HR & Payroll – An Inevitable Bond
It is simply astounding to see the intersection amid different departments and professions in a business. Irrespective of the industry or vertical a business operates into, employees in various departments ought to work in co-ordination and this applies to payroll and HR as well.
For instance, taxation work is taken care of by lawyers and accountants, whereas human resource lawyers and experts look after workforce related chores. This factor bridges the gap between both these key departments.
Payroll is undergoing paradigm shift
Often, HR fails to get the recognition it deserves. Nevertheless, there is room for human resource personnel to label payroll processing as a key administrative and transactional process. Thus, having sound knowledge and expertise in handling salary processing becomes quintessential as well as beneficial for human resource folks.
Traditional practices include toiling yourself with manual calculations and stringent deadlines. This usually consumes lot of time and efforts affecting productivity and efficiency of the entire HR department.
However, with the inception of automation technology and tools, a whopping number of businesses are opting for automated HRMS and payroll software for error-free and timely results. Be it a start-up or any established organisation, executing this quintessential process manually is sure to take a huge toll on its HR department.
Another important factor that is driving businesses towards automated HRMS payroll software is the downpour of legal and statutory compliances that companies have to face on a frequent basis.
Besides statutory and legal compliance, salary processing is also turning out to be more tech-based and strategic game these days. As salary is one of the biggest expenses and employees on the other hand tend to get irritated if they are not paid on time or are paid inappropriately, businesses are realising the importance of this important business process.
HR & Payroll go hand-in-hand
Human resource professionals need to work in tandem with payroll department in various areas that include but are not limited to leave encashment, attendance management, holidays, vacations, overpayments, overtime, bonus payments, base pay, tax benefits/deductions, absence, equity, gratuity, etc.
Simply put, payroll department frequently communicates with the HR department to provide human resource people with a comprehensive picture of employee data. In some companies, a single department may handle both salary processing as well as employee management processes with the help of a robust employee management system.
Despite payroll being a standalone or finance department, its bond with HR is inevitable that needs strong collaboration from both the departments.
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