Payroll is a significant aspect of business operations, both financially and administratively. With a streamlined payroll process, organizations can ensure that their employees are paid the right amount on time, avoiding penalties and miscalculations that can be detrimental to their financial stability.
However, according to recent reports, a quarter of all workers in companies with 20 or fewer employees have had paycheck errors, resulting in disengagement and costly fines. Considering that Middle East payroll consists mostly of small and medium-sized enterprises (SMEs), it becomes vital for all organizations to engage in cloud payroll solutions to gain a competitive business advantage.
What Benefits Do Payroll Software Offer to Businesses?
Payroll software offers several business advantages such as quickly and securely generating pay slips, reducing the likelihood of mistakes, and automating monitoring systems in order to accurately and timely release employee compensation. This is beneficial because:
- It Increases Employee Productivity
According to related case studies, reliable payroll services, along with the right amount of compensation, increases employee productivity for two main reasons. First, current workers would have more to lose, preventing them from slacking off. Second, they’d feel like they have to reciprocate the organization, triggering them to put more effort to “pay back” the original favor. Why is this significant in gaining advantage?
Increasing employee engagement investments by 10% can increase an organization’s profits by $2,400 per employee per year. Indeed, employing cloud payroll solutions can go a long way.
- It Helps in Employee Retention
Employees have little tolerance for mistakes involving their compensation. In fact, 49% of them will begin a new job search even just after two paycheck errors. With the help of payroll software, these common payroll mistakes can be eradicated.
Cloud payroll solutions have for their features customized pay element setup and rules, which allows the system to process payments and calculate them automatically according to organizational payment structures and state regulations, reducing the possibility of human error. However, in the event that minimal errors still occur, payroll managers can use auto-reversal of calculations feature to easily correct them,
- It Streamlines Administrative Processes
Manual payroll processing can take up a lot of time. In fact, 40% of business owners spend more than 80 hours per year for payroll and tax processing, considering that the process typically involves a lot of transactions — from counting timecards to calculating deductions and commissions. Through payroll software, these manual processes can be dispensed with.
Payroll software makes use of robust technology that allows payroll managers to set payments on pre-scheduled dates, allowing them to upload reports on attendance, deductions, and commissions for the system to automatically calculate. This allows them to avoid chasing cut-off periods, and eventually, focus on more integral business matters.
Given all the benefits that a payroll software can offer for the long term, there can only be one answer to the question of whether or not they offer competitive business advantages — yes. Especially now that working conditions are starting to change and employees are beginning to become more firm on their needs, it is vital to start leveraging technology and start engaging in cloud payroll solutions.
If you are an SME or an established firm in the Middle East, start your payroll optimization by reaching out to BSH Soft for a reliable and robust cloud based payroll system from Dubai.