What do you think of when we say a cost-effective salary system? Is it a system with low implementation costs? Or is it a system that gives you a low price per payslip? Or is it conceivable that the picture is possibly more complex than that? We at Sariba have over 20 years of experience in the field payroll , and pay systems and therefore knows a lot about what a cost-effective pay system entails. A small hint: It is about more than the implementation cost.
For a payroll system to actually be cost-effective, it does not mean that it costs little to set it up. You have to look up to see the whole process. What manual tasks do your salaried employees spend time on that could strictly have been automated? Do you have a complex solution with a lack of control of guidelines and legislation, which can lead to deficiencies and manual errors? Do you have the reporting opportunities you need, or is reporting a large and complex task? We believe that a cost-effective payroll system:
- Is effective
- Supports guidelines
- Gives you better control and reduces errors
- Streamlining the process for you
- Is user-friendly and predictable
Let's elaborate!
More efficient - less errors
A cost-effective payroll system should ensure that your payroll process becomes efficient, by reusing data that is already registered in the system. This may concern personal data (also called master data), or data relating to time registration, travel bills or expense reimbursement. When this information is reused, the process becomes more efficient because you avoid double registrations. Double registrations are, as you know, a source of errors that we would prefer to be without. When you reuse data, you should also automatically be able to report both pension and reimbursement . If you have a really good payroll system, you will reuse information from here payroll and registered absence. In addition, the pay system should have good solutions for changes both forward and backward in time. Your payroll system should therefore enable you to enter changes forward in time, without this affecting the result before the date has actually passed, and it should allow you to enter changes backwards in time, and automatically recalculate correctly payroll for you. A cost-effective payroll system should also contain automated calculations, checks and processes. When you automate the payroll process, you want to move experience and logic out of the heads of key employees and into the solution. This will make you less vulnerable in the event of illness, holiday cancellation or if someone with key competence decides to leave your company.
Support guidelines - both today and in the time to come
We believe that a cost-effective payroll system must be supported Norwegian payroll - and authority reporting, so that statutory changes in laws and regulations are taken care of in the system, both today and in the future. Here, as in the point above, we would recommend that you move logic (and regulations) into the solution. We generally think this is a good idea. In addition, it is important to keep in mind the GDPR! A good payroll system lets you see who has changed personal data, where the change comes from, and when the change was made.
Better management - less errors
Did you know that there are solutions that allow you to uncover errors in payroll , before finally payroll actually run? This is something you should definitely look into, and which we believe should be part of a cost-effective salary system. When we talk about better management, we also think of reports. A good payroll system should come with good, user-friendly and intuitive reporting options and reports. These reports should give you both an overview and control, and should be high on your priority list.
Streamlining the process
A good salary system is fully integrated with both time registrations, travel and expense reimbursements and finances. If you have a really good solution, it also forms the basis for reimbursement from NAV, and prepares transfers to the bank. A cost-effective payroll system also uses master data as a starting point for how the employee is to be paid. Where is the employee, both physically and organizationally? Is the person entitled to evening allowance or perhaps other allowances? All this information should be found in the system, and in this way handled and calculated automatically. If your payroll system has manual calculations, for example of holiday pay, we will be free enough to claim that this is not a cost-effective system.
User-friendly (and predictable)
Last but not least, a cost-effective payroll system should be user-friendly! It should come with logical menus and processes that are both easy to learn and to use. For example, does your payroll system have the driving record for it payroll integrated into the system? By choosing a solution that ensures just this, the system ensures that you do what you have to in the right order. If the solution is really good, it also documents the choices and steps that are taken, which is quite smart in terms of GDPR. When all this is in place, the payroll processing process will be perceived as predictable both when it comes to time and cost.
Briefly summarized
In short, we would say that a cost-effective payroll system is more than both implementation costs and price per paycheck. You should look up and see the whole process as a whole, and also think GDPR.
Marita Johansen
Did you know that at Sariba we have over 20 years of experience with HR and payroll and that all our payroll consultants have practical payroll experience? If you need someone to talk to or if you want to know more about how we can help you, please get in touch.