It’s your job to configure your system to do it”. ![]() You need to be able to hand that over and to say, “I don’t want to talk about your configuration. The idea is to create a set of rules that are written in plain English and describe how the system will pay people in all sorts of different scenarios. That’s why we’ve founded a company called Payroll Standard that aims to ensure that these systems are configured based upon a source of truth, and from your side, not the vendor. The problem is that no matter what you say, they’re going to come up with a response that’s based on what their system can do, not necessarily exactly what you asked for. Efficiency in SystemsĪs part of a vendor’s implementation of a new system they’ll typically ask a bunch of questions about what you want, and then interpret how their technology needs to implement that requirement. The last thing that you want is to have a pay run where you have no idea what processes and steps were actually executed. There will be less chance of errors and inconsistencies as long as there is thorough documentation. Manual interventions are bad since they invite mistakes and may not be executed the same way each pay run. In some cases, however, they exist to make up for gaps in the base functionality of the Time & Attendance or Payroll systems. Manual interventions are normally needed for edge cases. That way, if something goes wrong and delays the process, they’re still able to finish on time.Īnother question to ask is, “are our manual interventions documented?” The best CFOs and Payroll teams ensure that they’ve a buffer in that window and that they’re regularly finishing with at least 25% of their time to spare. It’s only after all that’s been done, they can push a button and send the payment instructions to the bank. ![]() They can also cross-reference against last week, fortnight or last month to make sure that the figures seem reasonable. After Payroll teams spend half a day getting everyone to close their timesheets, they then must clean up the data.įor example, if it says that someone has worked a 50-hour shift, it’s apparent that they forgot to clock out. ![]() Organisations generally have a small window of time to run the pay. Validation of processes is important because this is the stage at which you double-check to make sure that your documentation is a true reflection of what you’re doing.Īsk yourself, “How often does Payroll execute a pay run? How often does our pay run require manual intervention? And does our Payroll window include a buffer?” The danger is that if a Payroll employee leaves, you either won’t be able to easily access that documentation or worse, you won’t even know what the correct process was! They’ll most likely be lying at the bottom of a drawer somewhere or hidden away in desktop files, and that’s if the processes were ever documented in the first place. Process documentation is rarely proactively on display. When was the last time you validated that your documented processes actually align with what your employees are doing? That’s why instead of trying to make it more cost-efficient, consider the general efficiency of processes and procedures. The problem with talking about Payroll efficiency is that Payroll is generally a small department (but large cost) relative to the entire company and therefore you may think it is a restrictive area for efficiency improvements.
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