Setting up Standard Operating Procedures (SOPs) from the initial phase is crucial for an organization’s growth. However, most organizations mistakenly set up or redefine processes only when they grow to a certain level. In most cases, this results in chaos and disruption in the company’s working environment.
Therefore, from its inception, an organization need to define essential procedures such as attendance policy and payroll with meticulous clarity. Payroll processing is crucial for the company’s success in the long run. Therefore, here we are discussing top payroll challenges that companies might face as they grow and how they can address them before they surface as problems.
1. GOVERNMENT COMPLIANCES:
The problem: Organizations need to comply with government rules and regulations such as gratuity, provident fund deductions etc. However, these rules keep changing, and organizations must stay updated to prevent penalties and legal troubles.
The solution: While organizations should stay updated with the changing regulations, in most cases, it becomes overwhelming for the company owners to do so. Therefore, it is wise to outsource the service to a third-party service provider.
2. REMOTE WORKFORCE:
The problem: Many companies have operations spanned across countries and the globe, with a massive workforce functioning remotely. However, one of the major challenges with a remote workforce is to track their attendance, performance and payments.
The solution: Organizations need to define clear policies and procedures, such as attendance and performance tracking for remote work from the beginning. With an expert’s help, they should also ensure that the company complies with local laws and regulations to avoid penalties.
3. TIMELY DISBURSEMENT:
The problem: Salary is a big motivator for employees, and plays a crucial role in retaining employees. Therefore, timely and accurate payroll processing is of paramount importance for an organization. This is one solid reason to streamline payroll processes from the beginning to avoid discrepancies and delays.
The solution: Identifying issues is the first step towards finding solutions. Regardless of the scale, organizations must create transparent policies, conduct regular audits, and address payroll problems as soon as they arise.
4. DATA MANAGEMENT:
The problem: Preparing a payroll is a complex task. It requires updated employee data, including their personal and tax information, days in attendance, salary structure etc. However, if not done correctly, it can result in misunderstandings and resentment on both ends.
The Solution: Providing payroll staff with proper training is the key to addressing this challenge. However, many small companies may not have a dedicated payroll staff. In such a scenario, it is best to outsource payroll services to virtual HR consultancy firms.
5. DATA PRIVACY:
The problem: The payroll system may contain the most sensitive employee information. Therefore, it needs to be protected at any cost. Small companies generally compromise with cyber hygiene, which results in cyberattacks and data leakage, making it further challenging to maintain employees’ trust.
The solution: The organization should follow strict cyber practices and integrate cybersecurity solutions to prevent malware from entering the IT ecosystem. If required, employees should be trained to follow cyber etiquette.
It is challenging to run all company operations single-handedly. Therefore, crucial tasks like managing a payroll should be assigned to virtual HR firms like Huminivex Consulting and Training. They help small businesses, corporates and industries with setting up policies & procedures, addressing current problems and transforming workforce.
