Why Payroll Is The Most Important Part Of HR?
Payroll is the process through which employees receive their paychecks and is obviously the most important part of an organization because everyone works for money. Most employees in any office are likely to leave if they do not get their salary in time. In some organizations, payroll is considered a part of the Human Resource Management department because they deal directly with the people being recruited and are also responsible for deciding the salary, bonus, and incentives of all employees. Payroll and the HR department are intricately linked and one is dependable on the other for the organization’s proper functioning.
Simply put, the HR professionals are the first to face basic questions from an interviewee like whether the pay is given on time, what kind of deductions are made from the salary, if the attendance is integrated into the pay package and in case of salary errors how fast can they be rectified. Thus, the onus of convincing a potential employee to take up the job depends on the HR department which definitely makes it an important part of the department. Job aspirants also enquire about the employee benefits being offered by the company but the bottom line remains that wellness packages do not make the organization credible but pay package paid in time do.
Payroll is also very much connected with not only paychecks but also hikes, deductions, bonus, benefits, firings and resignations all of which are considered part of the HR department. The information is confidential and both human resource and payroll management system deal with them in the same manner. What also holds true is that in case of payment delays the human resource professionals find themselves in an unwanted situation even though they are not directly responsible for it.
Manual errors leading to paycheck problems may sometimes kick the dust over the department. This leads many companies to depend on reliable payroll management system software rather than the human hand for dealing with the payroll. The software is usually easy to understand and implement. Accuracy is one of its strong points and can be adapted with ease. Most also carry a history of salary revision which is important for maintaining proper employee records. Every company can also feed the system statutory warnings relevant to the particular organization which is helpful for preparing the payroll. The programs also have the provision for flexible payouts like travel and overtime which the software calculates on its own and applies while preparing the pay heads.