How Outdated Payroll Systems Are Affecting KPIs, Merges, And Acquisitions
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 in 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.
Payroll software system manages and automates the basic functions of HR such as compensation, salaries, bonuses, perks, benefits, holidays, and communication between the company and the staff. A good payroll system significantly reduces the risk of non-compliance, governance issues, and human error. Having an updated payroll software system is an integral part of hiring, managing, and retaining employees in any company.
So how are out-of-date payroll systems negatively impacting your business, without your knowledge?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 merger 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.
Latest trends in Payroll software system
Now that we know the potential disadvantages of an outdated payroll system let's discuss some of the latest trends in the modern payroll software companies
- Automation through AI & Machine Learning
Payroll software is becoming smarter with the use of machine learning and Artificial intelligence. Modern payroll systems are equipped with AI to enable automation in the repetitive and tedious tasks of an HR, giving them more time to focus on the productivity and efficiency of their employees. This automation helps save a lot of precious time for the employees and enables the companies to scale at a much larger speed.
- Work from Home and Remote work
Work from home became the new normal after the Covid 19. Millions of Americans and others around the world are working from home during the pandemic and companies are offering an extended period of remote work for their employees. Modern Payroll software systems enable the corporations to track their employees around the world and enable them to provide the flexibility of working from home while still being efficient in their tasks.
- Payroll Cloud Software
Saas Payroll and cloud-based payroll software solutions are now leading the payroll software industry. They can be accessed anywhere through the web browser or mobile app and provide real-time information to enable quick and informed decision-making.
Interested to learn how you can upgrade your existing payroll software? Following are some of the considerations while doing a payroll software comparison
Your choice of payroll software must be aligned with your overall business strategy. Understand the HR needs of your company, regulatory requirements, and the needs of your employees and business process to decide on a payroll system. Also, take into consideration the current technical infrastructure of your company and how a new payroll system can be implemented seamlessly with the technical infrastructure of the company.
It is also important to consider your budget and the cost of a payroll system. The pricing structure of the different payroll software systems varies. Some charge a base price with the add-on costs while the other charges per-user cost. You have to decide according to your budget and the number of employees whether flat pricing or a per-user cost suits you.
Payroll software Comparison
Check our Payroll software reviews based on the pricing, functionality, and usability ratings. You can also choose the best payroll software according to the size of your company, needs, and platform.
Here is a payroll software list of some of the most popular payroll software. Once you have shortlisted the best payroll software for your company. You can discuss the functionalities in detail with the vendor and ask for a demo which will give you a clear understanding of that particular payroll system.
Finding an updated payroll management system that is affordable and has the required functionalities is really important to the future growth of your company.