No matter how big or small your company is, managing payroll is tough. There are many components that must be calculated 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.
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 paid monthly while outsourced employees get paid daily or hourly.
Whatever payroll 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. Also, allow them to adapt to the latest technology that provides simple and modern ways to manage salaries.
3. Leave Manual Payroll Procedures Behind
Apart from being prone to errors, manual payroll procedures are also takes too much time and effort. Not to mention that printed payslips get easily lost and damaged. Therefore, we recommend you to 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.
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. However, it is not uncommon for the budget allocation to be carried out without proper planning, giving HR staff trouble before the payday falls.
To keep you away from such 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.
With payroll software, employees’ bonuses can be calculated automatically, so you won’t have to bother calculating them manually using a lot of printed documents or spreadsheets.