Effective payroll management is not just about disbursing salaries; it encompasses meticulous attention to detail, compliance with ever-evolving regulations, and maintaining the financial health of your organization.
It is estimated that there are 633.9 lakh MSMEs in India and a staggering 25% of small businesses still use pen and paper for their payroll records.
A McKinsey survey shows that typical HR departments still spend nearly 60% of their time and resources on transactional and operational activities, despite decades of pushing work out to shared services. Hence, it is important to identify the drawbacks of your current payroll management system and redress them.
This blog will delve not only into the problems but also just the right payroll solution you need for your business.
Common Problems Around HRMS Payroll
Maintaining and organizing records can be quite a hassle since misplacing them is a common issue, and that can put you in a fix since administrative records are integral. These advocate for a paperless HR department, which is not only much more sustainable but hassle-free. Commonly, the problems of HRMS payroll are about
- Managing multiple platforms for salary calculation, payments, and reconciliation.
- Spending hours every month to calculate payroll deductions like TDS, PF, PT, etc.
- Payroll discrepancies and errors such as overpaying or underpaying employees.
- Challenges in tracking employee attendance to figure out how much to pay.
- Managing employee requests for attendance, reimbursements, payslips, and salary details.
- No set template to execute HR policy on employee onboarding or full and final settlement.
How an Inefficient Payroll System Can Impact Your Business
An inefficient payroll management system can pose a threat to the growth of your business in so many ways, like
To further understand how efficient payroll management software can improve the way you handle your HR processes, let’s take a closer look at the following case study.
OPEN’s Solution for Payroll & HRMS – An Insight
Effective payroll management software encompasses several crucial aspects that optimize payroll processes and ensures accuracy and compliance.
It accurately calculates employee wages, taxes, and deductions while adhering to labor laws and tax regulations.
Listed below are the capabilities of OPEN’s HRMS & Payroll Software
- MIS Reports
Get any insight you need in a few clicks with MIS reports on attendance, leaves, attrition, loans, expenses, and more
- Letters and Forms
Generate any formal employee communication like offer letters easily with customizable templates
- Document Management
Get secure cloud storage to save employee documents like address proof or experience letters
- Shift Management
Define shifts and overtime policies, and enjoy auto-calculation of attendance, leaves, and overtime into payroll
- Flexible Benefits
Allow employees to choose from benefits and allowances, with pre-defined workflows for submitting proofs and approvals.
- Continuous Compliance Updates
Enjoy hands-free compliance as updates in statutory labor laws are automatically reflected in payroll calculations
- Role-Based Profiles
Offer different roles in your team access to employee data as per their needs with role-based access to auditors, managers, and HR personnel.
- Bulk Upload for Master Data
Enjoy easy adoption of Open Payroll with a bulk upload facility of all your employee details in one go
In a nutshell
The process of choosing an effective payroll management system demands a meticulous and strategic approach. Selecting an effective payroll management system is an investment in the organization’s success, providing substantial benefits that positively impact the overall financial health and productivity.
By embracing advanced technology and adopting a solution tailored to the unique requirements of the business, companies can elevate their HR operations, optimize resource allocation, and position themselves for continued success in an ever-evolving business landscape.
So there you go, sign up for OPEN Payroll in minimal time with an easy-to-use user interface and detailed help manuals and tutorials.
Watch our product walkthrough video and discover how OPEN works: https://register.open.money/product-demo/
