Why digital technology should be at the heart of your payroll solution
Early into the third decade of the 21st century, many aspects of life have already seen tremendous change, and workforce is one of them. According to Catalyst, by 2025 millennials will account for over 75% of the entire workforce. [i]
As a generation that has witnessed the fast growth of technologies and enjoyed the benefits, these tech-savvy employees don’t just want automation, they want software that’s easy to use and navigate. That offers them insights. That’s responsive. They want technology that fits in with the way they work. Companies cannot afford to turn a blind to these needs when 60% of millennial employees are actively open to new job opportunities[ii].
Digitalize your payroll solution
Many work processes have already been digitalised, but payroll too often tends to be forgotten until something goes wrong. Yet, salary still remains the most important link between employer and employee. Putting digital technology at the heart of your payroll solution makes it less likely that something will go wrong, helps simplify processes, ensures better data integrity and reduces human error. It also allows you to take advantage of new technologies as they emerge.
Digital payroll solutions offers an opportunity to bring HR and payroll together, allowing the right people to access, and where appropriate, edit information. With the rapid shift to digital triggered by the pandemic, it is now an indisputable need.
The true benefits behind digitalization
When automation replaces humans, we all know how the story goes: costs decline, the jobs are accelerated, there are fewer mistakes, etc. But in what other ways are digital solutions fundamentally transforming the payroll landscape? Why do big-name multinational companies like Cargill and Lenovo partner with digital solution providers?
- Greater employee satisfaction—when employees do not feel happy, work efficiency reduces and turnover rates can increase. Digital payroll solution can greatly eliminate payment mistakes and make sure that your employees receive their salaries correctly and in time.
- Better data security—digital payroll solution typically has many layers of protection mechanisms as well as back-up systems, so that your business’ most sensitive information remains secure.
- Stronger data analytics—in order for your HR managers to better perform their jobs, they need data throughout each employee’s employment cycle, and digital payroll solution can generate great insights.
- Customization—different companies have different needs, which in-house payroll specialists cannot often satisfy. Yet, digital pay solution providers can build a unique dashboard just for you.
- Automation, automation, automation—with large businesses, how the salaries and taxes are calculated for each employee, especially when they are located in different countries, can be extremely complicated. Software can help simplify complexity.
- Automatic legislative updates—it is not surprising that legislations, especially when it comes to taxation, get more and more complicated. It would be difficult for in-house payroll specialists to pay constant attention to the changes, but digital payroll solutions will keep them updated.
Which questions to ask when you decide to go digital?
After you are convinced of the benefits of digital payroll solutions, you will find yourself faced with a plethora of choices. Which payroll partner should you choose? In-house or outsourcing? Stand-alone software or cloud-based? We have prepared 4 most important questions that you should ask yourself first.
- How many employees do you currently have and might have in the next 5 years?
- Which level of analysis is essential to your growth strategies?
- What are your must-have features (such as tax filling, mobile access, and real-time reporting)?
- Can the solution integrate with other systems (such as talent management, performance management, and benefits) that are already in place?
Committing to a payroll partner is a choice that has long-lasting and discernible impact on your organization and business strategies. It is essential to choose the right partner to fit your needs today and well into the future to meet your desired growth goals.
TAGS: Small Business Midsized Business Large Business Multinational Business HR Admin and Outsourcing Payroll Administration Risk and Compliance Payroll Compliance & Legislation Legislation Human Capital Management HR Finance Business Owner Infographic Blog Post