No longer do payroll functions mean tedious and painstaking calculations for the HR department, with tons of documentation. Companies can deploy technologies now to automate payroll processes and make them completely paperless.
Everything from planning shifts, to recording attendance, can be done electronically. It saves time, resources, and efforts, and helps companies reduce costs significantly. Not to mention, it is environmentally friendly as well.
Here are 7 top reasons why companies need to consider paperless payroll processes.
1. Convenient for Employees
Internet and smartphone penetration in India is spreading into tier-II and tier-III cities too. Blue-collar workers are getting used to online banking, purchases, and payments.
A paperless payroll process adds to their convenience. Employees can receive wages directly in their bank accounts. They can access their funds, salary slips, and ESI and EPF contributions online. This improves transparency too and helps build employee trust.
2. Safe Storage and Data Back-up
Manual processes carry the risk of data loss across multiple touchpoints. For companies, payroll data must be stored properly, and accurately to enable audits and compliance. Electronic copies of attendance records, receipts, invoices, and more can be organised properly and retrieved quickly when required.
A cloud-based payroll system further ensures scalability, which paper-based processes can’t. If companies expand or scale down their operations, the storage needs to change as well.
Paperless payroll processes provide this flexibility to employers. Cloud-based systems also ensure automatic back-ups on a pre-scheduled basis. This eliminates the risk of data loss in case of a cybersecurity breach.