Every day, technology companies are producing new mobile apps and software solutions to solve every problem under the sun – including some we didn’t even know we had. But for many in the payroll industry, the old saying may still feel true – the more things change, the more they stay the same. While the enterprise application market is expected to garner $213.43 billion by 20201, why are some payroll specialists living with manual payroll payments and processes?
Big or small, companies can leverage digital solutions to address and overcome old pain points of payroll. How? Let’s dig deeper:
- Automate Manual Processes and Reduce Errors
Research from the American Payroll Association and Javelin Strategy & Research showed that 88 percent of payroll spreadsheets contain errors, and manual errors account for up to eight percent of payroll costs2. Is your company relying heavily on manual payroll processes every month? Spreadsheets, manual processes and issuing paper checks all increase the likelihood of errors and can make payroll tracking more difficult. Digitizing payroll programs allow companies to minimize manual processes and, ultimately, reduce errors. With Paycards, you can distribute money to your employees through an online portal, so it only takes a few clicks. Embracing automated systems and innovative payments solutions like Paycards for payroll programs helps companies streamline operations, reduce errors and provide checks and balances.
- Digitizing Payroll Makes It Easier to Manage Staff Turnover
Adopting Paycards and digital systems enables your company to better manage staff turnover, including your payroll team. Digitizing employee pay helps staff keep better records and delivers more continuity across documentation and implementation procedures. And, integrating payroll of all types into one system gives better visibility across the organization, ensuring you are not overly reliant on any one person. This is especially relevant in high-turnover industries like retail and restaurant, where automating systems and minimizing paper checks can significantly reduce payroll time spent on constant employee churn. And, because Paycards provide workers quicker access to their money, and some cards even offer budgeting and saving tools, workers can achieve more financial stability, which can improve turnover rates.
- Electronic Payroll Allows Employees to Self-Service
Shifting to electronic payroll and Paycards allows your company to offer employees access to self-service the simple things like viewing their last pay stub, printing tax statements, checking their balance and even paying their bills. Giving employees the ability to self-serve for small tasks minimizes the burden on payroll teams and can help companies use payroll staff more efficiently.
- Automation Makes Digital Record Keeping Easier
Issuing paper checks still requires manual processes to reconcile and follow up on checks not cashed, and it may produce hefty paper trails. Moving away from paper payments streamlines digital record keeping and allows companies to more easily comply with the U.S. Department of Labor requirements to preserve payroll records for three years3. Getting to electronic payment for as many payroll payments as possible streamlines and automates the reporting and record-keeping process, and makes lost, damage and stolen checks a thing of the past.
- Pay Employees On Time, Every Time with Digital Systems
No matter your pay schedule, employees expect their paychecks to be accurate and on time no matter what. Late or incorrect payroll is the practitioner’s worst nightmare and comes with a whole host of problems including angry employees, publicity problems and the consequences of non-compliance. Digital payroll solutions and Paycards allow employers to support the ability to make payroll on time, every time. Digital systems have tools in place to help ensure accuracy, and Paycards eliminate the uncertainty of mail and delivery and ensure the payments can be made at the exact right time.
If your company is still pumping out paper payments, it’s time to re-evaluate. Ditching antiquated payroll programs for digital solutions like Paycards streamlines payroll operations, makes record keeping easier and more accurate and satisfies payroll teams and the employees they serve.
Learn how your company can adopt digital Paycard solutions that deliver.
1 Allied Market Research, July 2015, “Enterprise Application Overview” https://www.alliedmarketresearch.com/enterprise-application-market
2 Sage, May 31, 2018, “Five Simple Solutions to the Biggest Payroll Challenges” https://www.sage.com/en-us/blog/solutions-to-payroll-challenges/
3 U.S. Department of Labor, July 2008, “Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)” https://www.dol.gov/whd/regs/compliance/whdfs21.htm