Improving payroll: how businesses can turn payday into yay-day

According to the Society for Human Resource Management (SHRM), over a third of people have had to chase their employer for their pay at least once, with 35% saying they would leave their current jobs if paid incorrectly. 

Getting payroll wrong isn’t an option.

However, no business chooses to get payroll wrong (obviously!); typically, a perfect storm of factors leads to errors creeping in.

What causes payroll errors?

For the majority of businesses, human error and manual processes are the leading cause of mistakes.

Those managing payroll have an awful lot of information that needs processing regularly.

Pulling data from different locations, systems and spreadsheets, in addition to manually keying in information, is a recipe for disaster.

Some businesses also have inherently complex payrolls, with staff on a wide array of different contracts and factors such as overtime contributing to the difficulty.

Additionally, it is incredibly common for those managing payroll to receive last-minute requests, informally via email or text, requesting urgent changes.

Whether payroll is your full-time job, or you manage it alongside other responsibilities, it is undoubtedly difficult to get consistently right.

What are the consequences of payroll errors 

Payroll errors can place significant strain on your employees; with such a high cost of living, people can’t be paid incorrectly.

Getting payday wrong is sure to result in significant reputational damage, and as mentioned in the introduction, some employees could resign after experiencing issues.

For those who rely on spreadsheets, there’s also a significant GDPR danger when moving sensitive data around.

Plus, financial penalties are a risk! HMRC can charge penalties if you send a return or other document that contains an inaccuracy, resulting in tax being unpaid, understated or over-claimed.

How can software reduce payroll errors

Good software goes a long way in tackling payroll errors, providing payroll professionals access to handy features which make their lives so much easier.

Below are a few of the standout features which could help your business eliminate the risk of payroll errors.

HR and payroll integration

For many businesses, the most regular changes to payroll are starters and leavers.

It is so important new starters are put on the system correctly and paid on time, especially if you consider they may have not been paid for a few weeks + you want to kickstart their experience in the most positive way (paying them incorrectly won’t do that!).

In some industries, there are also heavy hiring periods related to seasonality, which means during these times, those managing payroll face far more intense stress and demand due to the rise in new starters.

HR and payroll integration goes a long way in easing these burdens.

If your systems are integrated, it means when a new starter joins or someone leaves, the changes made in your HR cloud software are automatically reflected in your cloud payroll software.

Additionally, this benefit applies to a range of other scenarios, such as bank details being changed or different workplace benefits being selected.

Again, with integration, once these changes are made in the software, boom, it is also automatically reflected in the payroll system.

More content: How to eliminate payroll errors with HR integration

Read here

How to integrate HR and payroll software

HR and payroll software integration is facilitated via an Application Programming Interface (API).

An API is essentially a protocol between systems which enables them to securely connect and share information.

To simplify the explanation, imagine you are at a restaurant; the API is similar to the waiter who takes your order to the chef who then cooks your food.

Self-service

Self-service features, often found in good HR software, also go a long way in avoiding errors.

For example, if an employee’s bank details change, via their HR software self-service portal, they can update this themselves.

Employees can also self-serve their benefits selection, choosing what they want directly in the system.

Now, where this gets exciting is when you combine it with the HR and payroll integration mentioned above.

Employees can handle a lot of their own key changes, which are then automatically reflected in the payroll system without the need for any human intervention.

Bonus: staff can also download key payroll documents, like payslips or P60s from the self-service portal, saving you time and stress while improving their experience.

Automation

Automation in payroll software can also really take the hassle out of managing payroll.

Payroll software can calculate wages, deduct taxes and direct deposit salaries, eliminating a lot of manual, repetitive work.

This not only saves time but also greatly reduces the risk of human error, helping ensure your people are paid accurately and on time.

Another example relates to businesses that use timesheets; automation also helps simplify the timesheet process, automatically sending the necessary information to payroll when required.

Bonus: with good payroll software, you can also automatically generate reports, giving you quick and easy access to vital data.

Want more information? Watch the webinar!

Our experts at IRIS Software Group, Lizzy Barry (HR Director), James Kenyon (Senior Account Executive) and Stuart Bate (Cascade Product Expert) joined forces for a webinar that explored the main causes of payroll errors in today's challenging economic landscape and how to overcome them.

They covered the above in far more detail, showcasing real software demos to help illustrate the benefits.

Don't let payroll challenges jeopardise your business! Watch this session where they unravel the secrets to a flawless payroll system.

Webinar: Turn payday into yay-day with HR & payroll integration

Watch here