A recent American Payroll Association/Kronos poll served up some shocking information. The “Evolution of Payroll Technology Trendline Survey” revealed that nearly 29% of payroll professionals use a payroll system 10 or more years old. That means these systems were put in place around the same time the Apple iPhone was introduced…before the modern app even went mainstream!
The survey, which polled nearly 1,000 payroll professionals from industries of all types and sizes, concluded that a good portion of these companies are still preparing payroll manually or using ancient software…which could have a negative impact on their bottom line.
For starters, outdated payroll systems make it difficult to accurately track Key Performance Indicators (KPIs) for the company. In fact, according to the survey almost half (49%) of respondents admitted they didn’t regularly track and report on KPIs at all! Could not having modern payroll technology be a factor in this failure to keep up with these metrics? How can a company compete in this current marketplace without a good baseline on how they are performing?
Then we move on to employee satisfaction with their payroll department. As you can probably imagine, an unhappy worker–one who gets his or her checks late or wrong–can lead to decreased productivity. In fact…approximately one in four employees will look for a new job after just the first payroll mistake!
Old (or non-existent) software and an inability to keep up with the latest in payroll technology–including paycards and apps–can result in screw-ups and delays in worker payment. If a company can’t even pay their employees in an accurate and timely manner, what does that tell the world about their ability to serve the public?
Finally, there’s the issue of compliance. For survey respondents with payroll systems more than 5 years old, 69% “cut corners” in a manner that could jeopardize compliance. Having an updated system with the latest in online payroll technology could have helped these companies stay safe and stay compliant.
Fortunately, the survey also indicated that many payroll and HR professionals recognize the vital importance of cutting-edge payroll technology. When asked to provide their payroll upgrade “wishlist,” 87% wanted on-demand reporting and analytics and 81% desired integration with time and labor management to increase the quality of data.
An all-in-one inclusive HR platform like Fingercheck360 can provide employers with the simple integrated digital tools to manage payroll, time-tracking, onboarding, and so much more. Upgrade your company’s payroll software to the top-of-the-line…and increase accuracy, security, employee satisfaction, and compliance in the process!