Can Shift Scheduling Software Speed Up Payroll Processes?
Published: 31/07/2022
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Slow payroll processes can cause significant harm to businesses. In this article, we aim to engage finance directors and business owners on how they can potentially expedite this through shift scheduling software. It will be particularly relevant to readers who are adopting a shift-working approach.
There is nothing more frustrating than putting in hours of work, delivering correct timesheets on time, and submitting expense claims with relevant receipts attached… and not being paid on time. Delays in processing the wages of hourly workers, as well as reimbursing their expenses, are direct results of a slow payroll. It creates frustration among the staff, kills their motivation, and can drive them to quit. To make matters worse, the slow payroll process isn’t immune to errors; it can still end up paying employees less than what they’ve earned or adding further strain to the business’s finances.
If this sounds like a chaotic situation you wouldn’t want to encounter, it’s time to explore preventative solutions. Moreover, if you have already faced unfortunate experiences due to sluggish payroll procedures, you are likely already in search of them. This article focuses on learning how to tackle and prevent payroll-induced nightmares by enhancing the process.
The payroll process is one of the key procedures every business must have in place. Moreover, it must operate smoothly and flawlessly, or the business risks facing numerous legal issues. From paying employees to calculating taxes, payroll involves many details that need to be considered, which often results in longer processing times and potential delays. However, taking the necessary time does not eliminate the possibility of errors… So, can your business truly afford a slow and still error-prone payroll?
The simple answer is no. Not only can inefficient payroll expose you to legal issues, but it may also become the source of your problems with the staff. In particular, it can damage employee retention, as no one likes waiting for their paycheck or discovering mistakes within it. A slower process also means you can’t scale effectively; to manage a heavier workload, you will likely need to hire additional staff. More employees on the payroll will place more strain on accounting and potentially prolong payroll processing times even further. In other words, this is one of the procedures that lies at the very foundation of the business: getting it wrong will impact numerous other areas and hinder your progress.
The best way to tackle the inefficiencies of an ineffective process is to implement automation solutions. There are numerous benefits to this. Firstly, tasks will no longer require manual handling, which is a significant advantage for the consistently busy accounting department. Secondly, it will minimise the likelihood of human error. Lastly, it will decrease the process time to mere seconds while providing new, in-depth insights for future optimisation.
The most effective businesses operate like well-oiled machines. This means they not only have efficient processes in place, but all departments are aligned as well. It is often seen as a challenge, mainly because customer-facing and back-office teams do not share many common procedures. This leads to them frequently managing different types of tasks, and as a result, they are rarely included in each other's workflows. However, this kind of departmental siloing results in significant data being lost without context, further leading to missed opportunities.
Software integrations enable modern companies to efficiently create processes and workflows that connect different departments and allow them to access one another’s data. For example, by linking a shift scheduling tool, a timesheet solution, and an accounting platform through integrations, you can significantly enhance payroll processing time. In simple terms, shift schedules will be generated based on the timesheet data, indicating how many hours the employee has left to work. The timesheet solution can also calculate any additional rates such as overtime and expenses. Instead of burdening the accounting team with reviewing this manually, it can be easily exported directly into the payroll software with just a click.
To further increase visibility between the parts of the company that do not typically collaborate, centralised document storage would be immensely beneficial. We can utilise the same software setup mentioned earlier. Everyone’s life would be significantly easier if there were a single platform containing information such as past schedules, submitted timesheets, expense claims, invoices, reports, and more.
It would be particularly beneficial for accountants who occasionally need to double-check a lot of documented facts. For example, if they suspect a mistake in the payroll, it will be easier for them to access the necessary files themselves rather than chase the person who may have them via email. Another advantage would be audits; these always run much smoother when everything is nicely organised in the same location.
The functionality of the aforementioned shift scheduling tool significantly aids in streamlining payroll processes. However, these are not the only valuable features that the solution provides to accounting and other non-customer-facing departments. While it is commonly perceived as a tool designed for shift workers and management, this does not imply that the entire company cannot benefit from it.
It may initially sound odd, but a scheduling tool can assist your business in staying compliant, especially when combined with other solutions such as holiday management software or timesheets. When working in tandem (or if all functions are integrated within the same tool), this ensures you remain on top of employee management-related compliance issues. For instance, the software won’t allocate hours to an employee who has exceeded their weekly or monthly working hour limits. Furthermore, it will consider factors such as minimum holiday entitlement.
Not only does it help you stay out of hot water with minimal effort, but it also protects you from making mistakes related to these issues. For instance, when last-minute time-off requests are managed via emails or calls, they can easily be lost or forgotten, skewing your data. When processed through a designated platform, they are recorded and assist you in addressing the potential inconvenience they may cause in advance.
Reporting, much like payroll, is another vital process that every business must have in place. It enables you to track your company’s progress, compare your results to previous periods, and identify the strengths and weaknesses of your strategy. From department-specific reports and individual worker performance assessments to comprehensive annual company reports, this is your way to access and analyse data.
The problem is that, similarly to payroll, it can be very time-consuming when done manually, especially as the volume of metrics and the number of required reports grow. Compiling data from different sources into one centralised document is a lengthy process when performed manually. Any typos that occur can entirely ruin the outcome of the analysis, leading to poor decision-making. Depending on the size and complexity of the report, it can take up to months to complete. However, when you’re using an integrated tech stack, all your data will be collected and presented in a visual analysis for you, including crucial data gathered by a scheduling tool, of course.
Business digitisation is a rapid process that is taking over the world. It cannot be stopped, and the longer you delay your business from embracing it, the more challenging it will be for you to compete. Digital transformation is evergreen as it constantly collects data upon which you can then act—your actions will produce a new type of data. In other words, there is no limit to optimisation, and that is why every business needs to commence its journey as soon as possible.
We live in an era of data overload, and businesses that do not utilise it are bound to fall behind. However, collecting data alone isn’t enough; you also need to segment, visualise, and analyse it for it to be useful. The problem is that it’s humanly impossible to do all this, especially when dealing with the volumes of information we are exposed to today. This is why we need automation.
Correct and relevant data can propel your business’s growth if utilised effectively. Grounding your business in the data collected through automated processes—whether it involves addressing a gap in a strategy or seizing a new opportunity—is what renders your company data-driven. Rather than speculating on your next steps, you have data to guide you in the right direction. There is no alternative to achieving this other than embracing digitisation and digital transformation.
There are several pillar processes that serve as the cornerstone of every business, one of which is payroll. However, despite its vital role, it is often very complex, prone to mistakes, and time-consuming. Both errors and delays can cost your company significantly, not just from a financial perspective but also in terms of lost trust, client dissatisfaction, and low employee retention. Nonetheless, there are ways to improve in all these areas.
Although shift scheduling software is a tool primarily utilised by client-facing departments, it is also immensely beneficial to back office staff. If you acquire a solution that integrates with other tools your business employs, it can significantly reduce the time typically spent on payroll processing. Digital transformation and a data-driven approach are essential for modern businesses, as they enable different departments to align through automated, streamlined workflows. Missing the opportunity to adopt these technologies now will give your competitors an advantage.
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