How Cloud Based Payroll Is Impacting Businesses
Human resource management has come a long way with regards to technology. From the manual data management to the PC evolution, the personnel management team has seen a deep transformation in the way it manages data and payroll information.
Pic Credit: http://www.forbes.com/sites/louiscolumbus/2015/05/04/roundup-of-small-medium-business-cloud-computing-forecasts-and-market-estimates-2015/#6a3ce6d61646
Software has become a permanent part of payroll and data management since it not only makes the process error free but also ensures quick and less time consuming solution. With more and more companies going global, it is very essential that they stop focusing on mundane tasks and look at their core objectives and business expansions.
For the last decade or so, companies have been managing payroll structure through software which is bought and installed on the company’s servers. They are then managed and run by the internal IT team. This software gets periodic upgrades and patches which are systematically run by the IT team. Essentially these upgrades and patches mean that the company ideally has to either buy the latest release of the software or has to get into a service agreement so that the latest service upgrades be sent to them for installation and updates.
This, however, is an expensive process, with the service agreement itself costing 20-30% of the original software cost. The constant check for updates and the maintenance cost always prove to be a pain to the start-ups and SMEs.
So what is TRENDING?
The corporate world has started to embrace a new concept of data management and payroll Computing- SaaS Payroll. SaaS, also known as Software as a service, enables companies to use softwares without having to install and run them on their servers. This has revolutionized the whole concept of data management and computing by allowing the companies to stop buying and installing softwares and hardwares to support it. They can now simply subscribe to an offering of SaaS.
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What is Cloud based Payroll or SaaS Payroll?
We are talking about a next-in-class technology which simplifies the computing and data management process and its everyday challenges. This payroll process allows the company to streamline the process without incurring any additional cost or manpower to manage it. Payroll process can now be outsourced to companies which are experts in this area to enable complete focus on the organizational growth and goal accomplishment.
Pic Credit: http://www.ceridian.ca/blog/2015/06/3-reasons-why-you-should-move-your-hr-payroll-processes-to-the-cloud/
Huge bulks of payroll data, employee details, earnings and settlement data can be efficiently imported and stored by a single button click. This means a tremendous level of cost cutting and a more flexible and predictable budgeting for SME, entrepreneurs and mid level organizations. The companies also have a monthly pay system which is charged as per the usage.
Is it better than the Traditional Payroll Compliance Process?
This is something which goes without much thought. It is a boon to companies big and small. It saves a lot of installation and management costs and enables better predictability in the annual budgeting. Apart from the costing, SME’s have the advantage of receiving updates and patches automatically through the SaaS provider. This cuts down a lot of workload and burden on the internal IT team.Also, the cloud payroll system allows the management in setting role based privileges.
The data is computed and stored automatically, and the formulas can be built and manipulated easily as and when the policy change requires it.
With cloud payroll management, data is made available anywhere at any time without the need for any software installation. Data is at your fingertips at one click in your laptop, palmtop, tablets or even your phone. The information is quickly available and easier to access with better security and protection. Pay computing and payslip generation, leave management, and the whole of payroll compliance is possible with cloud computing at the button click right at your fingertips.Another wonderful aspect of the cloud payroll structure over the traditional approach is its scalability. Companies have an option of paying per usage basis and can opt for a plan which suits their requirement and company size. Instead of having to download the entire software and upgrade every time, businesses can now choose to pay only for the usage they incur.
The process is so simple that it doesn’t require many hours of training and setting up. The whole set up is user friendly and very accurate. This also eradicates any scope for data duplication.
Now that we have read about what all it does. Let’s see what else!
Managing Flexibility: The SaaS Payroll process ensures that thssse whole compliance process is flexible with changes in the organization. One can create a number of pay groups and allocate costing. Organization can set their audit alerts and error flags to ensure that the whole process is seamless and glitch free. One can also manage the approval process and security authorizations.
Payroll Insights and Analysis: This cloud computing doesn’t just end with managing data. It helps in analyzing the data and looking into the minutest of details. The built in analytics helps in making analysis and data review very easy and efficient without any errors enabling better financial planning and budgeting.
Attendance Tracking at a new level: The employee attendance can be tracked from anywhere with the possibility of check-in and out from any device with internet access. The leave and time management can be made available for the managers to track their team strength and assess productivity. The attendance system can be better integrated and regularly monitored without loss of data.
Collaboration between the HR and finance teams: The personnel data can be made accessible to the finance team to be better able to manage company finances and future budgeting. It also helps in manpower planning and monetary allocations. The organizational health can also be determined using scorecards to have a better view of corporate trends, turnover, and employee engagement.
Managing Employee Benefit: The complete spectrum of benefits offered to employees can be made available on the cloud which may include their health policies, retirement benefits, insurance and other flexibility options. The data can be used to analyze the current benefits and the concurrent changes. It also enables the management in tracking eligibility and in covering all the employees who fall under the category. This secures the process and doesn’t let employees miss out on any benefit which they are applicable for.SaaS payroll also enables the management in analyzing the most lucrative benefit plans to keep themselves at the top of the employee friendly list. The management can make better decisions on compensation related decisions. The compensation break up can be better managed through the cloud payroll system.
Workforce Management: The workforce diversity can be effectively captured through this system. Probation period, contractual data, agreements can be all stored along with individual employee information and personal data.
Work Simple, Work Smart
Organization can now have a better streamlined and well defined payroll process which is error free, secure and well managed for a lesser cost incurred. Thanks to cloud based payroll system.It is always better to let people do what they do the best. In today’s rapidly changing and highly competitive market, companies need to focus entirely on their goals and business rather than worrying about payroll and documentation. A good cloud based payroll system ensures that nothing is left for manual updating and can after the initial customization, pay taxes, file income, calculate claims and do everything else which it is customized to do.
Automate Your Payroll Processing With Smart Payroll Software Now!!!
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