BY Therese Pempeña Articles
The benefits of adopting a paperless payroll system are far from limited to environmental advantages and cutting back on costs. Streamlining your payroll system actually keeps your organization functioning at a more efficient level. It eliminates the need for more paperwork, allows you to update payroll data in real-time with less errors, and saves office space by storing electronic documents on hard drives. Looking to transition from manual payroll to an automated process? Here are five steps you can take to implement it in your office.
A Human Resources Information System or HRIS is a software or online solution that serves as a centralized repository of employee data. Depending on the features offered with your platform of choice, you can track attendance, hours worked, leave requests, and more. This platform also has the added convenience of remote access. Meaning you can update information, approve or deny requests any time, anywhere. Best of all, any change you make will be reflected at real- or near real-time.
Most payroll software providers include the option for an employee self-service portal. It gives your employees access to their personal information and is directly linked to the HRIS. If there are any disputes regarding individual pay, your employees won’t have to line up outside your office to have them corrected. It’s also a more secure method overall because employees will be required to sign in to their accounts using dedicated login names and passwords.
Labor laws here in the Philippines require employers to issue pay slips to workers regardless of their work status, job designation and rate of wage. Section 26 of RA No. 10361 states that the pay slip should contain the amount paid in cash as well as all deductions made. Making payslips available online gives employees the option to view them when they need to or print them out if necessary. And since everything is stored online, employees get a good overview of their pay history to find inconsistencies that need to be resolved.
According to a Wall Street Journal article, some companies still cling to the old fashioned way of issuing paychecks to employees just because it “works.” However, just because something works, doesn’t necessarily mean that it is the most effective way of doing things. The American Payroll Association says that running payroll via direct deposit and providing pay stubs online can save you about $4.35 or ₱232 per employee. Using paycards, which are similar to debit cards issued by banks, is a cost-effective way of pulling this off.
An article on Mashable Asia says that the average office worker uses up 10,000 sheets of paper in a single year. Imagine by how much you can reduce that if you don’t print out payroll reports, make multiple copies and send them to executives. With a comprehensive software, you can readily look up reports online for the data you need. You also conserve office space in the process and cut back on storage fees to keep all documents safe.
A completely paperless office is a noble idea all companies should aspire to. Looking for alternative ways of how to do payroll is a good place to start this simply because of all the benefits you stand to gain.