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Payroll Automation: Key Challenges and Solutions

HR Tech Outlook | Monday, May 03, 2021

Even a small group of employees who are resistant to change can be a major impediment in an SMB environment. It is important to remember that one can ease adoption and increase acceptance rates by holding in-depth conversations with the workers and discussing the importance of payroll automation.

Fremont, CA: Payroll has always been a time-consuming job, regardless of the size of the staff. According to studies, small business owners spend more than ten hours a month simply processing employee payroll. Payroll automation now has the potential to unlock huge efficiencies for small-to-medium-sized businesses. Organizations at this level are mainly concerned with expansion, product quality, and new business areas. Routine tasks like payroll can put enormous pressure on HR pros, distracting you from the actual work at hand. With most payroll activities being iterative and formulaic, there is no justification for SMBs to be hesitant to implement payroll automation.

Problems SMBS face when automating payroll:

Dedicating the Staff and Budgets as Per Requirement

Small companies also lack a full-fledged HR team, and there may not be a stakeholder willing to fully own the automated system. Furthermore, finding the necessary funds for payroll automation, in addition to other projects that are likely higher on your priority list, can be difficult.

The emerging crop of standalone, ready-to-deploy payroll tools delivered via pay-as-you-go SaaS models is the response to this. A range of these come with robust support and Managed Services that require little or no intervention on your part.

Responding to the Initial Employee Resistance

Even a small group of employees who are resistant to change can be a major impediment in an SMB environment. It is important to remember that one can ease adoption and increase acceptance rates by holding in-depth conversations with the workers and discussing the importance of payroll automation.

Dealing with the Fears around Job Security

Fast-growing mid-sized businesses will elect to automate payroll and redirect their efforts elsewhere. Although this is entirely understandable, the HR team may be worried about their new position in an automation-first workplace.

In fact, executives devote approximately 16 hours per week to manual tasks such as updating spreadsheets and filling out forms. It is important for HR departments to realize that payroll automation is a time-saving tool, not a job substitute.

Until introducing payroll automation for SMBs, these three elements must be tackled first. If these fundamental change management steps are in place, one should consider the various options for introducing automation.

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