It is common for SMEs (small and medium sized enterprises) to do business without having a dedicated payroll system. They make do with whatever works for them. The efficiency varies from company to company, but 9 out of 10 times, it always makes sense to switch over to an automated payroll software solution. Take a look at some of the alarming signs your company is in dire need of a new payroll system.
1) Errors Popping Up Frequently in Payroll Generation
Employees expect to be paid on time, and to the last penny.
There are several ways to pay an employee, and most of these methods are 100% accurate. However, manual operations are prone to errors such as pay bumps not factored in, overtimes not being taken into account, and unrecorded salaries. Employees may let it slide once every now and then, but not on a monthly basis.
2) Employees Complain About Inaccurate Pay Slips
Employees will check their pay slips to validate its accuracy. If they’re not complaining about it, then things are looking good. The moment complaints start pouring in, it is time to review the person or software in charge of generating payrolls.
3) How Long It Takes to Readjust Calculations
It is okay to spend time configuring the payroll because it is one of the most important activities for the company. However, if it’s taking you too long to fix things, that’s another sign of an issue. The amount of time you spend double checking and triple checking is both time and money wasted.
4) Not Being Able to Pay on Time
Even if payroll generation is accurate, it won’t be of much help if your employees are not receiving their paychecks on time. This can have serious ramifications for your company depending on the time it takes for employees to get their paychecks.
5) Employees Leaving Your Company
It is common for employees to jump ship from one company to another for better prospects. If the turnover rate can be decreased by readjusting the payroll, then it is time to switch to an automated software payroll system.
A high turnover rate affects your company because you will have to keep up with employees leaving and joining at various times of the month and tracking down commissions and bonuses. This is far too much paperwork that could distract you from the core business operations.
7) Your Company Is Growing Its Operations
A cursory look at successful companies will show that over time, they increase their base of operations. This inadvertently means hiring new recruits and paying them on time. The last thing you need stopping the growth of your business is not being able to pay your employees on time.
8) Lack of Technical Support
When the most important deadline for your company is around the corner, it is a welcome feature to have a responsive support team that can be of immediate help in case files go missing or get corrupted.
If your company’s operations are becoming overwhelming because you don’t have a payroll system in place, it’s time to upgrade your payroll software. Head on over to JS Benefits Group to learn how our consultants can help you streamline your HR tasks to help you grow your business. Click here for more information.