6 Invisible Benefits of a Centralized Payroll System
- Last updated: July 25, 2023
How much will your company’s ROI be once you have implemented a centralized payroll system?
What will be the percentage of efficiency gained?
How much faster can the payroll process become?
Most of the benefits we value when choosing a centralized payroll system are precise, quantifiable ones. While these are evidently important, there are other less noticeable benefits that make the switch and investment well worth your trouble. Identifying them helps you make a more informed decision and calibrate your expectations for your new payroll system.
Read on and find out what they are.
1. Fewer errors, better morale
A centralized payroll system will help you with and even take over some major payroll functions and processes such as:
- Automatically recording attendance and calculating overtime (thanks to attendance integrations)
- Automatically calculating leave balances (sick, annual, and parental leaves, among others)
- Automatically calculating tax and other applicable remittances
- Sending reminders for upcoming tax deadlines
- Generating employee payslips
- Calculating other employee benefits (medical insurance, travel allowances, and more)
When these tasks are automated to some degree and taken care of by your payroll system, there is less room for human errors. Previously, human errors could mean that the whole payroll team would need to go over all the data once more while contending with an impending deadline. One small mistake could cause hours of overtime and become a source of stress for payroll employees.
With human errors being reduced, the strain on the payroll team is considerably lessened – leading to much-improved team morale. This applies to the payroll team and other workers who are less likely to receive late payments.
Better employee morale, as has been shown in various studies, is conducive to increased productivity and a better employee experience.
2. Enhanced decision-making thanks to reports and analytics
One of the more underappreciated aspects of a centralized payroll system is reporting. A modern payroll system will be able to quickly generate all manners of reports using data entered and stored in the system.
The easy arrangement of data in reports and analytics holds significant power.
They help you notice patterns and analyze your workers’ behaviors through key indicators. For instance, analytics could help you determine the number of leaves used during a certain time period, allowing you to anticipate and better distribute your workload during these key periods.
You would also be able to better determine peak productivity periods and the most productive employees.
With the help of all this data, you will be empowered to make better short and long-term decisions about workforce scheduling and strategies. These improvements while difficult to measure and not always noticeable, are invaluable to your company’s continued well-being.
3. Better management of remote workers thanks to clock-in systems
Clock-in systems are essential to the proper management of remote workers. They offer real-time feedback, planners, and performance monitoring to managers and team leaders. This allows for better coordination and communication between remote workers and their managers.
In this way, managers have a better understanding of what workers’ schedule looks like, and how much time it may take them to finish a task or work on a project. All of this leads to better-informed decisions and ultimately to better management of remote employees.
Knowing that you can reliably manage remote employees – without their productivity suffering – can empower you to offer opportunities for remote or hybrid working more readily. In itself, this opens up your company to the possibility of hiring beyond borders, thereby opening up your talent pool. Being able to offer flexible working arrangements also makes you a more attractive employment option for workers.
4. More positive employee experience
Improved employee wellness is one significant, immeasurable advantage of a centralized payroll system.
Often, employees must endure overwhelming workloads, stress, and poor communication as part of their jobs. Naturally, these factors do not work in your company’s favor. And while no piece of software will be able to address the totality of these issues, software that promotes openness, trust and better communication will undeniably help to improve employee experience. Indeed, a good payroll system can make a world of difference, whether it’s by the removal of tiresome tasks for the payroll team, accurate and timely payments for all employees, or better management of remote employees for enhanced productivity.
Better employee experience, as you may already know, equals better employee retention, which also means reduced costs for your company. This is because it is costlier to find and hire new employees than it is to retain already-employed personnel.
5. More practical for employees thanks to self-service portals
A modern, centralized payroll system can make payroll processes so much easier. Employees no longer need to fill paper forms to ask for leave permissions, to log in their overtime hours or to clock in and out. This administrative burden is significantly lessened thanks to employee self-service portals – a feature that the right payroll system should have. These self-service portals are available either via a mobile application or a website. Employees may also feel more involved in their work in this way.
6. Freeing up time for HR/Payroll personnel
As previously mentioned, a centralized payroll system will lessen the burden on not only your payroll but also your HR teams. This frees up their time, allowing them to focus on matters that truly require their attention, rather than doing repetitive tasks that are important – but which can easily be automated. Your HR personnel will, for instance, better be able to listen to employee grievances and set up strategies to improve employee experience.
Key takeaway
A centralized payroll system (such as Sage 300) offers numerous benefits by streamlining and automating critical payroll functions. This way, you can efficiently handle tasks like calculating salaries, managing deductions and benefits, generating pay stubs, tracking attendance and working hours, handling tax calculations and filings, automating payment processing, generating insightful reports for payroll analysis, ensuring compliance with labour laws, integrating with accounting and HR systems, safeguarding data, and reducing administrative workload and potential errors. Implementing a centralized payroll system can significantly enhance efficiency, accuracy, and compliance while freeing up valuable time for other important business activities.
How Africa HR Solutions can help
Africa HR Solutions will empower your company to reap these ‘invisible’ benefits as well as the more quantifiable ones thanks to our modern payroll offer. It brings together the best of human knowledge and technology, offering you a payroll system that is tailored to your company’s needs, and which can meet the changing demands of work in 2023.
Ready to reap the benefits of modern payroll systems? Get in touch with us now.
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