3 Reasons To Make Payroll A Priority To Sort

Modern businesses encompass a wide range of functions in their daily operations. From generating new leads and sources of revenue from a dedicated sales team to relying on a highly skilled IT team that helps them to incorporate the latest technology into their business, the functions are specialized and diverse. 

However, one important business function that is often overlooked is that of the payroll department. Payroll ensures that staff are paid correctly and on time and their continued efficiency is incredibly important for the overall operations of any business. 

An effective payroll department can help to foster business expansion when a company seeks to move to international trading. In addition, the function can also ensure that a business remains secure when making payments, and can play a key role in motivating and retaining staff. 

These three key reasons will be expanded on in this article to demonstrate the importance and significance of this business function.

To drive expansion

Many businesses seek to expand their operations, as they recognize that this can be a key way to increase revenue streams and to ensure their long-term business viability. Today, the world of business takes place in a truly international marketplace, and it is wise to consider expanding into new foreign territories to generate new business. However, the payroll function needs to operate effectively in other countries and must comply with country-specific legislation. 

When expanding your business abroad, it is wise to consider outsourcing your payroll function to an external specialist provider such as activpayroll. Using a specialist payroll team will ensure that a global payment system is in operation which is efficient, reliable, and compliant. 

Many firms make this change when expanding their operations into overseas territories as it streamlines what can be an increasingly complex payroll situation. Put simply, using specialist payroll service providerscan be extremely beneficial when growing your business and entering foreign territories.

To increase data security

Large firms will employ hundreds of staff members, each of whom will be paid on a weekly or monthly basis. Today, these payments are made almost exclusively using electronic means (i.e., using bank transfers to deposit wages into staff bank accounts). 

The payroll function therefore needs to ensure that their payment systems use encryption and other forms of payroll security when transferring these funds so that the risk of acts of cybercrime occurring are minimized. 

Outdated payroll functions and those that do not use sufficient data protection measures are at a greater risk of data breaches and may face financial penalties if they are found to have substandard data security protocols.

To motivate and retain staff

As a brief final point, it should be recognized that payroll plays a vital role in motivating and retaining staff. Put simply, staff members come to work each day so that they can earn a meaningful income that can support themselves and any family members. 

Over time, frequent payroll errors can lead to staff looking elsewhere for employment, which can increase employee churn and recruitment costs.

Whilst parts of the job may provide motivation, it should be recognized that generating income will be the main reason for cultivating a career. If staff face regular problems or mistakes when receiving their wages, it will reduce their motivation and will lead to a negative company image.