If you run a business of any shape or size, you probably spend a disproportionate amount of time figuring out how to pay employees. According to the latest studies, a full 40% of all businesses list payroll as the single worst aspect of owning a business.
Payroll can be time-consuming and anxiety-inducing, not least because of the often hefty legal penalties businesses face for improper payroll compliance. If this is how you feel amount payroll, then you are in dire need of a payroll system upgrade. But where do you start, and what needs to change if you want to construct a simple and sustainable payroll management strategy? Read on to find out.
1. You Spend Too Much Time on Paperwork
The first red flag that your payroll system needs overhauling is that you a spending a huge amount of time dealing with paperwork. Your regular payroll updates should be fully automated and require minimal input from any person on your team. If your payroll is eating into your business hours, you have a problem.
This is why it is important to choose a quality local payroll service that can take care of all of your payroll needs for you, meaning you can focus on growing your company.
2. Staff Turnover is High
Quality employees are your company’s most important asset. When vital HR functions such as payroll are a mess, the best employees are the first to notice. Many will see poor payroll as a sign of bad organization and may feel that their position is not secure as a result.
Poor payroll can often lead to high staff turnover, which can have devastating consequences for your business. Avoid this by investing in a flawless payroll system that allows for consistent weekly or monthly payments.
3. You Have Never Had a Payroll System Upgrade
Another sign that your payroll system needs overhauling is if you have never done so before. Oftentimes, the main cause of bad payroll practices is that a business owner has inherited a faulty payroll system, or has approached their payroll on a chaotic, ad-hoc basis. You will need to sit down and take an honest look at your payroll system. Do not put this task off.
4. You Are Using Multiple Platforms and Systems
If your payroll system requires multiple platforms, software applications, and systems in order to complete, you need to stop what you are doing immediately. There is absolutely no reason whatsoever why anyone should be spending more than a couple of clicks on payroll activities. If you are using multiple overlapping solutions, you are wasting everyone’s time and money.
5. Payroll is Costing Your Business Money
If your payroll system budget is anything other than small and manageable, something needs to change. The labor hours and expenditure on payroll should form a very modest part of your overall business expenses. By selecting outsourced and automated payroll services, most business can reduce their payroll costs by around 80%. If you care about your bottom line, you should be doing the same.
Simple Tips for Better Business Practice
Understanding the benefits of a payroll system upgrade is just one way to incorporate better business practices into your life in 2021. For more tips on running your business like a boss, we have got you covered. Make sure to consult our expertly-curated Business Section to learn more.