You don’t have to cast your mind back too far to remember what payroll was like before technology had such a transformative effect. Manual processes were repetitive, time-consuming, prone to simple human error, and gaps in data would easily go unnoticed.
The advent of automation and computerization changed all that, and the pandemic has only accelerated the trend of using technology to make payroll quicker, more reliable and more efficient. In this blog, we’ll explore five ways in which payroll has been revolutionized by technology, and why the benefits of the transformation reach far beyond the payroll department:
Reduce errors and mistakes
It’s vital that every employee is paid accurately and on time, every time. But as with any process, errors can easily creep in, so those mistakes need to be identified and rectified before any payroll is processed. Technology allows employee information to be validated continuously, ensuring that all data is present and correct, errors can be flagged up and sorted out, and that the accuracy and reliability of payroll is as close to 100% as possible.
Cut down on processing time and costs
The hard work of manually processing and validating payroll data can have a real negative effect on payroll teams and staff. Dealing with such repetitive work can really grind them down, but it can also consume far too much of their time and keep them away from doing more meaningful and value-adding tasks. Technology and automation can take much of the strain of data processing, free up employee time, and make the whole payroll operation far more cost-effective.
Generate important insights with payroll data
Previously, payroll data was used for payroll purposes, and that was pretty much that. But such an inward-looking approach means missing out on a rich layer of insights that can be found within that data. That information can not only inform a business about its workforce, but also about how the overall organization operates. For example, understanding trends in employee data such as attendance or absenteeism can highlight potential issues in employee wellbeing or productivity that can then be resolved. And presenting these insights in easily digestible forms (such as in graphs or charts) can help senior management better understand, and appreciate the value of, payroll data.
Improve employee wellbeing and business perception
The insights mentioned in the previous point, and wider payroll innovation, can have a huge positive effect on employee experience – a major consideration at a time when the global job market is extremely fluid. For example, solutions that allow employees to be paid as and when they want, such as Earned Wage Access, gives them much-needed flexibility to shape their pay to suit their personal circumstances, and not the other way around. This can help reduce their overall stress levels if their financial situation is difficult, and improve their satisfaction in productivity in the workplace. Additionally, a better employee perception of the company will spread industry-wide, and improve efforts to attract and retain talented staff.
Ensure payroll is compliant across the globe
As the world becomes increasingly globalized, it’s getting more and more complicated to ensure payroll is fully compliant when having to deal with a vast number of different regulations and currencies. And at the same time, these regulations – and the penalties for transgressing them – are getting stricter all the time. A global payroll solution, supplied by an expert partner, can help in a number of different areas, including automatically updating calculation and contribution factors as they change, so that compliance is immediately maintained.
Many forward-thinking organizations across the world are already using payroll technology to their advantage, and exploiting the power of payroll to change their business for the better. If you aren’t, then you’re increasingly being left behind. It’s clear that payroll, and its data, is an informative source of insights that sits right at the core of modern business.
Learn how CloudPay’s global payroll solution can help you embrace the power of technology and payroll data in your business.