What is Payroll?
Payroll is basically the money paid by the employer to their employees for their work. It can be in terms of salaries, benefits, commissions, etc. It plays an instrumental role in the company’s growth and culture.
From an accounting perspective, payroll is immensely important because it is one of the biggest expenses for any company. Moreover, payroll also has a tax component that is subject to laws and regulations. Compliance is paramount when it comes to payroll.
If you look at Payroll from a human resources viewpoint, employees are immensely sensitive to payroll errors and irregularities. In a survey conducted, it was found that of 49% of respondents would consider finding a new job after 2-3 payroll errors. Losing an employee because of a preventable mistake is something no one wants. But this happens more often than you would think. Which is why, outsourcing payroll is one of the best ways to reduce errors, ensure compliance and have a streamlined payroll process with minimal involvement.
Why is Payroll Important?
Proper payroll and compliance in HR are just as important as salt in food. If the employee does not receive a salary on time, or if there are errors in the payroll, the employee might consider switching jobs. Moreover, paying salaries is one part of the whole payroll process. Leaves, expenses, compliance, etc. are all under the purview of payroll. Any lapses in either one of those responsibilities carriers a wrong message to the employee.
This might result in an increase in attrition, which will increase the recruitment costs and training costs for the company, not to mention the productivity lost due to the employee leaving.
Payroll and compliance at Authentic Staffing Agency
Most MSMEs do not hire a specific person to take care of the payroll. This job is often assigned to an HR executive or someone in the Accounts department. Since these employees do not have the technical knowledge of compliance and payroll, there is a huge chance of errors which exposes the company to a lot of risks. Moreover, not having a dedicated employee for managing payroll, even in big companies, results in a lack of focus on these instrumental tasks, which not only have legal repercussions but are also often updated.
For this very reason, outsourcing Payroll to an expert is the best solution. It saves the company from a lot of risk and headache, and at the same time, helps ensure a streamlined Payroll process which directly impacts the internal productivity. Moreover, the freed-up resources can be further utilized for investment in in-house technology.
Fenil Shah, the CEO of Authentic Staffing Agency started payroll processing and outsourcing with a vision to help companies reduce their risk and stress that often accompanies these activities. He believes that the primary focus of the company should be on revenue generation and providing value to the stakeholders.
Easing Payroll and Compliance – The Authentic Way
Authentic Staffing Agency has consulted numerous process automation experts to develop a custom solution for payroll management. AARAMBH – Our payroll management software has been developed using Artificial Intelligence and has over 100 data points that help measure the payroll process in real-time.
Moreover, the software has all but eliminated the manual workload that goes into payroll processing resulting in faster processing with zero errors. The software also increases the transparency of the payroll process between all stakeholders making payroll a smooth experience.
In conclusion, payroll processing process is considered expensive and has numerous points of failure. Moreover, the repercussions of those failures result in huge ramifications in terms of penalties, legal issues, and time. AARAMBH is our answer to this complex and utmost important process. The software is ever-evolving and aims to reduce errors and provide transparency to a critical process for any organization.