How to optimise payroll process

How to Optimise your Payroll Process

One of the most important processes in any business, Payroll is all about ensuring that your staff are repeatedly paid correctly and on time.

Sounds simple enough but we all know how easy it can be for mistakes to be made. Any disruption to employees has a major impact on employee morale and can create trust issues. Therefore making sure your payroll process is as accurate as possible is vital. 

Looking to optimise the manual steps to your payroll is the best way to create the most efficient and accurate service. Fortunately for you, we can provide a free payroll template to start you on your optimisation journey. 

Before you get going you need to consider the following to ensure success. Here are our top tips on how to optimise your payroll process. 

Know How to Note Infrequent Changes to Payroll. 

Whether it’s a pay rise, changes to working hours or holidays, these changes tend to only happen once a year. It’s easy for line managers to forget to notify the HR department. Ensure it is really simple for them to do this automatically. What do you have in place that will update your systems for you? Can you integrate these systems?

Temporary Changes.

Overtime, bonuses, leave – these can change quickly and are often temporary. Therefore it’s a prime area where mistakes are made. Make sure you look at using an automated system that allows you to make changes really quickly and easily to accommodate these fluctuations in your payroll. Often these are tracked using spreadsheets. Different spreadsheets can get sent to different departments and information inputted incorrectly or missed altogether. Look at who sends what and identify where you could change this step to ensure a smoother process.

Want to learn more about Process Mapping? Take a look at our user guide here

Who Processes and Approves Payroll?

First of all you are probably considering a system that will make tax calculations for you as this is an obvious area to optimise and reduce mistakes. Also look into how you approve your payroll? Who is responsible for this and how often do they need to give approval? Review what is necessary and ensure that the system you select can automatically notify approvers and log their responses.

Non-Employee Payments.

Take a look at the other systems you need to interact with, whether that be third party portals and tax systems. You want to choose a system that can upload that data for you. It’s a great way to save time and ensure that no mistakes are made. 

It can seem overwhelming to start the process of optimising your payroll system. However, taking it step by step and including the people in your team who do this everyday will help you to understand where you need to make changes. We  recommend that you start by mapping out your payroll process. You can use this template to get started.

 Skore is the Process Improvement software platform designed to be used and understood by everyone in your organisation. Get in touch today to find out more.

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