It’s that time of the month again – payroll.
This may well be an exciting time for your team members who are anticipating payment, but not for you, or whoever is responsible for payroll. You know exactly how much time and effort it takes, and if the process doesn’t go smoothly, you could end up with some issues – including ornery employees.
If you’ve ever considered outsourcing or automating payroll, then an electronic payroll provider might be exactly what you’ve been looking for. All you need to do is supply the provider with relevant details. They’ll input the data into the software, and the rest will essentially take care of yourself.
Why should you use an electronic payroll provider? Here are three compelling reasons to consider it.
1. It saves you time
Manually handling payroll can be time consuming. You already know that. But in the grand scheme of things, that’s just the tip of the iceberg.
Frustration tends to trickle down to your employees when their check or direct deposit takes a surprising amount of time to clear.
Last year the Canadian Payroll Association conducted a survey and reported that 47 per cent of respondents said it would be difficult to meet their financial obligations if their paycheque were delayed.
Walk a mile in the shoes of your team members who are counting on that money to come through on the designated date. How would you feel if there was no money in your account when you expected it to be there? If you couldn’t pay your bills on time, would you feel irritated, or worse?
Another consideration is the amount of time and energy it takes for someone on your team to do. If they have other tasks and assignments to complete, and they also need to finish payroll by a specific deadline, they might be overloaded already.
If you used an electronic payroll provider, you could put the process on virtual autopilot and get it all done in a timely fashion. You could free up you or your employee to work on more high value tasks. This could also reduce your overhead.
2. When people are paid on time, it improves your corporate culture
Again, for better or for worse, the stats show roughly half of your team members are living paycheck-to-paycheck. They’re counting on that check for their survival.
When the money doesn’t come through for them, they begin to question your company’s integrity.
Things only get worse when your company is in the public spotlight receiving praise and winning awards. Why is it that a business like that can’t pay their people on time? Do they have cash flow problems? What are they doing with the money?
These are the types of questions your employees will begin to ask, regardless of what’s happening behind the scenes. If the procedure hasn’t been adequately explained, and your team is expecting to see their money on a specific date, and it doesn’t come through, their motivation level is going to go down. There are dangers to not paying on time.
By contrast, if your team members get paid on time without fail, it will improve your corporate culture and motivation levels will soar. Your team members be happier working for you, and you’ll retain your best talent for longer. It’s a win-win.
Another benefit of using an electronic payroll provider that may not be immediately apparent is data security. If you’re processing data in-house, no matter how good your firewalls and other security measures are, there’s a chance sensitive data can be leaked or tampered with. A quality service provider will store your data on highly secured server to ensure it is protected.
3. You can leave deductions to someone else
There is quite a bit of documentation out there around how to handle deductions.
But no matter how much you simplify it and break it down into a step-by-step process, it’s still a painstaking procedure. Plus, you don’t want to make any mistakes, because you’re going to be submitting your reports to the government. Mistakes, unfortunately, can cost you.
If your electronic payroll provider was handling this on your behalf, it could happen like clockwork and without your direct involvement.
Wouldn’t that be a relief?
In summary, we’ve looked at how working with an electronic payroll provider can save you time. We’ve looked at how using a service like this can keep your employees happier. We also examined how you can leave deductions to your chosen provider.
There can be other benefits, including reduced overhead and better data security. All these advantages make using an electronic payroll provider a wise thing to do for your company.