When it comes to payroll, “just OK” is never OK.
But what else can your HR team do besides submitting an employee’s pay and hoping it isn’t followed by an angry email or a panicked call late Friday because of a mistake? And that’s after they already spent hours on tedious data entry courtesy of an antiquated process.
They could try doing less and letting your employees have access to more.
With traditional payroll, addressing any discrepancies that can arise is a bit roundabout.
“Even the early and definitely second and third generations of employee self-service applications provided employees with visibility into their prior paychecks and pay advice, but the access was, by its nature, always backward-facing,” wrote, HR Technology Conference program chair and HR Happy Hour podcast co-host.
No payroll specialist knowingly submits an incorrect payroll, thus administering a correction is almost always a reaction.
But with employee-driven payroll, your HR department can be more proactive and focus on higher-level, strategic endeavors because the software guides employees through effectively paying themselves. And no, this doesn’t mean they can set their own compensation. Instead, the right HR tech empowers an employee to view, manage, and approve their paycheck--as well as ask for a fix if needed--before it hits their account, so it’s always correct.
The price of rectifying mistakes can add up quickly. When has cutting a makeup check or conducting an on-the-fly audit ever been convenient or cost-effective? And with a recent Ernst & Young study revealing that the average estimated cost of a manual HR task is now $4.70, per task per employee, the price of antiquated processes shows no signs of slowing down, especially as your number of employees rises.
The costs of corrections can quickly compound with untimely voids, wire transfers, direct deposit reversals, and rushed benefit modifications. By catching errors prior to submission, employee-driven payroll can lead to fewer fees brought on by corrections and adjustments.
And when payroll is inaccurate, your employees suffer. The American Payroll Association finds that 69% of Americans live paycheck to paycheck, proving that the accuracy of their paychecks is paramount.
Thus, employee-driven payroll offers an extra layer of protection courtesy of the people who know their pay best, so mistakes can be caught--and resolved--before submission, before they boil over into an emergency, and before they have a chance to chip away at your bottom line.
Employee-driven payroll may sound like a revolution, and it absolutely is, but when you consider the responsibility employees already have with self-service tech, it seems more like the logical next step.
By putting the power of payroll in employees’ hands, HR does ultimately do less. But more importantly, it enables them to do much, much more. By reclaiming their time, they can focus on strategy and other business-forward initiatives that make them a valued, indispensable partner to the C-suite. When HR professionals no longer have to spend time on employee data entry (and re-entry), they move out of the middleman role and get to do the impactful, innovative things that move your organization forward.
Are you ready to bring your business into the future of payroll? You should meet Beti™, the industry-first, employee-driven payroll experience from Paycom, declared a Top HR Product of 2021 by Human Resource Executive® magazine.
To learn more, read Why Employees Want (and Need) to Do Their Own Payroll.