With time, the roles, responsibilities, and functions of the HR team have evolved and become more employees focused. They are going beyond just being the link between the workforce and the management. Human resource executives and managers nowadays act as support systems and guides for the workforce.
Considering how all the business operations have gone remote and digital, it is crucial for the payroll and HR functions to undergo digital transformation. While many companies are already adapted to digitization, they are yet to transform digitally. But what differentiates digital transformation from digitization?
While digitization aims to convert analog data into digital data, which is something businesses have been doing for years and decades now, digital transformation is about utilizing digitized data with emerging and new technologies in transformative ways. This means we can collect, and process huge quantities of data besides analyzing the data in an innovative way using data visualization and advanced analytics. We can even access the results at anytime and anywhere in the world.
How Does This Relate to Payroll Processing Exactly?
Such technological innovations enable the businesses to provide convenient, far-reaching, and cost-effective solutions to overcome payroll challenges with a tailored end-to-end payroll service. Good examples of these innovations would be real-time reporting, chatbots to help employee with their HR related queries, solutions powered by AI and ML to help payroll managers detect errors more easily etc.
Meeting the Challenges of Payroll Processing System with Digital Transformation
Here’s how businesses can drive your way to meeting the challenges of payroll processing system with digital transformation:
1. Implements Standardization Across Different Regions
Executing payroll processes in different countries is complex as oftentimes practices are not uniform and vary from region to region. This makes it overwhelming as well as time-consuming to evaluate and extract valuable insights and data as different countries may deploy different methodologies, formats, etc. And, if there’s a lack of cohesive and harmonized practices, it would make integration of data tough.
Therefore, it is crucial to leverage digital technologies. It helps automate, harmonize and consolidate payrolls of all employees into a single view with access to analytics functionality and real-time data. Now, companies can seamlessly process and gather data and get a clear insight across different jurisdictions for data analysis and reporting.
2. Enables Agility and Seamless Payroll Processing
To identify receding opportunities or plan for future growth, swift analysis of data is required. Reports and information that do not reflect properly what has already happened may slow down the business processes and leave organizations with disintegrated and incomprehensible data.
Standardized and technology-enabled reporting tools, best-in-breed payroll processing software and data analytics besides payroll expertise’ have made integrated, clear, and swift reporting possible.
3. Pay slip Generation – Historical and Current
Agile payroll software easily generates historical as well as current payslips for the employees. It usually provides various layouts depending on the requirement, ensuring statutory minimum information is included in the payslip.
4. Data Security
As your payroll data is highly sensitive, it is imperative to keep your data secure. The payroll files contain personal information of the employees which need to be protected, such as date of birth, mailing addresses, bank details and others. By outsourcing payroll system to a reliable company or deploying high-performing software, businesses can ensure that their employees’ information is secure in compliance to GDPR as well as accessible to HR .
5. Maintaining Speed
The complete process of preparing and processing payroll it is going to be optimized with the use of payroll software. Additionally, it becomes easy to prepare reports and statements instantly, meaning general businesses will move quicker and enhance efficiency.
6. Enhance Employee Engagement
Payroll plays an important role in making the employees feel their net worth in an organization. It is the total compensation, which is inclusive of salary, reimbursements, bonuses, incorporation of tax-related information and other benefits. Accurate performance evaluation with the cloud-based payroll systems helps in rewarding employees with a lucrative bonus or salary increase. Such monetary rewards further motivate employees to contribute their best. An agile payroll software brings everything under one umbrella and leads to better management.
As technology has become the greatest driver of business efficiency and success, it makes sense for every business to ensure the digital transformation of their payroll and HR departments. This would be the sure-shot way of ensuring business growth and keeping the company’s culture intact.
