Payroll efficiency is vital to your business, mainly as it is most likely the most considerable expense within your organization, both in time and money.
Payroll is held in such high regard by your employees it can drastically impact their productivity.
The costs of payroll errors can be widespread including employee satisfaction, retention, and overall company performance.
By utilizing an HR software to make your payroll as efficient as it can be, the benefits to your business can be numerous, both in terms of performance and financial growth.
Why is payroll so important?
It might seem like a relatively straight forward element of running a business, but it really isn’t.Payroll or (payroll errors) is probably your organization’s largest expense and often the most time-consuming task conducted by your HR team every month. Which means it not only costs you the salaries of the employees you have but the time your HR team takes to process it.
For most small businesses, your payroll and your benefits could account for (depending on your sector) 40-80% of your gross revenue. It involves the payment of employees, whether they are full-time or part-time, as well as freelancers or consultants.
Manual data processed payroll has to incorporate numerous factors, which increase exponentially depending on how many employees you have. Payroll also needs to conform to the legal obligations you have as an employer.
In Dubai, there are a variety of rules for private sector companies regarding employees. One particular aspect is the Wage Protection System in which employers can be penalized for late payments. Ensuring that you incorporate all the legal requirements, taxation implications and your company nuances are complicated. It is essential that it is handled correctly and efficiently for you to get the best results.
Your payroll affects your performance
It does. That is because it drastically affects your employees. Your employees are an essential part of your business; if they aren’t able to perform, your business suffers. If your employees aren’t happy or are stressed, they won’t perform as well as they should. There aren’t many factors that can make employees more stressed than payroll errors. Many employees would find themselves in financial difficulties after just one payroll errors. 78% of US workers surveyed in 2017 said they were living
The cost of payroll mistakes
In the short-term, your biggest expense is likely to be productivity, but it can also drastically affect your retention. A recent survey found that 49% of employees would start looking for a new job after just two payroll errors. As your employees are so vital to your success, it is essential to avoid scenarios that cost them money.
Even though employees today consider many factors in job satisfaction, salary remains top overall. Also, fixing payroll mistakes, especially without the proper software, can be extremely time-consuming for your HR team. Great companies have HR functions that are free to work on important tasks, not get lost in spreadsheets. In Dubai, repeated payroll errors could also be financially costly if they contravene legal rules. If your payroll doesn’t adhere to requirements, you could find yourself with a big fine.
How will HR software improve my payroll?
Given the costs of payroll errors, utilizing a state-of-the-art HR software is a solution you can’t afford to miss. Here are just some of the reasons why:
- It saves time and money. Distributing payroll can often involve complex calculations and bespoke factors that would take days manually. By using software that does this all for you, your HR team will save valuable time.
- It integrates your functions seamlessly. A good HR software such as Aqeed People can integrate with your other systems so that data syncing can be done automatically. Changes to holidays, sick leave, promotions, and bonuses can be updated with one click, and your software will handle the rest.
- It gives real-time results. From ensuring updates are implemented efficiently to data accessibility, HR software can take care of everything. You can secure vital information, set your permissions and still be able to access the data you need in seconds.
- It gives you automated reminders. By customizing your software to your specific company needs, it then uses AI technology to anticipate issues, set reminders for key dates and alerts for payment deadlines.
- It helps you with strategic planning. Having an HR software that can collate and recall essential data in seconds can help management coordinate strategies and evaluate the course of action to make the right decision.
- It gives your employees a crucial resource. With appropriate permissions, your employees can access their information quickly and easily, enabling them to ask the questions they need, get information that is helpful and avoids wasting your HR team’s time.
Ultimately, the benefits of having a smooth and efficient payroll are just too big to ignore….
- With a smooth payroll, your HR team can focus on more critical tasks that will improve your company.
- With a smooth payroll, you demonstrate your company’s financial stability to internal and external audiences.
- With a smooth payroll, you can have happy employees and raise their level of trust in your organization.
- With a smooth payroll, you can increase your employees’ productivity and therefore your company’s performance.