
- Security: Owing to the sensitive nature of the information stored in a payroll solution, robust security features are imperative. The correct safeguards must be in place to ensure that data integrity is never compromised.
- Functionality: Equally essential is sound functionality. A good payroll system should handle more than just salaries; it should cover all aspects of payroll and HR and support the entire employee lifecycle, from recruitment to exit.
- Compliance: No payroll solution worth its salt comes without legislative compliance. As tax authorities become more meticulous and HR legislation increasingly complex, companies need the assurance that their payroll solution delivers up-to-date regulatory compliance, no matter where employees are based.
“Ultimately, the best payroll solution is one that saves time, reduces costs and supports a more engaged workforce,” McAlister concludes. “A proven, well-supported and compliant payroll solution is a valuable asset for any business looking to streamline operations and focus on growth.”