Adapting and implementing Employee Payroll Best Practices is in everyone’s interest, because payroll, despite the enormous amount of automation that has gone into it lately, is quite complicated. It takes up a significant part of the company’s revenue and time, but yet has to be implemented at various stages of the organization’s work.
Why instill employee payroll best practices?
The answer is simple: to avoid clogging of data and muddling of other functions. Once the payroll is clear and fine, it follows for the company that most of its other functions relating to finance fall into place. Payroll is at the very core of financial operations, and it costs the average organization a lot. It is estimated that the payroll costs organizations anywhere between just under $100 to over $700 a year per employee. When projected to the overall size of the company, this is certainly a whopping cost. So, if organizations can implement a few employee payroll best practices, it goes a long way in helping them save on costs.
Integration is the soul of payroll practices. Once payroll practices are integrated into other practices such as HR, administration, tax, electronic attendance monitoring and so on, the result is that there is a lot less effort, time and cost that are involved in carrying out day-to-day payroll practices, which become a lot more lubricated and easy.
This of course, is a very obvious statement. Banal as it might sound, it makes enormous sense for organizations to carry out this one simple best practice. Duplication may sound innocuous compared to frauds, but its impact on the work an organization has to do to sort it out is baffling. Avoiding duplication at all levels of the payroll is a major one among employee payroll best practices.
Streamline pay cycles
Instead of paying employees or other owed parties on an ad hoc basis, it makes sense for an organization’s finance department to allocate a day or date for payments. This simple employee payroll best practice goes a long way in saving effort and resources such as effort and paper.
Adapt and implement smart automation
Payroll professionals could instill one of the best employee payroll best practices by implementing smart automation systems. An automated system must be capable of offering good insights into the payroll practices. It should also help Finance understand and analyze trends and traits.
Attitude is the key
Of course, on top of these stated ideas for employee payroll best practices, the organization has to make sure it approaches the topic with an open mind. It should first identify the need for initiating employee payroll best practices. It should be aware of what is happening in the market, and should identify the challenges it faces before implementing employee payroll best practices.