In most of the traditional organizations, 50 percent of an HR manager’s time is spent on processing their employee’s information. This gives rise to confusion and has to answer unhealthy questions. The HR manager faces a dilemma on whether they need to spend more time improving the overall work environment for the employees or help the organization find ways to save on costs, finding and hiring better talent or improving existing talent through training and development. Sadly they are trapped just doing paperwork. This is where payroll software comes into play. The routine administration involved in regular HR operations consumes most of the available time and energy.
Payroll software used for a bookkeeper can help HR managers by automating compliance and risk of litigation. It ensures accurate and timely roll out of all compensation, incentives, etc. Payroll software also helps in computing annual bonus ex-gratia, gratuity, provident fund, employee state insurance, professional tax & all other necessary welfare benefits as the formulas are automated and also helps in the computation of organizational returns.
Effective use of automated payroll software delivers three-pronged results: It improves the overall performance results with increased profits, increases efficiency and lowers costs. Demand for automated payroll software has increased over time as similar software has helped companies to deal with manpower projection to training management, attendance management, leave management to employee exit management and reduce the manual workload of administrative activities effectively.
Though there is increased awareness about these automated payroll systems, the significance is ignored. Usually, this perception arises from a belief that such systems are very costly and companies aren’t able to see their ROI before implementing those. In such cases, if only the direct costs, i.e., salaries of employees are taken into consideration, Payroll software can be apparently seen as expensive, but if the costs are taken cumulatively like direct, indirect, overheads and incidental expenses involved into it, then it will cost-effective.
Also, the implementation of these systems is also essential. There is no fixed way of using these systems to a company’s benefit. These systems should be part of the processes and implemented to suit work requirements. One of the biggest mistakes HR can make to be unclear about what a company wants out of software before buying or designing it. The developer needs to get a crystal clear vision of your objectives. Only then it can be designed in a phased manner. For more details, you can call us now – 1300 049 534