6 BENEFITS OF USING HR PAYROLL SOFTWARE
Posted on December 7, 2017
Maintaining and accessing employee records continues to be a challenge for HR departments in many companies. The traditional way of maintaining employee records was to adopt a HR system on site that was accessible by only a select few HR personnel. Although these are now also available in cloud, numerous companies still manage their teams by relying on a jumbled system of post-it notes, documents and spreadsheets. This costs companies valuable time and money.
The best solution is to implement an HR payroll software program. Companies can gain the following advantages by employing this system:
1 Efficient Administration
Tracking basic details of just a dozen employees can quickly convert into a nightmare, especially if you utilize a paper based system. Even simple employee requests such as “May I have a copy of my previous paystubs?” or “How many days off do I have left for the year?” can become a time-consuming task, leading to loss in productivity.
An automated HR software program tracks all relevant employee details which can be accessed within just a few seconds.
2 Reduce Expenses
An efficient HR system will actually save you money. How? The standard number of full time HR personnel in a company with 100 employees is one. However, with an HR payroll software system, the ratio can increase to 1 full time HR staff person to 140 employees. This means fewer full time staff are required to manage workforce information, which results in thousands of dollars saved on an annual basis.
3 Information Accessibility
Companies that rely solely on documents and spreadsheets to track employee information end up creating large files filled with information. In such cases, security and sensitivity of the data becomes a concern. However, by making this info accessible through an HR software, the staff are able to access their data via a central HR system.
4 Informed Decisions
By having all your employee data in a single, consolidated place, you create analytical opportunities that can help you make knowledgeable decisions. For example, your company may have a department where there is a high employee turnover rate. By looking at the data, you can determine if the person leaving worked under the same manager, whether they required more training, if they shared similar characteristics and if they were recruited from the same source? You can use this data to make informed choices such as improving hiring efforts, implementing necessary training programs for the manager in that particular department, etc.
5 Improved Communication
HR systems have an employee directory. Although employees who work in one team tend to share their contact information, sometimes their task might require communicating with team members from a different department. If this contact information can only be accessed via a filing cabinet, it slows down communication. Accessing contact information through an HR software program is faster and more efficient.
6 Mitigate Risk
Sometimes a legal dispute might arise where an employee states they weren’t aware of a specific policy. Although you might have sent this employee an email and a hard copy of the policy, they can deny ever seeing it. HR software systems utilize a ‘read and accept’ option that leaves a trail showing that a staff member was sent a specific message and they also accepted the contents of message.