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The entire payroll system can be improved and made more systematic if processes are standardized, optimized, and digitized. As companies have reconciled with this new normal and brought many changes in their working policies, it is important for their payroll processes to resonate with a new flexible world.
Fremont, CA: Lately, the way companies operate and execute things has changed dramatically. For instance, many companies have implemented flexible working policies for employees and have provided them with the freedom to choose when and how they want to work. With increasing flexibility in the working environment, payroll continuity has a crucial role to play.
The entire payroll system can be improved and made more systematic if processes are standardized, optimized and digitized. As companies have reconciled with this new normal and brought many changes in their working policies, it is important for their payroll processes to resonate with a new flexible world.
The New Payroll Analysis
When payroll is viewed in isolation from the wider HR and financial goals of a company, 'human' aspects of the process can be lacking, such as user interface or accountability.
The ADP Research Institute found that almost one-third of workers in the Asia-Pacific region would not be aware if they were paying wrongly and that 11 percent of those employees were confused by their salary or payslip.
Globally, one in three workers claims that they are often, sometimes or often paid late.
Processes that are highly dependent on manual input can be contaminated with error and inefficiency. This danger has been brought to the fore during the coronavirus pandemic, as almost every country has seen rapid legislative changes in working arrangements, salaries, entitlements and subsidies.
Challenges faced by many organizations whilst running payroll are:
· Many businesses that manage their payroll in-house, especially small and medium-sized enterprises, find it to be a labor-intensive, manual process prone to error.
· Payroll is often seen as a tactical and not a crucial part of the employer-employee relationship, leading to poor user experience.
· There are many hidden costs associated with payroll processes that are not streamlined or incorporated into larger HR or finance structures, including time spent gathering and analyzing data, validating findings and responding to employee inquiries.
· Low data visibility and consistency often impede the ability to report and the decision-making effects.