According to Score.org, 40% of small business owners spend over 80 hours every year on payroll administration. It is indeed a crucial decision if your organization is considering switching to payroll software. The right HRMS payroll software can help your organization save time & money while also providing you with improved accuracy and convenience. This article acts as a comprehensive guide to help you evaluate various factors and will help you choose the right payroll management system for your organization.
How to Choose the Right HRMS Software?
To find the right payroll software, it is important to establish your priorities. This will give you better clarity on your requirements and help you avoid unnecessary software or features that may not align with your requirements. Some of the most important factors to consider while choosing a payroll software includes:
- The size of your business
- Number of employees
- Budget for software
- Basic requirements
8 Key Factors to consider while Choosing the Ideal Payroll Solution
1. Employee self service
Gone are the days when employees had to follow the tedious process of sending official emails to get to know the pending leaves. Employee self-service is a revolutionary feature as it provides instant information and transparency to employees. It also helps to track their attendance, get manager approvals, apply for leaves and download pay slips and access personal information.
2. Leave and attendance management
Managing employee leave and attendance data poses significant challenges due to the need for accurate check-in/out timings, shift hours, and leave records. However, a payroll management system can help track precise clock-in timings, attendance records, and seamlessly integrate them with employee profiles. This integration streamlines manager approvals, pay slip generation, and real-time attendance tracking, simplifying the entire process for hassle-free workforce management.
3. Full and final Settlements
The process of full and final settlements can be tricky as it requires resolving salary discrepancies based on an employee’s tenure and organizational policies. However, payroll solutions can automate the entire process, from leave encashment, bonuses, gratuity, and deductions, ensuring precise and prompt settlements. This streamlining of the exit process not only saves time but also minimizes manual errors.
4. Data Security
Data security is one of the major concerns for all organizations, irrespective of their size. As payroll solutions involve processing of sensitive data, many businesses are often hesitant to implement them. However, relying on manual labor is not a viable option. And so, if you are planning to switch to a payroll solution, make sure you use software that strictly adheres to all security protocols. To ensure data security, look for features such as encryption, access controls, and regular security audits. Choosing software with a solid track record, strong ratings and reviews, and substantial market presence can provide better reliability.
5. Pay slip generation
Generating pay slips requires handling varying salary components like deductions, reimbursements and any salary hikes or appraisals. A payroll software can streamline this daunting task, with a standardized template& automated, precise calculations for all deductions and hikes, facilitating a seamless and error-free pay slip generation process.
6. Payroll reports
Managing payroll reports can present significant challenges due to the numerous components involved for each employee. These reports are critical as they determine a company’s financial liabilities. Payroll software offers an effective solution by automating the generation of payroll reports with components such as Cost to Company (CTC), incentive calculations, attendance tracking, deductions, insurance, Dearness Allowance (DA), special allowances, and more. It can also efficiently handle aspects like full and final settlements and streamline the overall payroll management process.
7. Statutory Compliance
Maintaining legal compliance is vital for the sustained growth of any business. Non-compliance can lead to various complexities. With payroll software, companies can streamline the process, and stay updated with labor laws and regulations. Look for a software that offers additional features like tax calculations and deductions such as EPF and ESI among others, simplifying the process for both employers and employees. It ensures that your organization is compliant to all labor laws and regulations.
8. Location based features
The integration of location-based services, like geofencing and geotagging, into payroll software enables efficient tracking and recording the time & attendance of offsite employees. This feature enables organizations to automatically monitor employee attendance by establishing a geographical perimeter around the workplace. The automation of time reporting enables companies to produce accurate & reliable attendance data.
In short, payroll system is a long-term investment & asset for any company. And so, it is important to consider factors such as the size of the organization, number of employees along with the aforementioned features, before investing in any HRMS payroll software. Make sure to choose a system that emphasizes user experience has reliable customer support, and robust data security just like PayWheel.