Recording payroll information has changed over time from being manual and paper-based to now being available fully online. Tools such as Microsoft Excel as well as payroll software solutions requiring backups and in-office servers for access have been utilised for this purpose, but are becoming outdated.
For truly flexible accessibility, a cloud-based human capital management (HCM) solution catering for payroll, leave and human resource functionality should be leveraged.
Core functions of a good human capital management system include:
- Statutory and customised reporting: Accurate data reflected in reporting can assist the business with strategic decision-making and analysis of certain trends. Customised reporting allows individuals within a business to set up and generate reports that the business requires.
- Employee Self-Service (ESS): Such portals allow employees to view their payslips, manage their leave, and capture expense claims. This functionality can help a business by reducing the related administrative tasks that an HR and payroll department would usually fulfil.
- Integrations and interfacing: Payroll is not payroll on its own; it is fuelled by integrations with other systems and functionalities which require restful Application Programming Interface (API). Such third-party systems could relate to clock-in systems where hours and shifts for staff need to be pulled through to allow for salary determinations. Accounting systems also need payroll information to populate company budgets and financial statements, which without technology is a manual journalling and reporting process.
Data protection and security is of the utmost importance when it comes to choosing an HCM system. Considerations such as ISO 27001 certification and log in via single sign-on should be at the top of the checklist.
A comprehensive HCM system aids many functions of the business by recording data and providing information that can be used for aspects such as training, skills and equity, labour law, and performance management. Make the change sooner rather than later.
