Updated: May 27
With the growth of the gig economy and the rise of digital businesses, payroll has become even more digital than it was years ago. Yes, it’s still the same ol’ weekly payroll process, but now it’s more automated and convenient than ever before. And that’s a good thing!
The shift to digital has had a profound effect on the way businesses operate and the types of services they provide. That’s why it’s no surprise that almost 90% of businesses have updated their payroll software in the last two years. As with most digital transformations, the shift to software as a service has changed the way employees are paid.
The new ways companies now pay employees are faster, more accurate, and reliable. The old ways are inefficient and outdated. If your company isn’t already taking steps to update your payroll software, it’s time to get on board. Here’s why your payroll software needs an update now.
Higher Employee Retention
The most obvious reason why you should update your payroll software is because it will help you manage your payroll and retain your employees. The best way to do this is by automating processes and using software that can do the tedious work for you.
38% of today's workforce are millennials or younger. This number will jump to 50% sometime this decade. Is your payroll technology ready to attract these workers?
Employees who don't have a formal onboarding process become nervous about their new employer. Studies show that 25% of workers quit their first year. Don't lose good talent because of antiquated processes. One way to reduce this problem is by utilizing a modern Human Capital Management (HCM) system which combines HR, payroll, and time keeping in a single system. Improve your professional image and empower your workers by ditching paper and moving to web based solutions where workers can onboard themselves.
Better HR Reporting
There are many more reasons why you need to update your payroll software. More advanced payroll software will allow you to integrate HR software, making it much easier to manage your employee information.
HR software that’s integrated with your payroll software will allow you to create and share reports with employees and managers. This way, everyone can get a better understanding of how the business is doing and make informed decisions based on real data.
HR software that’s connected to your payroll software will also allow for the automatic tracking of vacation and sick days and offer benefits coverage options, such as health insurance.
Another benefit of upgrading your payroll software is that it will allow your company to process payroll faster. Faster payroll processing has been shown to increase employee retention rates. This means that every year, employers that automate their payroll are saving hundreds of millions of dollars by keeping fewer employees on the payroll.
Reduced Errors and Fraud
Third-party payroll software can also help reduce payroll errors and combat fraud. Both of these issues have risen to the forefront of employer concerns in recent years.
Payroll errors are always a concern. They not only waste time and resources, but they also have a negative impact on employee happiness and retention.
To reduce the risk of these errors, payroll software should be as accurate as possible when making deductions from employees’ paychecks. This is why payroll software should integrate with your accounting software, so that data can be transferred quickly and accurately.
The Bottom Line
The bottom line is that your outdated payroll software is impeding your company’s growth and ability to compete in the modern workplace. And the good news is that technology has changed the way payroll can be done. Today, payroll can be done almost entirely online, with only a small number of printed paychecks.
If your payroll software is more than a few years old, it’s likely time to make the switch. Your outdated payroll software is holding your company back and preventing it from achieving its full potential.
The good news is that Automatic Business Computing has changed the way payroll can be done. Now is the perfect time to invest in new, modern payroll and HR software. If you have any questions or want to request a demo give us a call at (877) 297-5460.