The payroll department is not just a processing function which only ensures employees get their salaries on time, it is way beyond that. The payroll department and the way it functions plays a vital role in protecting the company’s reputation by ensuring compliance with various legislations. We all know HR has now moved into becoming a core business function, rather than just a separate function that deals with certain activities within an organization. At the same time, the fundamental components of an organizational functioning continue to remain the same, especially in the Indian context. One such example is payroll, which continues to and will remain an integral part of all organisations.
A manual approach to taking up the payroll function can be daunting. However, the age that we live in has given us access to a number of technologies that make our lives easier. There are a variety of payroll software in the market that empower the finance department to take care of their duties in a hassle free manner, without the need for any prior technical knowledge. Keka has been a pioneer in this field that has made the payroll process for a lot of companies hassle free.
As organizations battle to find and retain great talent, the payroll software that they deploy can determine their engagement levels to a great extent. In this blog, we have charted out the top 5 benefits that any organization invariably enjoys with a cloud payroll software.
1. Accurate and timely payments
The latest on HR is talking about how the human element is going to become a major part of HR strategies. Ensuring a fruitful employee experience is what serves as a top priority for most agendas in business rooms today. Payroll has a huge impact on the morale of the employees as it is one way to assure that employees remain confident that their pay is going to be credited on time. A late, inaccurate or faulty payroll has the potential to disrupt the peace of mind among employees, leading them to lose faith in the financial stability and commitment of the organizations they work with. With such doubts hovering around the minds of employees, the entire work culture might get affected negatively making employees feel disengaged and frustrated – which will make employees unproductive and ultimately affect organizations hugely.
2. Higher employee engagement
A payroll plays the critical role of allowing an employee to feel his/her net worth within an organization as it not only mentions the salary, but also total compensation that includes bonuses, reimbursements, benefits and tax related information incorporated into the payroll. Performance evaluations reward employees with a change in this compensation structure usually with a fat bonus or a salary increase, or both. Such monetary rewards motivate and inspire employees to do much more and contribute their best. An effective payroll software can bring all of this under one umbrella, leading to better management.
3. Ensures trust
An efficient payroll system can help organisations build a level of trust among employees by ensuring an effective deployment of activities on time that adheres to the country’s tax obligations and complies with employment legislations. The efficiency of understanding the complicated tax structures, obligations and upholding of legislative laws in a seamless and proficient manner can help organisations build their reputation in the minds of employees as stable, professional and as a result, extremely efficient. Along with this, the data that goes inside such a system is highly confidential which is why the issue of security becomes most important. With such critical processes being set in place, it will help enterprises attract and retain the right pool of talent to the organisation.
4. Customised solutions
When employees are paid correctly, they feel much more valued and engaged. There are employees who join anywhere in the middle of the month. For such a situation, organizations need to have a system that takes count of this automatically so that there are no rooms for error in processing the right payment for the right number of days. Any error on this part might end up making the employee feel that they have not been compensated accurately, or in some cases make them feel as of “less value.” This can be very disheartening and payroll departments that take care of such minute details are sure to win employee hearts all the way.
5. Allows for greater transparency
The most important tenet in order to ensure a great employee experience is transparency. It is not longer just about the overview that employees want to know of. Employees today want details of each and every variable that may be impacting their pay. Issues like overtime or taxation limits need to be included in detail in the compensation structures for employees to take heed of whenever they wish to. All levels of opacity need to be done away with as only then will employees t able to have full faith in the organisations that they work for, which will positively impact their productivity levels. Choose a payroll software that empowers your employees to have access to their critical information at the touch of a button.
Long story short, the payroll department needs to be taken more seriously as it can give employees a bird’s eye view of the culture, branding, level of professionalism and financial stability of a company. In the current business world, culture matters more than ever. As such, the more streamlined these processes become, the better it is for organisations in the long run. Payroll should not be a pain for either the finance department or the rest of the employees. Companies need to start investing in cloud payroll software that not only automates the entire process, but is also safe and secure and makes the payroll experience a non tedious task for the finance team every month.