June 28, 2022
Payroll is one of the most complex, yet vital processes involved in human resource (HR) management, affecting not only the engagement of employees, but also their satisfaction. In fact, according to experts, poor payroll management can result in poor company reputation, as workers lose their confidence in their employers. Especially now that state regulations as to wages are becoming more stringent, with added mandatory benefits that companies are bound to follow, it is a crucial time for organizations to automate their payroll processes for more accurate and timely transactions.
Benefits of Automated Payroll
- Minimization of Errors
Payroll management involves not only a bulk of time-keeping records and documents, but also various employee groups with different pay scales and work schedules. As HR managers manually calculate the pay of each, committing mistakes becomes inevitable. In fact, according to experts, those who use traditional timecards commit an error rate of 1-8%, costing businesses $845 a year in penalties.
To minimize, if not eradicate the errors involved in manual payroll, automating the process becomes vital. With a payroll software that accurately calculates salaries and allows bulk upload in order to generate detailed reports, HR managers will be able to release employee payments without delay and error, increasing job satisfaction among workers in the long run.
- Data Security
Payroll processing typically involves a large amount of confidential information, such as employees’ names, addresses, Social Security numbers, and bank accounts, which can expose them to identity theft if not handled properly. Aside from that, a poor data security system can also subject organizations to penalty, as more countries implement more stringent data protection laws.
To avoid the risk of leaking important data, payroll software incorporates firewalls, encryptions, and vendor solutions that reinforce secure systems, allowing organizations to keep sensitive information safe from being lost or shared with unauthorized persons.
- Improved Record-Keeping
The UAE government has recently issued Federal Law No. 33 of 2021, which requires all companies in the private sector to retain employee records for two years after the termination of employment. With this, companies would have to process and keep additional documents, along with time-keeping cards and relevant payroll records, which may result in record-keeping difficulties.
With payroll automation, however, companies can leverage a software where they upload payroll records as CSV or XLS files, allowing them to easily track expenses and import additions, deductions, and commission payments for an automated salary calculation. In the long run, this will help them manage their records better, as all the necessary payroll documents can easily be pulled up whenever necessary.
Take a Step Further with Automated Payroll
With all these benefits, it’s no surprise that using payroll software will not only benefit employees, but also organizations, allowing them to have better transactions and reach a better working relationship.
Take a step further and start automating your process with a reliable payroll software in Dubai. Reach out to EmiratesHR for more information.