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5 Ways to Optimize Your Payroll Management


No matter how big or small your company is, managing payroll is tough. There are many components that you have to calculate such as basic salary, allowances, taxes, overtime wages, bonuses, and so on. However, that does not mean that your payroll management can’t be simplified and optimized.

By having a good employee payroll system, your company will have a good image. One of them is by using HRM software for payroll systems in the company. Of course, it will make your company name superior in the market.

Here are five simple tips that you can implement to optimize the payroll management in your company.


1. Choose the Best Pay Schedule

The salary calculation method in each company is different, some companies use daily salary, some use weekly, and others use monthly. Some of them even implement multiple wage calculation methods. For example, permanent employees get their monthly salary while outsourced employees get their daily or hourly salary.

Whatever payroll management method your company uses, you should pay all of your employees at the same time. Choose the best payroll schedule for your company. Whether it’s at the beginning or end of the month, make sure you and your HR staff have enough time to calculate the salary of each employee.

2. Improve Your HR Staff Ability Through Training

In order for your payroll procedures to run optimally, you need to ensure that your HR staff are competent to manage salaries. Low-skilled and unprofessional HR staff could cause inaccuracies in salary calculations, which then could harm your company.

Therefore, it is important for you to maximize the capabilities of your HR staff through various training programs. Companies with competency management systems can simply increase employee performance. This system can help employees improve their abilities and map them to jobs. One of the skills that employees must have is able to adapt to new technology that gives simple and current ways to handle salaries.

3. Leave Manual Payroll Procedures Behind

Apart from being prone to errors, manual payroll procedures also take too much time and effort. Not to mention that printed payslips are easy to lose or damage. Therefore, we recommend you start leaving them behind and switch to an automated payroll system.

Payroll software helps automate the calculation and payment of salaries, overtime wages, bonuses, and more. With this system, HR staff can also calculate taxes for both permanent and non-permanent employees.

Automated employee payroll systems provide high levels of accuracy and data security, so you won’t have to worry about errors in your salary calculations. Payroll reports can be made in just a few seconds and your employees will receive their payslips electronically.

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4. Calculate Salary Raises based on Performance

Most companies usually apply salary raises at least once a year. Salary raises often give business owners and HR staff a headache, because each employee receives a different pay raise.

To facilitate the salary adjustment in your company, you should first measure the achievements of each employee. To make it easier to monitor employee performance and calculate salary raises based on it, consider using an all-in-one HRM system.

Read the related article: Top 5 HRM Software in Indonesia

5. Allocate Budgets for Employees’ Bonuses

Every company certainly knows that they must allocate a budget to pay bonuses to employees. If this happens, HR staff might have a hard time before the payday comes because they didn’t plan ahead. To keep you away from such a situation, plan your budget for employees’ bonuses at least a month before the payday. This will make it easier for you to control your company’s expenses as well.


Payroll is one of the most important tasks that a company must complete. If you execute this exercise manually or with a simple spreadsheet, it will be rather complicated. Miscalculations are unlikely to occur if the five suggestions listed above are implemented in your organization.


In optimizing the company’s payroll system, you can use EVA HRIS Essentials from HashMicro. This system will help your HR team Easily automate administrative activities, such as calculating salary and taxes and keeping track of employee absences and attendance.

Another advantage is, that this system is made with a simple and practical user interface to provide ease of administration of enterprise HR, so the HR team can use this system easily. To experience the benefits of the software yourself, you can request a free demo here.

Interest in getting savvy tips for improving your business efficiency?

HashMicro is a software development and enterprise resource planning (ERP) company. Consequently, we often provide articles about ERP and other systems that all businesses need.

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