Get strategic with fully-integrated Payroll and HR
Payroll in isolation has long been a tactical function. Transactional by nature, as long as your people get paid correctly, and on time, it’s largely invisible. Behind the scenes, Payroll teams spend their time feverishly reconciling timesheets and entering data. Every pay period, traditional payroll is a matter of inputting the right data, and letting the payroll system do its thing.
Yet, if you’re like most organisations, you spend anywhere between 15% and 30% – or even as much as 50% –of your gross income on Payroll.
So, it’s an area that warrants serious attention.
Small payroll mistakes create big problems
There’s also the question of risk. It’s essential to have a clear view and understanding of your Payroll activities in relation to other areas of the business, particularly people management. You need have the right information at your fingertips to make informed business decisions.
Gaps in payroll policies and procedures can damage your business. Even unwitting mistakes can be costly in terms of unbudgeted backpay payments and penalties. There’s also the potential for lasting reputational damage for organisations that are seen to be ripping off their workers.
As the lines between Payroll and HR increasingly blur, Payroll is an area ripe for transformation. The two functions often share the same data, and need to work closely together to ensure compliance with legislation and workplace regulations.
Fully-integrated Payroll delivers critical business data
Once fully integrated with core HR processes, such as onboarding, performance management, benefits administration, and time and attendance management, payroll becomes strategic.
In fact, your Payroll function has the potential to give you access to powerful business analytics, and ultimately, a wealth of strategic insight and competitive advantage.
By looking beyond the next pay period, your Payroll function can help you anticipate your organisation’s future needs. It can also help you prepare for legislative changes, that may affect the way payroll is processed. For example, the introduction of Single Touch Payroll (STP) is changing the way employers report to the Australian Taxation Office (ATO).
Besides reducing complexity, errors, and minimising the need to double handle data from one system to another, leveraging fully-integrated Payroll and HR technology can help you align information and how you manage it. Integrating Payroll with HR gives you greater control over both data and processes, and plays an important role in maximising efficiency.
For example, using a system that offers employee self-service for tracking hours worked, rather than having to manually input the time sheets for employees, the Payroll team can now review inputs directly in the system. Such efficiencies reduce payment delays and other issues resulting from inaccurate or hard to read hand-written information.
Of course, by eliminating redundant and duplicate data, you can take advantage of business information that is more accurate, current and complete. With better data comes richer insights, improved forecasting accuracy, and greater compliance.
With HR managers becoming increasingly overwhelmed with growing regulatory obligations, and a continually changing Payroll landscape, it’s a good time to put Payroll under a different lens.
As a natural next step in improved performance and governance, fully–integrated payroll opens up a valuable source of business intelligence and competitive advantage. By taking a strategic planning mindset, you can focus more time and energy on strategic outcomes and delivering greater value to the business.
See for yourself the power of a fully–integrated Payroll and HR solution. Book in for a demo of FlarePay; our powerful, yet easy-to-use Payroll software. FlarePay takes care of payslip distribution, general ledger interface, superannuation, banking file lodgements, single-touch-payroll transactions, and more.
Get started! Book your free demo today.