4 key pain points that your payroll processing system needs to address
It can’t be understated that effective payroll processing is one of the most important aspects of running a business well. The paycheck is the main reason that people show up to work each day, and with this in mind, it’s imperative that HCM leaders consider investing in better payroll technology. You want a solution that’s quick, painless and is guaranteed to retrieve accurate data every single time you need it. A tool like that is worth putting some money into – you’ll absolutely recoup your investment in the form of a productive staff.
Unfortunately, it’s not easy to invest in new payroll technology – doing so requires first making room in the budget. It’s up to the HR leadership to go to the corporate higher-ups and make the case for moving money around and devoting some to payroll.
Making that business case can be difficult. Part of the problem is that corporate leaders tend to consider investments like this only when the company has clearly outgrown the current process (or if the incumbent vendor has stopped supporting a legacy product). It can be difficult to prove that an established solution is past its prime and needs to be replaced.
Jayson Saba, VP of Strategy & Industry Relations at Ceridian, recently discussed this issue in his article “Compensation Via the Cloud” via HRO Today. He noted that even though cloud technology is making it possible for many organizations to upgrade payroll solutions rather easily, HR is still having some difficulty conveying that business case to the C-suite.
“Regardless of how difficult the current payroll process might be, it’s still challenging for many HR leaders to build the business case for improved payroll technology. Corporate leaders tend to approve these investments only when the company has outgrown the current process—through organic growth or a merger/ acquisition—or if the incumbent vendor has stopped supporting a legacy product,” said Saba.
According to Saba, the solution is to start with the pain points. What are the difficulties with the current payroll process, and why does your company need to shore them up?
The following are four issues that companies today typically encounter with legacy payroll processing solutions.
Is your solution currently making mistakes processing people’s paychecks? Even if they’re rare, they’re still significant. If you’re messing up your employees’ compensation even 2 percent of the time, that’s a major issue that needs to be corrected.
It’s also a problem if your payroll tools are old and outdated because, chances are, that means they’re also slow. If you’re spending too much time on payroll, you’re missing opportunities to improve other aspects of your organization. Being quick and efficient with payroll is important.
Managing your payroll involves a lot of expenses. You have to think about software, hardware, printing paychecks and the labor of accountants and HR employees. If it all adds up to be too much, it might be time to seek out a more manageable solution.
Finally, you have to think about compliance. Local, state and federal laws governing employee compensation are always changing, and you need a solution that can help you keep up with all of them. If you don’t have one already, then start shopping around.
Learn how Dayforce Payroll can get you the visibility and compliance you need for payroll processing.