What do you think of when we say a cost-effective payroll system? Is it a system with low implementation costs? Or is it a system that gives you a low price per paycheck? Or is it possible that the picture is more complex than that? At Sariba, we have over 25 years of experience in payroll and payroll systems , and therefore know a lot about what a cost-effective payroll system entails. A little hint: It's about more than the implementation cost.
Automate payroll employee tasks
For a payroll system to actually be cost-effective, it's not enough that it costs little to set up. You have to look up and look at the entire process. What manual tasks are your payroll staff spending time on that could have been automated? Do you have a complex solution with a lack of control over guidelines and legislation, which can lead to shortcomings and manual errors? Do you have the reporting capabilities 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
- Is user-friendly and predictable
Let's elaborate!
More efficient - less errors
A cost-effective payroll system should ensure that your payroll process is efficient by reusing data that is already registered in the system. This could be personal data (also called master data), or data related to time registration, travel expenses or expense reimbursement. When this information is reused, the process becomes more efficient because you avoid double registrations. Double registrations are, as we know, a source of errors that we would rather not have. When you reuse data, you should also be able to automatically report both pension and reimbursement. If you have a good payroll system, you will reuse information from payroll and registered absences. In addition, the payroll system should have good solutions for changes both forward and backward in time. The payroll system should therefore make it possible for 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 backward in time, and automatically recalculate correctly payroll for you. A cost-effective payroll system should also include automated calculations, controls and processes. When you automate the payroll process, you will move experience and logic from the heads of key employees and into the solution. This will make you less vulnerable in the event of illness, vacation, or if someone with key skills decides to leave your company.
A payroll system that supports the guidelines
We believe that a cost-effective payroll system must support Norwegian payroll - and government reporting, so that statutory changes in laws and regulations are taken into account 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 remember GDPR! A good payroll system allows you to see who has changed personal data, where the change comes from, and when the change was made.
Better management, fewer errors
Did you know that there are solutions that allow you to detect 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 payroll system. When we talk about better management, we also think about reports. A good payroll system should come with good, user-friendly and intuitive reporting options and reports. These reports should give you both overview and control, and should be high on your priority list.
Streamlining the process
A good payroll system is fully integrated with time registration, 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 should be paid. Where is the employee located, both physically and organizationally? Is the employee entitled to evening allowance or perhaps other allowances? All this information should be in the system, and in this way handled and calculated automatically. If your payroll system has manual calculations, for example of holiday pay, we would argue 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 easy to learn and use. For example, does your payroll system have the manual for payroll integrated into the system? By choosing a solution that does just that, the system ensures that you do what you need to do in the right order. If the solution is good, it also documents the choices and steps taken, which is quite smart considering GDPR. When all this is in place, the payroll process will be perceived as predictable both in terms of time and cost.
Should you change your payroll system?
If payroll processing today is perceived as time-consuming, vulnerable and unnecessarily complex, it may be a clear sign that the payroll system no longer supports the needs of the business. A modern and cost-effective payroll system should not only ensure correct payroll at the right time, but also free up time, reduce risk and provide better control. If payroll employees spend a lot of time on manual checks, double-entry or troubleshooting, the real cost will be far higher than what is shown by the license price and implementation. By assessing the entire payroll process as a whole, including automation, regulatory compliance, reporting and GDPR, you get a much better basis for decision-making. For many businesses, changing payroll systems will therefore not be a cost, but an investment in safer operations, better quality and more efficient use of resources over time.
