When it comes to evaluating how successful your company is, what factors do you consider? Most business owners observe individual aspects such as sales, to determine how well they’ve performed during a certain period of time.
However, one such nuance that is underestimated for this endeavor is payroll. A routine business function that pretty much goes through the motion every month, the payroll system of any company is simply seen as a medium to facilitate the payment of salaries, and nothing more.
What if we told you that it was well, much more than that? Modern payroll software has come a long way since the days of marking attendance and calculating wages. It’s now a holistic system that can generate in-depth reports, adapt to shifting software environments and even enable you to pay your employees through your mobile, if you can’t get in front of your desktop on time.
So how are out-of-date payroll systems negatively impacting your business, without your knowledge?
1. Old payroll systems don’t measure trends or report them.
As benign as it may seem, your company’s payroll cycle is capable of reflecting much about the performance and cost-effectiveness of your business. This means that regular reports from your payroll processing software can contribute to broader areas such as mapping top and bottom line growth.
Other key pieces of information can include compensation reports, which comprehensively display all forms of compensation an employee may have received during their tenure of employment – in the form of charts and diagrams.
Reporting features can also calculate insightful statistics such as the average wages of employees within varying designations, giving the company a good idea about whether they are paying industry-standard wages to their employees.
2. Old payroll systems are static, which means they can’t be connected to other applications.
This is the point where significant developments within a company (such as a merge or acquisition) can be hindered, as old-school payroll systems may not be flexible to changes. For one, shifting from one payroll software to another will require a tedious and time-consuming export process. Two, combining the old payroll system with other software such as a broad-base HR application or even an ERP, will prove to be difficult if not impossible.
What’s more, older payrolls are also out of bounds to employees. Giving your workers access to their real-time compensation information is a valuable perk, something that the latest payroll systems are capable of offering.
If your payroll software is more than 10 years old, looking at options that will either help you upgrade your current application or help you transfer over to a newer product is highly recommended. Having access to features such as reporting and easy synchronization aren’t extras, but indispensable requirements in today’s business world.
Interested to learn how you can upgrade your existing payroll software? Contact us today to know how we can assist you!