Although the payroll function may be relatively small in terms of number of staff in many companies, there are many advantages in optimising your payroll administration. Reviewing your procedures and work tasks can make the payroll department more efficient – leaving more time for value-creating and strategic tasks in payroll and HR. 

At some companies, the payroll department is a single person. Only the payroll administrator has access to the payroll system. The same tasks are performed month after month, year after year, without anyone asking why they are carried out in a particular. Because after all, the main thing is that the salaries are paid on time, right? Imagine that person becoming sick or abruptly leaves. How would a replacement know which procedures your particular company follows, and what happens then to your employees’ salaries?

Map your work processes

One initial step towards a more streamlined payroll management is to map your current pay and HR processes. It may seem like a time-consuming job to go through each work task in the process, as there is wide array of other important tasks that needs to be taken care of. However, setting aside time to critically study all of the work tasks in the payroll department will clearly show which tasks can be streamlined and ultimately save you a lot of time. Furthermore, you’ll be less vulnerable in the event of sick leave or if the payroll administrator leaves.

The mapping process:

• Go through your current procedures, processes and documentation
• Establish which systems are located in the payroll department and out in the organisation
• Identify the challenges in the payroll process
• Identify the opportunities to improve the payroll process
• Identify your employees’ expertise

Streamlining data flows

One major time thief in the payroll department is collecting and subsequently managing data. If time reports, travel receipts and expenses are reported from different quarters in different formats, that are not structured in such a way that they can be directly scanned into the payroll system, a lot of manual work is required on from the administrator. Reviewing and improving how data is reported to the payroll department and how it is then entered into the payroll system can save you a lot of time – time that could be spent on more important tasks.

Communicate clear procedures

Make sure that all employees know when the time reporting has to be carried out and that it is carried out in the same way. Being clear about the payroll procedures encourages employees to be more independent and report on time, and it avoids the payroll administrator having to answer the same questions over and over.

Maintain skills that ensure quality work

There are a number of external factors in the field of payroll and HR that are ever-changing, so it is important to keep track of laws and regulations to ensure that work is carried out correctly. Make sure that you prioritise skills development for staff who manage salaries at your company.

Review your payroll system

If your payroll system is old, you should also consider whether it is time to replace it. Although a lot can be optimised through the correct, full use of the system’s capacity, in some cases the most practical action is to change to a new and more modern solution that is better equipped to support the company’s integration with other systems.

Does your payroll management need an overhaul?

Managing employees’ salaries occupies a lot of time and payroll administration is a complicated area. Most companies can reap big efficiency gains and improve the quality of their payroll process if the payroll process is supported with effective procedures and systems. If you need help, Azets can analyse your entire payroll process. This includes mapping the current process, establishing the challenges your are faced with – and then suggesting specific improvements.

With payroll consultancy teams across Norway, Sweden, Denmark and Finland, we offer the entire Nordic market through one point of contact. You will save hours of administrative work and get the insight you need to optimize your organization:

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