As a result of the rapid change in how we operate and the resulting new opportunities and unforeseen difficulties, many business executives are feeling overburdened by the magnitude of the issues involved. Because of the global labor shortage and the ongoing changes in employment laws, it is becoming more difficult to retain personnel. HR leaders must therefore find fresh approaches to ensure that their company stays a successful, competitive employer.
More than ever, HR teams need assistance in developing a strong human resources department that engages staff while generating revenue. One support group for HR is the payroll group. HR and payroll may initially appear to be very dissimilar concepts. At every point of the employee lifecycle, there is power in the intersection of these two corporate roles.
The opportunity for HR and Payroll to collaborate more closely to build a high-performing function exists with an emphasis on integrated global payroll and HR systems—and the technology that supports integration. HR is currently in a better position than ever to handle change because of cloud-based technologies that enable payroll data to inform and support real-time choices on compensation structure, benefit alternatives, and labor requirements.
Payroll Managers as Your Best Partner
HR can easily work through their roles when payroll responsibilities are handled by the payroll services providers. HR management includes a lot of responsibilities, such as—recruitment, HR interviews, attendance management, formulating the KRA, and many more. The rest comes under the payroll management responsibilities, which include a lot more responsibilities. Be it a big or small organization you have a lot many things to do in the organization related to the payroll management which can be better handled by the payroll service providers.
So, let’s take a look at the key roles of payroll service providers in India and how we can help you out.
1. A competitive pay structure built on payroll data
HR teams cannot conduct a competitive pay study or guarantee their pay rates are equitable without accurate pay data. However, by working together with Payroll Management to obtain insight into pay data, our HR is better able to attract top candidates, retain top talent, and show the organization’s commitment to pay equity.
Based on data analysis of the organization’s pay rates, support from payroll can assist in guiding and developing a competitive pay structure. Payroll data analysis insights can also assist HR in determining whether the company is effectively compensating employees for their efforts or whether there are any gaps that need to be filled as part of a larger personnel strategy.
An efficient collaboration between HR and Payroll is crucial for putting money in employees’ pockets. Any step in the data entry and transfer process might cost money if done incorrectly. An integrated solution reduces the likelihood of error while also streamlining procedures for the Payroll and HR teams. They can get trustworthy personnel data from a single, centralized source since they collaborate as partners and frequently exchange employee records.
2. Manage Costs While Offering Innovative Benefits
Furthermore, an integrated strategy for HR managed services and payroll systems enables decision-makers to compare compensation data to other employee-related costs, such as benefit packages. One of the most effective strategies a business can use to recruit and keep talent is to offer innovative benefits, and HR directors today are aware that they need to make constant adjustments to their benefit packages in order to keep talent.
According to studies from HR Magazine, benefits “often account for between 12% and 18% of a company’s payroll and have weathered the test of time, suggesting they are more than a hygiene element.” “Newer firms do consider them as strategic, even though historically some organizations have not given much thought to what they offer.”
However, HR cannot develop creative benefit programs on its own. Data and strategic planning between HR and Payroll are necessary for planning and funding these benefits. For instance, many businesses lure young graduates to join their business by providing benefits for repaying student loans. HR runs the risk of underestimating the cost and maybe setting plans that they can’t keep if they don’t work with Payroll to understand the costs related to this perk.
Our payroll teams can present prospective prices for various benefit offerings as part of HR’s planning cycle so that HR can choose the best solutions based on employee interest and the budget at hand. Similar to this, HR and Payroll can collaborate to make sure benefit plans stay within budget and deductions are calculated correctly to prevent expensive penalties. Payroll can aid in forecasting future expenditures and assist HR in making changes to what the company offers if benefit plans start to become too expensive.
3. Meet Global Employment Regulations and Requirements
HR can enhance performance in terms of adhering to international employment regulations by collaborating with Payroll to stay updated on current issues. In addition to HR issues, complex labor regulations are sometimes the subject of employee litigation. HR executives can keep track of legislative revisions and guarantee compliance with the assistance of international payroll professionals.
Understanding compliance with regard to compensation, especially final payment after employment ends, is crucial for HR professionals working with global CEOs to develop personnel strategies. A solid working relationship between HR and Payroll opens up possibilities for process modifications that enable accurate, efficient data transmission when employment terminates. It’s crucial that the company abides by the rules and makes sure the employee is paid correctly and on time at that point, possibly more than at any other. Once again, integrated, single-source technology considerably reduces the possibility of expensive errors, which is crucial when employment terminates.
HR professionals have a fantastic opportunity to work with Payroll Management to interpret the data that is available, then use that data to make sure the company is aware of what is needed for a competitive and equitable compensation structure, cutting-edge benefit options, and compliance with employment regulations. HR and Payroll can become strategic partners in assisting their organization’s success in attracting and retaining the best personnel if they look for methods to collaborate in order to favorably impact the employee experience.
Also read: International Payroll Outsourcing: A Guide for Multinationals
[…] Also read: What Makes Payroll Management Your Best HR Partner? […]