When organizations think of saving time and money, the first thing that comes to mind is payroll management system that helps manage the computation, disbursement and reporting of employee salaries. The most obvious benefit is the automation of payroll processing to minimize mistakes that can be attributed to human error.
According to a recent survey, one third of employers are still using payroll technology that has been introduced decades ago. The “Evolution of Payroll Technology Survey” that was conducted by Kronos with the American Payroll Association, almost 10,000 payroll professionals from small, medium-sized and enterprise-sized organizations across all industries was polled.
The results revealed that outdated manual payroll processing and legacy payroll solutions restrict the payroll department’s ability to track and report the most significant performance indicators. It also affects the ability of the payroll department to keep up with the speed of modern business.
The survey also revealed that 49% of the organizations surveyed fail to track key performance indicators in the payroll department. At least 29% of the organizations polled are still using payroll systems that are as old the first iPhone from Apple.
According to Malysa O’Connor, senior director of Payroll Practice Group at Kronos, payroll professionals are facing a very challenging predicament because they have to rely on outdated solutions that limit the overall organizational performance. HR professionals often find it difficult to justify the investment to the company’s stakeholders.
Investment is needed to be able to procure modern, digital solutions that will provide in-depth analysis and engaging employee experience that will result to improved performance. However, the biggest challenge faced by companies is mergers and acquisitions. The challenge is very difficult to overcome with the present payroll system that is being used including changes in business goals, leadership and regulations. If organizations will invest in modern digital solutions, it can deliver on-demand reporting and analytics and track seasonal and contingency workers.
If an organization has an efficient payroll management system, all employee information is in one place making it easy to track and manage. Report generation will be fast and accurate which is very important when specific reports have to be submittedwith tight deadlines.