Payroll is among the most important responsibilities of any HR department. Without an effective system for ensuring employees are paid the right amount at the right time, your workforce will quickly end up demoralised. This can lead to a loss of productivity, absenteeism, and high levels of staff turnover.
By implementing the right processes, you can avoid all of these problems. This way, you’ll earn the trust of your employees, and benefit from the resulting productivity gains.
So, exactly what does an effective payroll system look like? Let’s consider a few worthwhile modifications.
Simplify tasks with technology
If your workforce is sufficiently large and complex, then it might need an entire team of administrators to oversee. This can present a considerable administrative burden, as well as increasing the scope for human error.
There’s a natural place here, therefore, for automation and other time-saving technologies. You might use software to record employee data and to issue pay slips automatically. This may eliminate several opportunities for error, which will in turn help you to remain compliant with regulations.
This approach also has the advantage of freeing up your human HR workers for other tasks that might require more deliberate care and attention. Ideally, you’ll incorporate an all-encompassing payroll software package that supports real-time processing, emergency payroll, and other important features.
The nature of your business will often dictate the requirements of your payroll system. If you need flexibility, for example, you might look for software that can be easily modified from one week to the next.
Improve employee access
When your employees have access to detailed information regarding their pay, and your payroll systems, they’ll tend to be happier. Ideally, every payslip should break down wages, tax-free allowances, and national insurance contributions. They should also provide data on how much taxable income has been earned in a given year, and how much annual leave has been taken.
Maintain accurate records
The more information you have on your payroll history, the more easily that information can be accessed, the better. Having information to hand will help you to resolve disputes and correct mistakes. This means logging tax codes, wages, hours, and benefits. Through software, you can record this information with minimal administrative cost. This will make your life much easier in the event of an audit.
Stay up to date with legislation
We should finally mention the fact that the law surrounding payroll is constantly changing. Sometimes, the changes are major, and attract the attention of the national press. In other cases, the chances might be more subtle. Stay on top of news related to HR, and employment law more broadly. This is where the value of dedicated HR staff can be considerable – and the same goes for consultants and advisors from outside the company.
