In the fast-paced and highly competitive global economy of today, businesses tend to operate with maximum efficiency and effectiveness. To meet these high demands, modern Human Resources departments have turned to automation as the solution. With the constant need to do more in less time using fewer resources, automation has become the go-to component for HR departments worldwide.
Every now and then, businesses are faced with the choice to either evolve or be left behind, and to stay ahead of the curve as a business owner, it is best to embrace beneficial options like global payroll automation and leverage it to your advantage. By automating HR processes, you will be able to streamline operations, reduce errors, ensure compliance, and save valuable time and resources that can be redirected toward strategic planning and growth initiatives. Just to name a few of the benefits.
In this article, you will read about:
- What is Payroll Automation?
- 5 Reasons Why You Should Automate your Payroll and Benefits Administration
- How to Establish Payroll and Benefits Administration Automation.
Embracing automation is no longer an option, but rather a necessity if your main goal is to succeed in today’s highly competitive landscape. So, let’s talk in-depth about the benefits, the whys, and the hows that can get you closer to your short/long-term goals.
What is Payroll Automation?
Payroll automation is using technology to streamline and simplify the process of paying employees. It involves the use of software to automate tasks such as calculating employee pay, taxes, and deductions, generating pay stubs, and processing direct deposits. When you automate your payroll process, you save a lot of time, reduce error, and mitigate risks, in addition to ensuring compliance with tax laws and regulations, and also freeing up resources that can be better spent on other areas of the business.
5 Reasons Why You Should Automate your Payroll and Benefits Administration
1. Increased efficiency:
Automating payroll and benefits administration can significantly increase efficiency. When it comes to payroll, it will help ensure that employees are paid accurately and on time, which can improve employee satisfaction and reduce turnover rates.
As for employee benefits, having your employees fill out paper forms every time they access details for any of their benefits is known to be a hassle, and then having to transfer their data into spreadsheets for payroll, health insurance, and other HR needs can be very time-consuming and will present endless errors. However, by utilizing an efficient platform, all of this information can be automatically organized, allowing you to focus on actual work instead of paperwork.
2. Saving Valuable Time:
By Automating your benefits, you will be eliminating the need for manual data entry, which can be a time-consuming and error-prone process. With automation, the software can automatically calculate employee pay, taxes, and deductions based on the data entered into the system. This eliminates the need for HR personnel to spend hours on data entry and fixing errors. Additionally, automation can save time by reducing the need for printing and mailing physical paychecks and pay stubs, which can be a significant time drain. Overall, automating payroll can free up valuable time that can be redirected toward other areas of the business.
3. Cost Reduction:
According to research, data from the American Payroll Association reveals that automation reduces payroll processing costs by as much as 80%.
Automation will:
- Eliminate the need for manual data entry, which saves time and reduces the risk of errors.
- Help businesses avoid costly penalties and fines associated with noncompliance with tax laws and regulations. By automating payroll, businesses can ensure that all payroll taxes and deductions are calculated accurately and paid on time.
- Reduce the need for printing and mailing physical paychecks and pay stubs, which can save a significant amount of money on paper, ink, and postage costs.
4. Improved Data Security
Incorporating a system that provides encrypted data will make it way easier to secure all your sensitive data, as you will have a say on who can access your employee information database.
With encryption, all your sensitive information, including employee payment details, is protected from unauthorized access. Additionally, automation eliminates the need for manual data entry, which can reduce the risk of errors and potential security breaches.
5. Allow Employee Self-Service
Can you imagine the time and effort that you and your employees will save if all your HR needs/requests are automated? You can simply do that through Ovarc and here are a few examples of the requests that can be done automatically through the platform. Your employees can:
- Edit their personal information
- View and print pay slips
- Update their direct deposit details
- View benefits statements
- Monitor deductions
How to Establish Payroll and Benefits Administration Automation
If you’re looking to automate your payroll and benefits administration processes, there are several steps you can take to get started:
- Evaluate your current payroll and benefits processes: Before implementing any new system, it’s important to evaluate your current processes. Identify pain points, inefficiencies, and areas for improvement.
- Choose the right software: Look for payroll and benefits administration software that suits your business needs. Consider factors such as scalability, ease of use, and integration with other systems.
- Implement the software: Once you’ve chosen the software, it’s time to implement it. This may involve data migration, configuration, and training for your team.
- Test and refine: After implementation, test the system thoroughly to ensure it’s working as expected. Refine processes as needed to improve efficiency and accuracy.
- Monitor and maintain: Regularly monitor the system to ensure it’s running smoothly. Address any issues promptly and keep the system up to date with the latest software updates.
You can also read
- Introduction to Payroll Management. A Guide to New Business Owners – Part I
- Understanding Global Payroll Challenges and How to Overcome Them
- Global Payroll Outsourcing: Pros and Cons
We at Ovarc offer a range of services, including payroll automation and benefits administration.
You can fill out the form in the contact us page to have a representative contact you to schedule a free consultation session and discuss all matters related to how we can help provide you with optimal solutions.
