Editor’s Note: ‘3 Reasons Why Singapore SMEs Need to Automate Payroll’ is a guest article written by Sriram Iyer, Founder & CEO, hrtech.sg
We are well into the digital-first culture and enjoy access to knowledge of all kinds, at our fingertips. This has put the spotlight on the necessity for all businesses to embrace technology not just to survive, but thrive. Providing a consumer-grade experience to their employees has now become a game-changer.
Currently, there is an influx of new HR Technology players who are democratizing the marketplace. This has made such solutions more accessible for SMEs.
While large corporations have accelerated the adoption of technology in the hybrid workplace, SMEs are reluctant to move to a digital-first model due to “high cost and low returns”, albeit a myth.
In fact, most SMEs even overlook a basic tool that can provide them with a competitive advantage in the hyper-competitive talent environment: Payroll Automation.
Payroll processing is an important, albeit cumbersome, and time-consuming process for all HR Teams. An automated payroll tool not only reduces the burden on HR teams; it also helps streamline administration, organize labor costs, minimize risks, and improve compliance. Notwithstanding the benefits of an automated payroll system, most SMEs ignore this cost-effective tool that will provide them a competitive advantage.
Here are 3 reasons why SMEs need to automate their payroll function.
1. Shift HR team’s focus from “transaction” to “value-added” strategic work
Conservative estimates reveal, HR teams sometimes spend about 50% of their time dealing with employee-related paperwork.
Automating the payroll function can help HR teams save considerable time; all of which they can better utilise for employee engagement, and other value-added activities such as internal programs to drive better business operations efficiency.
With headcount budgets being slashed for HR departments across enterprises, payroll automation can provide HR teams the bandwidth to focus on critical aspects that can help them to be seen as a truly “Strategic Business Partner”.
More importantly, payroll automation eliminates human errors and provides insights that can help in better forecasting and cash flow management.
2. Empowers employees; delivers a consumer-grade experience
With “work from anywhere, anytime” becoming the norm, employees are increasingly feeling the difference in “experience” between work and personal applications. Employees now expect organisations to implement workforce applications that yield a consumer-grade experience.
Payroll automation enables “employee self-service” options, that empower employees to readily view payroll-related aspects and even download their payslips, on the go. Additionally, they are able to update personal information in real-time which substantially speeds up the payroll process and saves time.
3. Helps to stay compliant
It is a well-known fact that employment regulations and related payroll aspects change far too frequently for any HR professional to keep track of. Cloud-based Saas Payroll Solution Providers stay abreast with these changes and incorporate them into their solutions. This doesn’t just eliminate the hassle of manual effort by the HR teams; it also removes the much-dreaded compliance-related errors and enables them to be aligned to the latest government regulations.
It is evident that Automation and Digitisation are here to stay. Hence, Enterprise HR teams of all sizes must leverage technology to create a best-in-class experience for a multi-generational workforce with differential needs at the workplace. So, hop onto the HR technology bandwagon and make it the constant in change!
Sriram Iyer is the Founder & CEO of hrtech.sg, a Singapore-based HRTech focused Market Development and Analyst firm. The company helps Singapore enterprises in identifying the right-fit, best-in-class HRTech solutions to solve their business challenges. In fact, hrtech.sg’s marketplace is now the largest marketplace for #HRTech solution providers in Singapore. It has the presence of over 120 curated cutting-edge product providers. Based in Singapore since January 2012, Sriram has strong exposure to the APAC region; this comes with his in-depth knowledge of the cultural and immigration-related nuances of the region. Prior to being an entrepreneur, he also played leadership roles with NCS (Singtel Group Enterprise) and Nasdaq-listed Cognizant Technology Solutions in Singapore, running large-scale talent initiatives across regions.