The importance of simple HR and payroll solutions: Tech Wire Asia’s recommendations 2023
While sometimes overlooked in the cogs of industry, HR departments play an essential role in all businesses. After all, they are responsible for managing the lifeblood of any organization: its people.
With such large responsibility, it is imperative that the HR system they and the rest of the staff use is efficient and user-friendly. A tangled web of procedures and policies confuses employees, resulting in errors, miscommunications, and decreased efficiency. Frustrations with HR software can discourage its use, meaning missed opportunities for employees to access vital resources that boost morale, like company benefits.
Payroll services are equally important to a company, an integral part of Finance and HR. Naturally, it is a priority for staff; one survey of Australian workers found that 58 percent list ‘salary’ as the single most important aspect of a job. Payroll must be accurate and timely to ensure employee satisfaction, but also so the company stays ahead of the ever-changing regulatory landscape. However, an overcomplicated payroll system can lead to errors in salary processing, tax calculations, and benefits administration. These errors not only result in financial stress for employees but can also lead to noncompliance and, thus, costly legal issues for the company.
A way around these potential headaches is to keep the systems the company implements as simple and well-integrated into workflows as possible. Simplified HR software enhances efficiency by streamlining administrative tasks, reducing manual data entry, and automating routine processes. This not only saves time but also minimizes the risk of errors, ensuring accurate record-keeping and payroll processing.
Research has found that almost 70 percent of employees with one HR platform felt confident they could find the information they need, but confidence plummeted to 49 percent among those whose company used more than one platform.
A user-friendly HR system also allows staff to handle tasks like requesting time off, accessing training resources, and claiming employee benefits independently, thereby encouraging them to do so and boosting job satisfaction. For the HR team, a streamlined system provides data-driven insights, aiding strategic decision-making. It can access real-time data on workforce trends, helping it optimize recruitment, training, and retention strategies.
When it comes to a simplified payroll solution, one of the most significant benefits is improved cybersecurity, which is especially necessary in this era of remote and hybrid work. According to a 2022 survey of senior leaders with payroll responsibility, almost two-thirds of respondents said their payroll operation had been impacted by a cybersecurity breach at least once in the last two years. Nearly one in four reported that their payroll operations had been affected by three or more such breaches in that time.
Any simpler system reduces the complexity that often invites cybersecurity vulnerabilities. With fewer intricate components and a more straightforward design, the risk of security breaches is significantly lowered. All staff data is also kept in one centralized location rather than multiple insecure platforms like emails, Excel, or Google Sheets. This enhanced security not only protects sensitive financial data but also safeguards the organization’s reputation and financial stability.
The same survey of senior leaders with payroll responsibility quoted above found that just nine percent spent less than five hours a week reconciling data between HR and payroll systems, while 60 percent dedicated between six and 25 hours. This demonstrates that there is definitely a need for many offices to upgrade their HR and payroll systems, particularly those that offer robotic process automation (RPA). Over half of the respondents said that RPA makes up less than 30 percent of their payroll processes, meaning they still have to spend time on tedious, repetitive tasks.
What’s more, according to the survey of Australian workers, more than a third are still being paid incorrectly. The survey of senior leaders with payroll responsibility showed that, of all the payroll queries a business receives, 26 percent have to do with disparities between the hours worked and their pay, and 15 percent concern inaccuracies in net income. A fit-for-purpose automated solution could significantly alleviate these issues.
Here are four pieces of HR and payroll software that have caught our eye at Tech Wire Asia:
ADP – Comprehensive HR services
For over seven decades, ADP has been a trailblazer in HR and payroll services, and its commitment to innovation is evident in every facet of its offerings. Its payroll products are designed with a user-friendly interface that ensures ease of use for HR professionals.
Whether it’s managing payroll, handling employee records, or tracking time and attendance, ADP simplifies these tasks, freeing HR departments to focus on more strategic initiatives. This simplicity extends to employees as well, as they can easily access their payroll information and HR resources without unnecessary complexities.
In ADP Workforce Manager, tasks such as payroll processing, employee onboarding, and performance tracking are automated, eliminating manual work and mitigating the risk of errors. This not only saves time but also ensures compliance and precision in HR functions.
Employees also benefit, as they gain access to portals that simplify HR-related tasks like reviewing pay slips and updating their personal information. This self-service approach empowers employees by giving them transparency and control over their employment information.
ADP GlobalView Payroll, targeted at large multinationals, provides a single system of record for payroll across over 140 countries while helping minimize the risk of cyber threats. It also offers HR admin tools and reporting options, and encourages direct employee interaction with their pay, all while integrating seamlessly with other HCM software. This level of integration ensures data accuracy and consistency across all facets of HR management.
Deel – Remote hiring platform
Deel is a digital platform designed to simplify global hiring and payments for businesses with remote or international team members through Employee of Record (EOR) services, contractors, global payroll, immigration, and more. This holistic approach means companies can rely on Deel for end-to-end global workforce management.
One standout feature is contract generation, which simplifies the creation of legally compliant employment contracts tailored to the specific needs of each country. This not only saves time but also ensures that HR departments maintain legal compliance, a critical aspect when hiring international talent. Navigating the complexities of visas and work permits can also be a significant and stressful challenge. Deel provides guidance and resources to streamline the immigration process, ensuring businesses can secure the necessary documentation to employ talent across borders without a hitch.
Deel’s platform provides a centralized dashboard that HR staff can use to manage all employee contracts, making it easy to track, renew, or terminate agreements as needed. Additionally, Deel automates payroll processing, reducing the administrative burden on HR professionals. It handles currency conversions, tax calculations, and payments to international team members, ensuring accuracy and compliance with local regulations.
Expensify – Expense management
Expensify is a popular expense management tool that simplifies expense tracking, reimbursement, and financial reporting for businesses. One useful feature is its SmartScan technology, which enables users to capture receipts simply by taking a photo with their smartphone. It then auto-fills the expense report with details like the merchant name, date of expense, and total cost before Expensify’s own internal team checks the receipt against the log on behalf of the company’s finance team. This eliminates the hassle of manual data entry for staff and ensures accuracy in expense tracking. HR departments appreciate this feature as it simplifies employee expense submission, reducing administrative overhead.
Employees also benefit from Expensify’s rapid reimbursement process. The platform offers next-day reimbursement, ensuring staff are promptly compensated for their expenses, boosting morale and financial well-being. A chatbot will also remind staff if they still need to send or fully complete an expense form, which is handy when submitting them in bulk as it is easy to miss something.
By streamlining the expense tracking and reimbursement processes, Expensify reduces the risks of cyber threats associated with the manual handling of financial data. On top of encryption protocols and continuous security updates, this ensures that data remains confidential and protected throughout the entire expense management lifecycle, instilling confidence in both organizations and their employees.
Oracle Human Capital Management (HCM) – ERP-specific HR
Oracle HCM is an ERP-specific HR solution that stands out for its comprehensive capabilities tailored to large enterprises. Its deep integration with Oracle’s broader ERP solutions creates a seamless environment where HR, payroll, and financial data are interconnected. This ensures real-time visibility into financial transactions and allows HR teams to access critical data for strategic decision-making.
Oracle HCM’s integration with ERP systems opens doors to advanced analytics, allowing businesses to harness data-driven insights for workforce planning, recruitment and talent management. Furthermore, it enables a seamless data flow between HR, finance, and operations, leading to improved financial transparency and efficiency. Its robust payroll module handles calculations, tax compliance, and benefits administration with precision while continuously adapting to the ever-evolving regulatory landscape to reduce the risk of payroll errors and compliance issues.
Like ADP, it provides a user-friendly self-service HR portal; however, this solution is significantly more expensive. To justify the cost, the business might unlock the full potential of Oracle’s ERP by utilizing more of its wider suite of features.
Some of the companies featured in this article are commercial partners of Tech Wire Asia.
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