Tips to Improve Payroll Process Efficiency

While the HR industry has developed slowly over the past few decades, it’s taken a giant leap recently. Technology has allowed us to enjoy software that not only manages our tasks, but ones that manage entire departments!

Payroll is no different. Many companies have implemented automated payroll software into their processes in order to streamline one of the most essential—yet time consuming—activities within a business.

So what are some of the payroll challenges you face? Do you identify with any of the following?

Payroll Challenges Faced by HR

Human Error

Where people have to manually insert data onto spreadsheets, or type numbers into a banking app; mistakes are bound to happen. Human error can cause a snowball effect of problems that require extensive damage control later.

What companies need is way to manage their payroll with as little error as possible, since this is a fairly sensitive area of the workplace.

Time Consuming

Since most HR tasks are performed manually, it takes a lot of time away from other important tasks. Hr departments were always meant to work with people. But they get little time to engage staff because they are constantly busy with time consuming tasks such as payroll and data capturing.

Business managers as well as HR managers want software that can automate their processes so that they can tend to their actual duties as employee engagement experts.


Paying for a full-time HR manager to run your payroll is costly. And although it’s a necessary component in most companies, it does take a chunk out of profits.

A once-off investment that can be used indefinitely is a much sounder option. Although the human touch of HR is still needed at companies, the nitty-gritty tasks that are costing you someone’s time & salary will be replaced by technology that does the job more efficiently.


Payroll tasks are highly repetitive, which again can cause mistakes to happen out of complacency or boredom. Your people should not be burdened with monotonous tasks when you’re actually employing them for their people skills.

Leave the boring data management to technology and remove that unnecessary burden from your HR managers.

Lack of Employee Development

HR in its rawest form has very little to do with engaging employees. It’s not supposed to be that way, but it is. Payroll has taken up too much time from your HR department, leaving them demotivated in engaging employees, and leaving your employees with low morale as a result.

Company managers must start focusing their HR team on employee engagement, or they will never hope to compete in today’s market.

Vulnerability of Employee Data

Because other people have access to employees’ personal information, there is always a security risk. When personal data gets used or leaked for the wrong reasons, it’s very difficult to track where the information slipped through.

If software existed that could keep your employees’ information safe, would you invest in it?

Tips to Improve the Efficiency of Your Payroll Process

What if there was only one tip you needed to overcome all of these challenges? Well, there is.

Implementing payroll software is an investment that pays for itself by ensuring the following:

Fewer Errors

HR software seeks to eliminate as much human error as possible by taking over these processes and automating them. Automated payroll runs on clever algorithms that calculate remuneration and pays the right amount at the exact scheduled time.

Time Saving

Because it’s an automated process, it’s virtually instant. Software that manages your payroll runs in the background, leaving your HR managers much more time to actually engage with employees on a personal level.

A Better Investment

HR software with payroll capabilities usually costs you a once off fee, which is a better investment than paying a monthly salary. It’s time we looked at HR software as a necessity—the same way we look at office equipment or a building alarm system.


Technology like this seeks to simplify our working processes a major way this is done is by handling all the mundane tasks such as data capturing and figures.

HR no longer needs to spend energy on small meticulous tasks that require concentration and focus. Instead, they can turn that focus to the people within the company and work to develop each one.

Increase in Employee Engagement

Payroll software opens up your HR department to do what they were meant to do—engage employees. This one change will transform your company in ways you never imagined.

Suddenly your employees will be happier. They will work harder. They will respect management and aspire to grow within the company—and invest in it.

Safe & Secure Payroll

When sophisticated software is managing your payroll, employee information is kept safe from human eyes. This is a much safer way to run your payroll because data theft is made much less likely.

If your company is affected by GDPR, then this is an especially important aspect of your payroll. Automating payroll with comprehensive HR software will secure employee data and make it far less likely for private information to leak out.


When we see technology being developed that takes over an entire department, we must remember that these types of changes are necessary for corporate survival. This is not something that will steal jobs away from your employees. Instead it will open up new avenues of employee engagement that will actually benefit your business.

Not only will your HR team have more time to dedicate to the staff themselves, but they will also enjoy their jobs more. Why? because they’ll be interacting with people, which is the main reason HR people go into this industry!

Although technology like this may scare us—because it does so much of what people used to do—it fulfils a job that most people wouldn’t want anyway.

So take your company to its next level of evolution. Automate your payroll and allow your HR team to do what’s really important.