Should You Invest In HR And Payroll Software For Your Team?
Is it the best time to invest in HR and payroll software for your business? Payroll is a team effort. Human resources and the finance department work hand-in-hand to mitigate compliance risks and make sure everyone gets paid. That said, a bulk of the paperwork, filing, and data collection falls on HR staffers. Fortunately, there is a way to streamline the process and make life easier for everyone involved. HR payroll software offers many of the features associated with HRIS solutions. However, it also includes standard payroll processing functionality, such as automated payslips and tax filing.
This article can help you determine if it’s time to bring your HR staffers into the digital era and implement human resources and payroll software, from the pain points it can help you address to essential features you need to look for. I’ll also explore the many benefits it can bring to your HR department and profit margins. Without further ado, let’s review the basic functions of HR payroll software in your organization.
Sneak Preview Of What You’ll Find In This Guide:
- What Is Payroll And HR Software?
- 5 Things Every HR Professional Needs To Know About Payroll
- Which Obstacles Can Human Resources Payroll Software Help You Overcome?
- Do You Need HR And Payroll Software For Your Business?
- 7 Essential Features Every Human Resources Payroll System Should Deliver
- How Does Integrated HR And Payroll Software Stretch Available Resources?
- How Your HR Department Will Benefit From Human Resources And Payroll Software
There’s still a lot of mystery surrounding HR payroll functions. Does HR deal with payroll? Is payroll an HR or finance function? One of the main reasons to invest in payroll software is to coordinate business processes between HR and payroll. Many organizations have either a standalone payroll processing department or its part of finance. However, there’s a strong relationship between HR and these teams because of task overlap. So, how does using HR payroll software help manage employees and improve resource allocation?
One of the key functions of this software is automating payroll processing. As an example, HR staffers no longer have to manually compile timesheets and calculate weekly totals. The system takes care of these tasks and allows your team to focus on other job duties. That said, the HR and financing department can still adjust totals or manually input data if something slips through the virtual cracks. For instance, an employee forgets to clock in one day or they’d like to use some of their accrued personal time.
Another crucial HR payroll function is to monitor employee attendance. Your human resources department must report staffer absences and intervene when necessary. For example, when an employee misses several days in a row without a doctor’s note. HR payroll software also handles this process by automating attendance tracking and management. It records how long employees work each day and if they miss their shift. You can even see how long they take breaks for and if they leave early.
Many HRIS solutions have payroll feature recruitment tools so that you can expand your team and fill job vacancies rapidly. You’re able to post job listings or, at the very least, manage job applicants. For instance, archive resumes and search the database when it’s time for a new round of hiring. Some systems even include social recruitment capabilities that allow you to tap into a global talent pool.
Most HR software won’t handle the L&D portion of onboarding. However, payroll systems can help you reduce all the paperwork that comes with it. For example, new hires have the opportunity to update their own profiles and add crucial tax data. They can also complete digital documents and add their direct deposit info. In other words, your HR department no longer has to handle all these backend tasks when a new employee joins the team.
Health insurance, bonuses, and paid time off are just a few of the common employment benefits. Your HR team must be able to manage all these perks to be an effective employee advocate. Human resources payroll software goes beyond salaries and hourly wages. In fact, the HR department can use the tool to update employee profiles and track benefit disbursement.
One of the main reasons why organizations invest in HR and payroll systems is to streamline tax filing. While some solutions have tax filing features, others merely help you manage records and deduct the proper amount from paychecks. Some platforms even integrate with your existing accounting apps to quickly migrate data and generate tax documents.
Like any other business software, your team needs a solid framework to use the tool effectively and maximize ROI. In this case, they must understand the ins and outs of payroll processing and HR protocols. Here are a few basics that every HR professional should know before using human resources and payroll software. Keep in mind that different organizations have different HR roles. For instance, some businesses leave all the tax codes and filing to the accounting team versus human resources.
1. Accurate Recording Keeping Is Crucial
Most of the HR-related payroll tasks involve paperwork, digital or otherwise. You must frequently update records to reflect new pay scales or employee benefits. For example, request that your newly promoted staffer fill out a new tax form or health insurance application. The great thing about HR and payroll software is that all these documents are stored in a centralized location. You don’t have to worry about losing paperwork because the software keeps a digital copy.
2. Standardize New Hire Protocols
Every employee who joins the team should have to go through the same onboarding procedure. Of course, their job roles and departments may call for additional new hire documents or training. But there should be a standard protocol in place to boost onboarding efficiency. For instance, your HR staffers follow your 10-step plan to set up new hire profiles and enroll them in the benefits plan.
3. Keep Up With Tax Laws
The financing and accounting teams are usually in charge of taxes, but the HR department needs to understand the basics. For example, how much to deduct from a staffer’s weekly payslip or how tax laws apply to new hires based on their employment status. In fact, HR managers should be involved in tax compliance training so that they can pass the information along to their team. Better yet, launch a certification program that’s required for human resources employees.
4. Employee Self-Service Simplifies Processing
Most payroll systems include employee self-service, which allows every member of your organization to update their own profiles. Of course, there are some functions with restricted access. For instance, only managers can amend their pay rate or accrued vacation time. On the other hand, employees are able to modify their bank account info, contact details, and other personal data. This empowers staffers since they have greater autonomy and makes life easier for your HR department.
5. Choose The Right Tool For The Task
While some HRIS solutions are intended for recruitment, others are custom-tailored for invoicing and paycheck processing. Thus, it’s crucial to find the best tool for every task. One of the perks of investing in HR and payroll software is that it’s multifunctional. You don’t have to invest in multiple systems for every process and deal with the compatibility issues that come with them. For this reason, it’s essential to find HR payroll solutions that deliver all your must-have features without IT overlap. As an example, it doesn’t perform the same functions as a human resources management tool you already own.
Every software purchase should help you alleviate pain points, whether it’s boosting team productivity or lightening their workload. So, which hurdles can human resources payroll systems overcome? More importantly, do the benefits justify the expense or should you consider other payroll processing options? Let’s look at 5 common HR issues and how the right payroll platforms can overcome them cost-effectively.
Nobody likes to wait around for their paycheck. In fact, payroll delays can lower employee morale and increase turnover. Human resources payroll systems can help you deliver prompt payments and keep everyone happy. More importantly, employees can focus on their work duties instead of worrying about financial issues that may arise from late paychecks.
Paperwork backlog is another issue that employees dread, especially your HR department. They already have enough forms and hiring documents to deal with. Payroll software eliminates this long paper trail and brings everything into the digital era. For example, human resources employees can send documents to new hires at a moment’s notice. The new staffer adds their digital signature, then submits it through the payroll system. No more pileups and manual entry delays.
Compliance breaches are a significant problem for most organizations because they tarnish your good name and lead to costly fines. HR payroll software helps mitigate a variety of compliance risks, from tax penalties to employees’ rights violations. You even have verifiable records in case of an audit. Another benefit is that you have access to built-in metrics that highlight emerging issues.
You need to stick to your budget to widen your profit margin and expand your talent pool. Fortunately, HR payroll systems can help prevent overspending because they give you better oversight. As an example, expense tracking tools allow you to zero-in on unapproved overtime or projects that go way over budget. Many organizations use these expense management features to adjust product pricing and benefit their bottom line.
We all make mistakes, it’s part of the human experience. However, some errors are less forgivable than others. For example, an overworked HR staffer accidentally submits the payroll form twice or adds a zero onto the total. Payroll software reduces the risk of human error because most of the tasks are automated, including payslip calculations and tax deductions.
The best HR and payroll systems can help bridge crucial gaps, but is it a wise investment for your organization? You must be able to make a strong business case to get employee buy-in and secure funding. More specifically, you need to outline all the real-world benefits it can bring to your remote work teams. Here are a few reasons why every organization should implement human resources payroll calculators ASAP.
Boost Employee Morale
Most HR payroll platforms have personal time trackers and personalized dashboards. Thus, staffers get a detailed overview of their daily task performance, attendance stats, and pay status. In other words, they have more autonomy over the process and are more likely to stay with your organization. The right payroll systems have the power to boost employee morale because everything is transparent. Not to mention, hourly timers and attendance management tools prevent burnout.
Improve Data Security
One of the most convincing reasons to invest in payroll software is to improve data safety. Most systems have several security measures in place to avoid breaches. For example, user authentication, firewalls, and encryption. Thus, you don’t have to worry about printed payroll documents falling into the wrong hands, or direct deposit bank info, for that matter. That said, you should verify the data security protocols with software vendors. In fact, add it to your software RFP so that providers can outline all their data safety measures in their proposals.
Simplify The Hiring Process
The right HR payroll solutions can simplify hiring because it automates many of the mundane tasks. The new hire can add their own info before they clock in. They also have the power to update banking details and request documents or even find them in the system archive. For example, they’re able to quickly download and fill out the necessary tax or benefit forms.
Streamline Performance Management
When you work in human resources management there are a multitude of tasks to perform. You must record job descriptions, kick-start employee training, conduct annual reviews, and identify trends in employee behaviors and performance. And that’s just the tip of the HR iceberg. Payroll and HR software allows you to streamline this process and manage team performance more efficiently. For instance, you can see how many employees have reached their max work capacity for the week or how often they’ve called in sick.
For the rewards to outweigh the financial risks, you need HR payroll software that delivers all the must-have features. But which selling points should you look for to get max value for money? Are vendor support and customer training really necessary? Which functions help you improve ROI and streamline work processes? Below are 7 essential features that every HR and payroll system should have to earn a spot on your shortlist.
1. Time Tracking
Many organizations purchase HR payroll software to track employee work hours, which are automatically added to their timesheets. They can clock in and out remotely with time tracking features, as well as manually input tasks that aren’t trackable. For instance, they may not be able to access the app during a client meeting; however, they can add the task after the fact to monitor billable hours.
2. Payroll Management
Every HR payroll system should be able to handle basic payroll functions, such as wage deductions and record keeping. However, your HR staff must also have the power to add or modify payroll info and make last-minute changes. Another tie-in feature is pay period overviews, which allow you to evaluate wages, deductions, and benefits within a specific timeframe. Many tools even break it down by department, user group, or employee so that you can track spending.
3. Tax Filing
Most payroll apps have tax filing features, but you still need to integrate them with your bookkeeping software to complete the process. For instance, the payroll system handles the deductions and records. However, there are some that can integrate with your existing accounting tools to streamline filing, in which case you’re able to migrate all the data and verify that all the information is correct.
4. Employee Profiles
Profiles are another quintessential function of HR payroll systems because they allow you to manage your remote work teams and update payment info. As an example, one of your top performers needs to take paid leave and you can immediately see how much time they’ve earned. Or maybe someone gets a promotion and you must change their wage or salary details and assign more benefits. Keep in mind that this is different than employee self-service, which enables staffers to update their own profiles.
You must have accurate data to make crucial business decisions and improve ROI. As such, your new payroll systems should have advanced reporting capabilities. In fact, many have dashboards to help you monitor work capacity, spending limits, and even project overviews. Another thing to consider is data visualizations that allow you to identify trends and broaden your profit margin.
6. Direct Deposit
Modern staffers usually expect direct deposit versus printed paychecks. In this case, the payroll software automatically generates virtual payslips and sends funds to the employee’s bank account. You can also specify that the HR manager has to manually verify totals beforehand. This is yet another reason why it’s so essential to have data security measures to safeguard account numbers and transfer logs.
7. Vendor Support
While some software vendors provide basic email support and online FAQs, others take it to the next level. For example, they offer phone or live chat and impressive customer training libraries where you can find tutorials, demos, and troubleshooting tips. Then again, you may have to pay extra for these advanced services. So, always verify support options with the vendor.
Another crucial evaluation criterion is whether the tool maximizes internal assets. Does it help your staffers do their jobs more effectively and with minimal stress involved? Can they use the system to avoid tedious tasks and focus on more important work responsibilities? The great thing about payroll systems with HR features is that they deliver the best of both worlds. Your HR department can manage employees and gather payroll data, while your financing department handles the accounting tasks. Here are the top 5 ways that integrated HR and payroll tools improve resource allocation and benefit your bottom line. You can also download our exclusive HR payroll software guide for more insider secrets.
First and foremost, payroll apps let your HR staffers concentrate on other job responsibilities. They don’t have to spend hours every week calculating work hours or updating profiles, as this system does this on their behalf. As a result, automation maximizes HR performance because they aren’t stretched as thin. They have more time to onboard new team members or educate employees about compliance regulations, for instance.
Mitigate Compliance Risks
Disorganization and lack of oversight often lead to compliance risks. Payroll systems centralize all your records and help you identify areas for improvement. As an example, half of your staffers didn’t turn in the necessary forms or their tax info is outdated. Or maybe they’ve worked overtime, but their extra hours were calculated as normal pay. These are all common issues that payroll apps can help you avoid so that you can allocate funds to business growth versus compliance penalties.
Reduce Employee Absenteeism
Employees are less likely to miss work if they know everything is recorded in the system. They’re held accountable for unexplained absences, short shifts, and unapproved overtime. Therefore, payroll systems reduce absenteeism rates and boost team performance. That said, staffers also know that valid absences will be noted as such. For instance, they can call in sick and leave a note that they’re using a personal day or attach supporting documentation.
Improve Workplace Productivity
Low absenteeism and automation translate into better workplace productivity. Since employees are more likely to show up, their peers don’t have to pick up the slack. Plus, everyone can take care of their respective job duties instead of trying to handle other roles and responsibilities. As such, payroll systems for HR can even help build a stronger team dynamic.
Give Staffers More Autonomy
Most people don’t like to be micromanaged, and payroll systems give staffers more autonomy over their workday. They can see how much time they devoted to each task and if there are any work redundancies. For instance, is there a more efficient way to conduct team meetings or update company records?
Every employee benefits from HR payroll software because it automates certain tasks and ensures timely paychecks. However, your human resources team reaps their own rewards, especially if they’re already stretched thin and pressed for time. These 5 perks help your HR department make the most of their workday and get better oversight of employee performance.
Alleviate HR Workload
Your HR department already has enough on their plate without having to worry about payroll processing errors and manual data entry. This software lightens their workload and lowers stress levels. As a result, they’re better equipped to handle their other job duties. Not to mention, stay with your team instead of looking for another employer that does have payroll software.
Take The Stress Out Of Year-End Reports
Nobody enjoys year-end reports because there are so many sub-tasks involved, ranging from balance sheets to auditors’ reports. HR payroll systems make it easier to migrate data, file taxes, and wrap up the fiscal year. You can also generate reports automatically to help you track spending and improve your budget for the upcoming year.
Simplify Performance Evaluations
Employee performance evaluations are another dread-worthy task because there’s so much paperwork involved. Plus, you don’t always have data on-hand to pinpoint areas for improvement. Fortunately, your HR team can use payroll software with HR functionality to simplify the entire process. They can evaluate attendance records, task breakdowns and billable hours to create a more holistic performance appraisal.
Reduce Human Error
I’ve already talked about the cost consequences of human error. However, there’s another drawback to consider. Mistakes make things more challenging for your HR staffers because they need to deal with the fallout. For example, spending an hour trying to remedy the issue rather than recruiting candidates or onboarding new hires. Above all, payroll software reduces risks so that your HR team can avoid unnecessary stress.
Manage Internal Resources
One of the most notable benefits for your HR department is improving collaboration between departments. Payroll solutions help everyone track expenses and make the most of internal assets. For instance, your financing and HR department can use reports to determine if another round of hiring is in order or if you need to rethink job roles and duties to prevent overlap.
HR and payroll software is a wise investment for remote teams who need to streamline processes and maximize their workday. However, all the benefits hinge on finding the best tool for the task. Namely, one that suits their IT experience, skills, and personal preferences. Fortunately, you can use our exclusive online directory to choose the ideal payroll system in your price range. It features the leading vendors, complete with features lists, support services, and pricing options.
How do you start your software search? Download our eBook HR And Payroll Software Guide: Is It Time To Bring Your HR Team Into The Digital Era for insider tips to find the best payroll system provider for your business. You’ll learn how to use free trials and social media groups to avoid buyer’s regret.