How an Organization’s Productivity is Increased through Payroll Software?
While the obvious and the most visible advantage of using payroll software for an organization is ease of calculations, thereby saving precious man hours, there’s much more to it. In fact, this software will not only increase the productivity and efficiency of the HR department, but it will also help ascertain the efficiency of the people in the company as a whole and make the employees of the organization accountable, thereby increasing the productivity.
Let’s see how:
The software facilitates easy calculation. In fact, the need for human intervention to calculate and interpolate the data is almost zero and thus it reduces human errors and saves time in calculating the staff salary.
It helps tabulate such as annual leave records, leave planning across the department for better staff management and so on.
It also facilitates the accounts department particularly in tax calculations. These packages facilitate statutory deductions, TDS deductions, Form 16 and more. This will also help calculate tax liability of the individual in advance. Thus, it reduces the manual labor of the accounting staff and thereby increases their productivity.
The software has more in store. It is not just assimilation of data rather it translates the employee data into various reports giving you an accurate estimate of efficiency, cost of the employee, and also return per employee. For example: The sales generated by a salesman can be related to his cost to the company to find out his contribution. The software will also help tabulate the most rewarding employee etc.
In addition to aiding crucial decisions through valued MIS reports, the software can also be a critical tool in decision making- for example cost comparison of outsourcing a job vis-à-vis in-house staff and so forth.
Most importantly, the software will help in calculating per employee, per department cost in budget and actual and give a comparative study of budget v/s actuals, both as monthly report and as year to date comparison.
Moreover, the payroll software can help a great deal whenever the organization is planning for expansion to accurately estimate the manpower costs.