Once you settle on a payroll system, it’s easy to sit back and let it do its job. However, while payroll is in its simplest form straightforward, savvy organizations understand there is far more to payroll than a standard payout each pay period. Your payroll system depends on a certain level of technology.
As with any technology, it should be constantly improving, adapting to your needs, and becoming more and more valuable to your organization. If you continue to use old, outdated payroll system software, you miss out on the improvements that can contribute to your efficiencies.
Here are the signs you need to upgrade your payroll system ahead of 2021.
Adapting to the Pandemic
Most organizations have faced drastic changes due to the coronavirus pandemic. For many this includes having a larger team working offsite. Not all payroll systems provide the tools required to track hours for offsite workers. As you face ongoing changes due to the rise and fall of COVID-19 cases, your payroll system should keep up with that demand for you. An upgrade will allow you to adjust remote hour tracking as your workforce changes due to the pandemic.
If your system is unable to provide accurate pay to your team, you are failing them. This can have an extremely negative impact on those barely making ends meet. If you find you constantly face paycheck errors, you are not only impacting the financial life of your workers but also adding more work to your HR/payroll team. Your payroll system should be able to make corrections on either your or your employee’s behalf, so errors are avoided, and the proper checks or deposits are made week after week.
Payroll System Service Failure
Good tech is supported by good customer service. It is not unreasonable to expect your payroll system to be backed up by a team ready to assist should your employees encounter challenges. Your HR department is already taxed with enough workload and don’t have time to deal with finicky systems. If you find you’ve lost the support of your system’s customer service, this is a good sign you need a better software company. No one should be left trying to figure out a glitch in the system, or trying to flip through a training manual to find out how a feature of the system works.
Too Many Systems
The reason you chose a payroll system in the first place was to streamline your HR processes and free up time. If you find there is a disconnect between payroll, benefits, the onboarding process and more, you not only have an outdated payroll system, you also have too many systems. A new system will connect everything for your HR team allowing you to manage:
- Time & Attendance
- HR & Employee Management
- Benefits Administration
- Complete workforce management
This start to finish approach alleviates workload and allows your HR/payroll team to become more strategic and proactive. Which brings us to our next issue: Lack of strategy.
Lack of Strategy
Your payroll team should not just provide basic administrative services. Instead, they should be providing valuable insights that create an HR strategy addressing a long list of workforce challenges including:
- Sick leave
- Cost of overtime
- Improper scheduling for weakened or over-scheduled workforces
- Customer service improvement opportunities
- Lack of effective benefit packages
- Non-competitive salaries
- Employee hour’s stealing
- Proper employee recognition
- Effective career training and growth
All these areas affect your bottom line in some shape or form. Whether it is strictly dollars and cents for stolen hours or loss of talent due to poor administration of employee growth, if your HR team has no time for strategy, your system is failing you.
Poor quality, outdated payroll systems can increase expenses without you noticing. Expenses can include:
- Increased hours put towards support to administer payroll
- Cost for additional storage space for cloud-based systems
- Costs related to inefficiencies of your system such as having to do back up manual entries or counts
- Additional time spent for the HR team to make corrections due to compliance issues not caught by the system
These issues and more can be costing you money without you even realizing it.
Benefits of a New Payroll System
A payroll system update offers:
- Maximized productivity and profits
- Detailed analytics on your employees to identify areas for improvement
- Insights for data-backed decisions
- Improved talent acquisition using an improved applicant-tracking system
- Setting and tracking employee goals and growth opportunities
- Scheduling, attendance, leave, and compliance in one easy system
If you notice even one of these signs, it’s time to speak to a payroll expert like Paypro to make an update before 2021 rolls in.
About The Author
Ingrid is the Content Marketing Manager at Paypro, managing both inbound and outbound marketing initiatives for the company. She has 15+ years’ of extensive marketing communications experience, leveraging brand awareness and strategic partnerships to increase sales revenue for a diverse group of B2B brands.