HRs and the human resource sector take the payment of salaries for granted most of the time. Unfortunately, that’s one of the significantpayroll horrorsto get rid of when working in a firm.
It can happen when proper salary or payroll system is not in the firm. So salaries become difficult to calculate with multiple revisions and provisions.
Each employee has a different salary bar with various incentives aligned with their job roles, conforming to the company policy. However, it takes many manual hours to verify salary roll-out tasks at the end of each month.
But when HRs delay salaries, employees get upset. They start to lose trust. Eventually, they will look out for another company if this ignorance or negligence continues.
An HR has to face many other payroll horrors and learn disaster management at work.
So this blog teaches you about the top 6 payroll horror stories and examples. Reading those, as an HR, you can understand why it’s essential to roll out anautomated payroll system as soon as possible.
Human errors like misclassification of employees can occur anytime while calculating monthly salary manually. This way, you either underpay or overpay the concerned employee.
This will distort the internal branding of your modern and growing firm’spayroll management system.
It is something you want to stay away from at any cost – be it a big or a small firm.
When employees see that you don’t classify them correctly, they might start misusing that disadvantage. This could happen more in the case of contractual labour workers who get paid higher mistakenly.
Additionally, internal management conflicts can arise if you are underpaying an employee because of misclassification of their role or job title.
Without the enablement ofpayroll software in a growing company, this could be a significant issue. Miscalculating the salary of an employee (s) could be troublesome and loss-bearing for the firm.
If not addressed or rectified on time, the company would start becoming unable to pay the right salaries to their deserving employees. In addition, it leads to massive conflict between employees and the management.
The HR personnels are put on the standpoint to justify the miscalculation mistake. Such people can lose their job if the error is too high or in bulk.
All in all, this case helps no one. On the contrary, it only leads to frustration because, eventually, the company has to carry out the calculations again. This process will be time-consuming and require man-hours.
Employees will start growing disconnected and dissatisfied with this company culture. And we all know what happens when employees don’t trust the company: they start looking elsewhere.
That’s why it’s one of the dreadedpayroll horrors to get rid of. However, that is possible with a stable, reliable, and dependableuKnowva payroll management system.
Calculations are easy and automated. Therefore, there is less scope for human bias or manipulation using this tool in growing and modern Indian firms.
Another one of the payroll horrors to talk about is the absence of leaves and an attendance management system.
HRs might not have a factual idea about the leaves allotted, applied for, and rejected concerning their employees. That occurs when there is no system to track the live attendance and work hours invested.
In that case, calculation of salary is nearly impossible. Because without knowing the leaves and hours an employee worked for, how can a company roll out their salaries? If they do so, there will be a huge salary pay gap. As a result, some employees might receive over and underpay.
Then HRs will be responsible along with the management. But, again, it will be a disrespectful experience for employees. They won’t want to work in such a company.
Their only solution or alternative is to look for other jobs. This increases the attrition rate and creates a negative image for the company in the market.
Payroll or salary generation and roll-outs have to be on time. This is the first expectation from the employees out of the company when they join the firm. When payroll is delayed, employees feel betrayed and confused.
They are not sure what is taking the company so long to give employees their salaries for the hard work of that month. If this negligence continues, even employees would take a backseat and not perform well.
Gradually, they will want to switch to a company with a better policy for such episodes ofdisaster management at work. However, if there is any delay because of a technical error, employees must be notified in advance.
But this error must not occur every month. Otherwise, it shows that salaries are delayed deliberately. This ignorance and unprofessionalism will put off employees, which leads to them leaving the company sooner than expected.
Employees are clocking in for long hours because they either find profit or purpose in the assigned task. No one likes to work extra hours. They all have a personal life to maintain.
But if the company is not paying them for overtime, there is again a great level of disappointment amongst employees. This becomes one of the most talked-aboutpayroll horrors, which are difficult to rectify if the branding is impacted.
So companies must have auKnowva payroll management system. This tool helps automate incentives and overtime hours.
That is possible the payroll system is integrated with the hours clocked in. And employees are working extra hours, they will be paid for the extra time as well.
Every hired employee or contractual labour has taxation liabilities if they are earning regular income above the given exempted tax slab. The company has to help them deduct taxed amounts from their salaries and directly file the same to the government.
But without modernpayroll software, there might be miscalculations. If that happens, it’s again one of the most unprofessional payroll horrors. The final obligation to sort out the taxation would be on the employee.
Their CIBIL score could get hampered if the taxation amount is not filed or deducted properly.
Eventually, employers too have to participate in regularising their employees’ taxation amount. Because negligence and ignorance of calculating the right taxable salary won’t lead to negative internal branding.
Payroll horrors are not easy to solve. However, they must be addressed and talked about on time – even in small and growing companies. Because if HRs are unaware of these mistakes, their employees will suffer.
If employees suffer and receive aterrible workplace experience, they won’t act productive or remain loyalists to the brand.
Thus, it’s best to have anautomated payroll system in advance in the company. This helps remove all possible human errors, including bias, fatigue, miscalculations, and misclassifications.
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Payment complexity to employees increased over the years. Old ledgers, tax and accounting books, and excel worksheets are no longer the solution for successfulpayroll services.
Every small and growing business has to take care of payroll management services.
Now, this could be carrying out these services by self or depending on a payroll software. To make an educated and financially fail-proof choice, consider the difference between the two below.
At least that gives you a grounded start to pick a tool offered byuKnowva with the best of your mind and mood.
Outsourcing payroll services is an option for companies to hand-offs from these operations.
Third-party companies are available in the market for HRs to outsource financial tasks. This can also include managing every payment of your entire workforce from day one to the last.
Such companies can handle any payment for different labourers and workers your company hires.
You would have to explain the tax laws your company adheres to, especially when you deal with international clients and the workforce.
Availing of these services can be monthly, quarterly, or as desired and written in the contract.
These companies charge handsome fees foronline payroll services. But know about their pros and cons individually below.
1. Easy management of funds:
The biggest pros of afull service payroll are that your company doesn’t need to tackle it.
Instead, the third party would work out the finances and payable remunerations based on the integrated or supplied employee data.
Your company HRs would have more time to focus on other key roles of their profiles. These could be hiring, managing, and engaging the workforce to complete their tasks on time.
2. Assistance like nowhere else:
At present, your company might not have competent HR professionals and teams. That is most likely to happen at the starting years of commencement of the company.
That’s why outsourcing payroll services is a factor to leverage on.
Third parties offeringonline payroll services have advanced software and tools. Moreover, they pay for such services in bulk.
So handling a single client and their entire workforce's salaries and wages is not a problem.
1. Exhaustive costing:
The downside ofpayroll services, if you outsource them, is the total cost. It’s quite exhaustive and demanding.
You have to keep paying the third-party vendor or service providers. That’s for calculating the salaries on time with extra benefits like rectified tax deductions, salary slip generation on-demand, etc.
However, often vendors offer subscription models for payroll software services. These are for a limited period, though.
Eventually, for a smooth and seamless experience, your company has to pay them continuously every month.
These third-party companies might offer bundles for business groups too. But, again, those plans are costly and unsuitable for growing companies with tight margins.
Companies and HR teams can individually use online uKnowva payroll software. They don’t depend on external vendors.
It already offers them anESS portal for the self-serving and self-reliant nature of teams and employees.
Such online payroll service software is often reliant, internal, integral, and interactive. Learn more about them within the framework of their pros and cons below.
1. Easy management:
The software offersfull service payroll department needs in a company. It’s, for that reason, easier to operate thoroughly. Plus, there are no middlemen or external vendors.
HR teams can access the software if they have the expertise in managing workforce salaries on time and in bulk.
2. Automate payroll services:
Automation is one of the leading benefits of investing in the next-gen payroll software. Using it, HRs and their dedicated teams don’t fret over trivial payroll tasks.
The tool can assist them in creating a live dashboard, salary slips, rolling out salaries on predefined periods, and integrating employee data automatically.
3. Third-party app integrations:
Another advantage of using apayroll software is the easy and fast integration of the tool with other apps.
A company must be using different tools like CRMs, PMS, VB (Virtual Biometric), Microsoft Teams, Zulip, etc.
But such a modernised tool, uKnowva offers, gives you the benefit of integrating all apps in one network. As a result, you don’t have to go back and forth between multiple apps, as that is time-consuming.
Instead, resolve payroll queries, share valuable content, ask for a popular opinion from your teams, etc., within one system.
4. Accessibility is on the move:
With credentials,HR teams can access the software whenever they want to. Location doesn’t matter, and neither does time.
They need a stable network, a working mobile device, and the correct credentials for their account on the software.
After that, they can use the payroll tool available on the cloud to execute all necessarypayroll servicesfor the day.
It means there is no hamper in work quality and workforce pay management at any given time.
1. The learning curve might not be linear:
Not every internal staff is handy on the computer, on-cloud tools, and modern technology. They will need time to understand the growing perks of a point-and-click system accessible from anywhere.
And as trends change, so must the interface, deliverables, and objectivity of these tools. At times, dynamic changes might be difficult to understand for people who aren’t tech-savvy.
Thus, the learning curve for the inexperienced HR teams here is non-linear mostly. They have to be adaptable, agile, and ready for new changes in the system and the HR policy.
2. Human errors for triggered actions:
While managingonline payroll services on an automated tool, HR teams can fill in erroneous triggered actions and responses. This can lead to wrong information, analysis, and interpretation about the staff and salary.
Thus, admins have to cross check the system and its history. It helps verify the ID that initiated a change in the system off-lately.
However, that’s one more task for the admin to look after when HR teams are new and at a beginner level to monitor/operate the system.
I hope that new-age HRs and their teams understand payroll services vs. payroll software differences from the blog post above.
This is an important information to learn before your company invests in software for managing the workforce and their pay on time.
At least you now know the pros and cons of each side. This makes you smarter, like the uKnowva automated payroll system.
Lest, reach our sales team for a detailed demo on each one’s pros and cons explained above.
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