Striving for Efficiency: 5 ways Payroll makes Businesses More Effective

17 April 2015

It's not only about getting wages into the hands of employees. Whether carried out internally or outsourced to a professional payroll provider, payroll has wider benefits to a company's business. A well managed payroll has the potential to create improvements and efficiencies across your business.

Workplace Flexibility

Taking a flexible approach to hours and work schedules can be highly beneficial to employers and employees alike. Job sharing programmes can allow critical, skilled employees with external responsibilities to remain with a company. Employers also benefit from having the combined experience of two or more employees occupying a single position.
Flexi-time allows employers to fill positions as they are needed without having to pay full time wages. Employees can work hours that suit them while meeting other commitments.
One of the primary challenges workplace flexibility can pose for a business is for payroll. However, a well organised payroll system can facilitate workplace flexibility. Use of cloud based payroll systems can prove particularly beneficial in making workplace flexibility run smoothly.

Business-wide Integration

To make optimal return on a company’s investment in payroll, integrating it with other elements of the business is vital. HR is a particular area where there is natural and very beneficial overlap with payroll. The more effectively a business can integrate these aspects of the business the more efficiently the business will operate.
Recording employee data such as overtime, holiday and sick leave are necessary for both HR and payroll. Where HR and payroll are not effectively integrated there is likely to be duplication of these and other record keeping creating unnecessary ongoing costs for a business.

Changing Tax Regulations

Ben Franklin famously said nothing is certain except death and taxes. While taxes may be inevitable the form they take certainly changes. The ability of a business to adapt to these changes is critical to its efficient running.
An effective payroll department or outsourced service needs to be aware of all updates to tax legislation regarding payroll and taxation of wages. Understanding these ongoing changes and the effects they have gives a company broader insight into company-wide tax strategies.

Data Feedback

Payroll doesn’t just give a business greater insight into its tax approach it also provides a great wealth of data. With a comprehensive data gathering system in place payroll can provide a number of KPI‘s that inform businesses as to where savings and other efficiencies can be made.
Payroll data can also provide useful feedback in terms of ensuring employee job satisfaction. Confirming that salaries match industrial standards helps to minimise turnover by providing competitive pay rates. Finding space for performance related bonuses can also be made easier resulting in a more effective and contented workforce.

Specialists Services

Beyond calculating and paying salaries, specialist payroll service providers can often provide businesses with a range of extended services. CSO filing, advice on legislation and compliance and liaising with revenue are just some of the additional services a specialist provider can potentially offer.