Payroll and People – The Benefits of a Healthy Payroll for Your Business
March 29, 2023
Some fear it, some love it and others have no idea what to do with it. However, it plays a big part in every business around the world. We are talking about payroll.
It’s an important business operation that ensures you pay your staff the right amount (and on time) to avoid negative morale, a less productive workforce and potential legal difficulties.
However, when was the last time you checked your payroll process?
We think it’s time to shine a light on the benefits of having a healthy payroll as well as looking a little deeper into some of the negatives associated with poor payroll.
If you’re an employer, we’d recommend getting a pen and paper!
The dark side of poor payroll
When your business encounters payroll errors, it doesn’t just affect people in the present moment; the results can be long-lasting. It can affect your employees’ finances, and your reputation and can directly impact employee retention.
Let’s take a look behind the curtain on poor payroll practice.
Employer-employee relationship friction
Picture this scenario. You haven’t paid your employees on the agreed date and it’s time to repair the damage.
From their perspective, alarm bells are ringing!
They’re upset and anxious as they’re worrying about paying their bills or going into their overdrafts. Naturally, you’d apologise and pay them as soon as you can. However, your employees may start to be anxious about this happening again which, in our eyes, is an avoidable stress they shouldn’t need to worry about.
Employees come and employees go and go… OH NO
You must retain good employees. Period.
It isn’t just because they’re good at their job and help your business succeed but it’s also incredibly expensive to recruit new people. You also need to take into consideration the onboarding process and the time it takes to train new staff.
High turnover isn’t good for employee morale or the bank.
A damaged brand reputation
If you become a company that regularly makes repeated payroll errors, people will start to talk. If we’re being honest, you’re not going to have potential recruits lining up at your door. When people look at your brand, you want people to think wonderful things – maybe your CSR is something to behold, or you deliver a premium employee experience.
You don’t want to be known as an employer who pays their staff incorrectly (or worse, not at all).
Health is literally wealth
Payroll is a machine with many moving parts and with systematic changes in regulations around tax year end, it can leave any HR and finance department pulling their hair out. A healthy automated payroll procedure can alleviate any undue stress, eliminate unnecessary human error, ensure complete data accuracy and compliance, and keep the big ol’ machine in check.
Let’s look at some of the benefits.
Ceridian, a global human capital (HCM) software company, discovered that 43% of people who manage payroll say it’s one of their biggest pain points. The beauty of having fully automated payroll software is that is in a constant state of keeping up to date with the latest regulations, reducing the risk of fines and penalties.
Having automated payroll software in your business eliminates the need for manual data entry. This not only reduces the risk of human error occurring but also speeds up your whole payroll process altogether.
An automated payroll system allows you to interpret data on an entirely different level. You can gain access to real-time data and detailed reports that can allow you to track and analyse all payroll insights.
As the complexity of payroll systems becomes greater due to continuously changing regulations, an automated payroll system can be a godsend.
A Tercus HR recommendation
As always, we have your best interest at heart when it comes to delivering exemplary HR solutions. With that in mind, we want to introduce to you our partner PayFit, Europe’s leading cloud-based solution for running payroll.
PayFit has an array of benefits designed to take back 80% of the time you spend on managing your employees. These include:
- Through the automation of payroll and HR processes, you can gain access to intuitive software with dedicated support from experts enabling you to remain in control and compliant at all times.
- With payroll and HR data stored under one roof, you can create custom reports that are not only informative but can easily integrate into pre-existing HRIS for seamless HR management.
- An easy-to-use employee portal where employees can access their payslips, request leaves, and submit expenses.
And so much more…
Payroll shouldn’t be a burden
Your payroll should be something you’re aware of and in control of, but it shouldn’t be something you’re getting stressed about or losing sleep over.
If you are still doing payroll manually, we can imagine how tiring and painful it can be especially if you forget to pay or incorrectly pay your employees.
We think it’s time to vet your payroll against PayFit’s Payroll Health Check. It’s a tool to help you revolutionise the way your business runs payroll each month and delve deep into the intricacies associated with your payroll process.
In our eyes, it’s a no-brainer, however, if you want a little bit more information before taking the PayFit Payroll Health Check, get in touch.