The 3 Reasons Why You Need to Update your Payroll Software Today

Apr 7, 2020

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As organisations transition from office to online, it is the responsibility of payroll managers to remain abreast of technology as we transcend into the digital age.  Doing so can ensure that organisations can evolve alongside their workforce maximising productivity and performance across the board.

Access Group’s 2020 Guide to Payroll reports that 93% of payroll managers believe that up-to-date software is ‘essential’ to the running of their department. Yet, over 55% also state that they lack data insights, analytics and integration with other business functions. 

Tech-enabled solutions are moving at a frantic pace and are providing capabilities and functionalities which are ever evolving and are equipped to streamline manual processes and operations. This means that payroll professionals can delegate their time to tasks such as people management, and other creative functionalities as well as broadening their strategic goals.

As a company expands, there is no doubt that payroll software is critical for business success. Organisations are acknowledging the positive impact of investing time, energy and efforts to select and review the best payroll software for their business.

Let’s keep this in mind and consider three reasons why it might be time for you to update your payroll software.

  1. Strategic alignment is the recipe for operational excellence

Payroll often sits precariously on the line between HR and Finance functionalities, reporting directly to one or the other. Procedures may fall under the remit of either department, and in order to streamline communication, manage data security, record keeping, additions and redactions these departments must be closely integrated.

A unified solution that is customised to your company’s business requirements is safeguard in ensuring protection against human error, sharing data securely within the organisation and streamlining business processes. This is especially critical considering recent GDPR regulations that require effective data security management and consolidation.

The use of legacy systems brings the risk of outdated infrastructure, obsolescence and a threat to internal security as it cannot be integrated into other core functions within the department.

Let’s not forget about HMRC compliance. Your payroll system needs to make RTI submissions as simple and accurate as possible, avoiding costly errors that could result in completing multiple re-runs to rectify. This is only possible with payroll software that has been built specifically with HMRC compliance in mind.

  1. Slash time spent on boring admin

Traditionally payroll professionals were a slave to administrative tasks such as managing payslips, crunching numbers and manually filing streams of submissions and returns. This process was undoubtedly time consuming, adding unnecessary stress and manpower to completing mundane tasks, but also heightening the risk of human error during the payroll process.

Now automated payroll software empowers organisations to manage data securely, generate insights and reports, as well as quickly calculating earnings and gross-to-net pay with minimal fuss and maximum accuracy. Vital HRMC tasks such as monthly FPS and EPS returns which were once onerous, have been now been automated, saving dramatic amounts of time for payroll professionals.

With the correct payroll solution, organisations can decrease time spent on the payroll cycle, thus allowing greater accuracy. Using the correct software also enables organisations to access a broader scope of data, using insights and generating reports. These insights help to equip payroll with a stronger voice in the boardroom – according to Access Group this is something that up to 78% of departments are lacking.

  1. Improve your people experience 

Payroll is a central transaction in the employer-employee relationship – fundamental to employee relations and the formation of company culture. [Source: Minute hack]. It’s surprising how many companies seem to let payroll fall by the wayside when examining how they engage talent.

According to ​recent stats​, 39% of UK employees say they have been paid late on at least one occasion, whilst 60% have previously noticed mistakes on their payslips. Frequently these mistakes are due to human error, which is the sum of departments facing challenges when trying to scale in line with business growth.

Now is the time to shake up the traditional views on what workplace culture means. Minute hack have found that companies send a powerful cultural signal to their employees when user-interfaces are modern, easy to use and faff-free.

Of course, it’s great to introduce a snack-bar, or yoga classes at lunch, but consider this – implementing user-focused systems and empowering payroll managers with a platform to voice concerns and discuss improvements is ultimately far more pivotal in maximising employee wellbeing and financial security.

It’s time to shift perspective, because doing so is the only way that payroll will ever go from a reactive function to a key driver of talent retention and sustainable engagement.

CoreHR becomes part of the Access Group

This article is brought to you by the Access Group. Read the original article or learn more about the partnership between CoreHR and the Access Group.

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