What is payroll management? The easiest answer would be that it’s a process of managing all financial records of your business. That includes salaries, bonuses, deductions, etc. The important thing is that these need to be carefully done, in accordance with labor laws and other applicable rules. And it’s all easy when you have all your staff located in one country, one place. Things tend to get a bit complicated once you start hiring people from abroad, for instance. Then, the possibility of making a mistake that will cost you in the future, increases.
In a way, how you handle this process, directly or indirectly, affects your company’s financial health and overall employee satisfaction. Effective payroll processing increases employee morale and trust in the company. On the other hand, poor payroll management, such as deferred wages, can upset employees. After all, your employees expect a regular salary, even if they are located thousands of miles away, meaning that your international global payroll system needs to be working like a swiss clock.
As was mentioned earlier, this is a key part of business, so it should be handled carefully. Any irresponsible action could lead to huge monetary consequences. However, business owners, especially managers in small industries, are unsure of the best ways to execute the payment process.
So, we have decided to list a couple of management tips and point out some common mistakes people make when there’s a remote team of workers involved in your company’s activity.
1. Keep things tidy and organized
Everything you do that includes paperwork, not to mention money, has to be well-organized. That includes your payroll process. The more organized it is, the better. Your tasks become much easier if you have all the records and documents in order.
One thing that can help a lot, especially if you handle a lot of people, is a payroll calendar. As all countries have their deadlines for different payments, it could help you keep track of important payroll tax dates and deadlines. Once you have all your deadlines covered this can further help you complete your tasks accordingly. So, when it comes to the most common mistakes you should avoid at all costs, failing to meet important tax deadlines is one of them. With the help of a calendar, you can avoid many mistakes and do your work efficiently.
2. Utilize technology in all its glory
As is the case with any other process, technology has found a way to make keeping records easy, safe, and practical. What used to be done manually, now can be automated with adequate software, including payroll. Don’t be afraid to use the latest software to get the most out of it. For example, there are certain web-based and HCM solutions that help small and large businesses manage and track compensation, deductions, benefits, and so much more. Since we are now way past the era of using computers, all of these solutions have Mobile Apps to perform all the necessary functions on your smartphone. This makes payroll management simpler, easier, and less time-consuming. These apps also offer various training capabilities that can be used to provide training to employees anytime, anywhere.
3. Organize training for your HR department
Everyone involved in this department usually has a basic knowledge of payroll management. However, if you want to make everything work and function perfectly, it is good to train them specifically in payroll. In other words, turning them into experts in this area. Additional training on rules and regulations connected to payroll is a good idea because they’ll understanding will become broader. It can reduce manual work and facilitate process streamlining.
4. Do data back up regularly
Loss of payroll data could lead to a major chaos in the company. This may cause a delay in the payment of salaries to employees, and may also lead to legal obligations. Therefore, a backup is suggested in case there is no chance of retrieving the lost data, especially if you are a small organization where the entire process is managed by two or three people.
5. Make sure everything complies with salary rules and regulations
Every business has to have a team of people working on making sure everything complies with relevant salary rules and regulations. Remote team vise, is an additional task, to study regulations elsewhere, and include them in the whole process. We’ve mentioned in the introduction par how the consequences of failing to meet these can be very serious, therefore having a specialized team of people working on this comes as a very good idea. Such an expert can not only help you avoid these mistakes, but also provide valuable feedback to optimize your existing process.
6. Don’t hesitate to hire experts when needed
Rules and regulations regarding this matter are constantly changing. It means you’ll need someone to keep up with it. Consider hiring an expert to find out if everything is going smoothly, at least from time to time. You can also outsource your services, it might seem like an expensive investment, but the savings, in the long run, outweigh the investment. Best of all, professionals and experts will know how to manage everything efficiently without making mistakes. Hence the risk of making a mistake will be minimized.
7. All payments should be done in a transparent way
When it comes to the payroll process, it should include every single detail of how the process works. This includes employee reporting responsibilities, and how wages and promotions are calculated. This is the basis of transparency. Not only should you document these, but also share them with all interested members. Your employees will love working in an environment where everything is transparent, and where there are no secrets.
After reading all of this, it is safe to conclude that the most important of all the processes in one company is payroll management. That is why it is important to handle it well, stay up to date with relevant information, and utilize technology in every segment, to make it well-working.