Do’s and don’ts for a successful payroll management

Payroll management

Payroll management is another of those essential tasks that businesses must do monthly. Some firms even have teams dedicated just to employee pay management. This is because there must be legal compliances in instances like the UAE. However, this does not imply that all businesses follow the procedure correctly.

In this article, we will explain to you the most important do’s and don’ts of wage administration. Payroll management is a complicated procedure that, if not handled properly, may result in significant issues. As a result, addressing specific features will help to enhance process management. Below, we will go through the following topics in further depth:


  1. What is payroll management?
  2. Does payroll management play an essential role in today’s organizations?
  3. Why implementing a payroll management system in your company will make a difference?
  4. Which features should you make sure you have in your payroll software?
  5. Which things should you do when managing payroll?
  6. What should you not do when managing payroll?
  7. Make payroll management work for your company with Connect HR’s solutions


1. What is payroll management?


Some actions are part of the organizational routine of a corporation. Examples include strategic challenges, opportunity retention, client loyalty, and personnel administration. That is why payroll management is one of these essential business procedures.

Payroll management is the control of the financial records used by the firm to remunerate its workers. It also covers any incentives and deductions that are mandated by law. Although some businesses handle this procedure biweekly or weekly, it is commonly done monthly.

It is now critical to pay employees correctly and on time to minimize underperformance and legal issues. The legal foundations are crucial in this management since an incorrect estimate might have a negative impact on the organization. Government authorities have shut down many businesses due to lousy payroll administration.

As a result, properly preparing a company’s payroll is a chore that takes time and effort. In addition to the efforts of the company’s human resources staff, companies with significant amounts of data need technology and efficient solutions. As a result, payroll administration is critical in businesses.


2. Does payroll management play an essential role in today’s organizations?

Payroll, as previously said, is among the most critical jobs for company owners. A well-organized payroll administration structure benefits employers. This is since they get regular and accurate payments and more time to concentrate on building their firm. Directly, it has a beneficial effect on the business.

There were many issues with payment processing when it was a manual process because of human mistakes. Furthermore, reconciling various facts regarding each employee’s salary was quite tricky. Wages, loans, attendance, compliance, leaves, and other items were difficult to achieve.

Thanks to digital technologies, the payroll process has grown considerably more robust. Due to payroll software, certain operations or duties that were previously difficult to complete are now made more straightforward. Managers and HR teams have paid greater attention to this crucial management task.

Many companies’ productivity and effectiveness have improved as a result of this. According to a survey done by Connect HR, more than 70% of businesses with proper payroll administration make more money. All of this is attributable to the appropriate pay administration for the organization’s workers’ hard work.


2.1 How does payroll management affect your company’s workforce?

Your staff will benefit from the payroll management process as it provides structure and regularity. It also provides them with a specific grievance resolution channel. A robust PMS can assist a company in the following areas:


  • Improvement in employee morale: If your workers believe their pay isn not steady, they may start looking for work elsewhere. A payroll management system will take care of any last-minute difficulties or human mistakes, ensuring that your workers’ morale remains high.
  • Flexibility for entrepreneurs: If you are a new company founder, you will have to wear many hats initially. One of them is in charge of the payroll. Rather than doing it by hand and risking human mistakes, you can now utilize proven management software to manage your company’s finances.
  • Reduction in tax bill: If you do not keep track of your workers’ records correctly, you may pay penalties. It is essential that taxes be withheld from the pay and that all of this is accurately documented. In this regard, payroll software may assist you in reducing the likelihood of incurring legal penalties.



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3. Why will implementing a payroll management system in your company make a difference?

Every month, businesses prepare payslips, which take a lot of time and effort. Is it possible to make it more efficient? Yes, if you use payroll software. In a word, the goal of this program is to assist firms in calculating employee salaries. Furthermore, these systems handle anything that directly or indirectly impacts employee remuneration.

Payroll management is influenced by factors like attendance, deductions, and more. As a result, payroll systems provide you with a platform on which you may store all of the data required for payroll administration. However, the most significant benefit that these systems may provide is their cloud function.

The HR staff has more freedom since they can handle payroll anywhere and on any device. They provide automated management, allowing you to compute the complete workforce’s payroll with a single click. But what impact does this have on the firm as a whole?

The mindset in the workplace has a significant impact. If an employee is having a poor day, his production will suffer. As a result, when pay issues arise, the whole organization’s performance becomes unstable. As a result, it’s critical to have payroll administration software that provides accurate payroll management.


4. Which features should you ensure you have in your payroll software?

It is critical to know which payroll management software to use for your organization while making this decision. It is important to know what functionalities are available from the suppliers that may supply it. But, most importantly, it is critical to determine if these tasks are following the HR team’s requirements.

These are the essential elements that we consider the payroll software you use should have. This will enable you to significantly influence your human resources department and the firm as a whole. The following are among essential characteristics:


  • Payroll calculation and generation: This has been an essential aspect of your program. You will not be able to handle your payroll without it.
  • Bank transfers: It is essential to have a direct payment to workers after completing payroll calculations. You are simplifying the department’s procedures, but you are also ensuring that the workers get their pay on time.
  • WPS: In the UAE, the WPS is significant in payroll. It is a government approach for ensuring that workers are paid correctly. As a result, it is just a complex procedure. As a result, WPS payroll solutions must be included to assist with this regulatory procedure.
  • Tax management: While paying taxes is necessary, and it may be challenging for specific individuals. What better way to simplify your life than to handle tax payments straight from your payroll software?
  • Remote access: Having remote access to payroll software will be critical in 2022. The HR staff will be able to handle payroll from anywhere, but workers will also be able to manage their requests. In today’s corporate world, this is a critical aspect.


5. Which things should you do when managing payroll?

Payroll is probably among the most critical, if not the most essential, HR processes in your company. In addition to being one of the business’s most extraordinary costs. That is why payroll management is critical for everyone in the HR department. It may mean the difference between a company’s success and failure.

Compared to the previous decade, these procedures have gotten a little more “complex.” Although payroll software handles, automates, and simplifies these operations, the process is far more involved. What exactly does this imply? As time passes, additional elements impact this management, making it more difficult.

This is enough for most excellent company owners to want to do it right the first time. On the other hand, These additional elements may complicate payroll administration for various reasons. Do not be tricked: it may be challenging for specific HR teams since it is such a particular procedure with no room for mistakes. However, the root of this difficulty is often a lack of managerial training.

As a result, it’s critical to understand what you’ll need to accomplish to succeed in payroll management. You will be able to allocate work ethic in the core aspects of this management if you are aware of them.



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5.1 Get good payroll software

By 2022, more than 65 percent of businesses will have used digital technologies to better organizational administration. This is not a fabrication; it is a truth affecting an increasing number of companies. And it’s understandable given the many advantages that these digital technologies provide to businesses.

As a result, specialized software is one of the most excellent methods to do payroll administration effectively. Dedicated payroll software reduces the amount of payroll calculation mistakes significantly. They also maintain proper records and data that impact the payroll computation.


5.2 Keep your calendar in mind

It is critical to inform workers when and what they will be compensated, even if it may seem apparent. Although this may seem minor, it significantly impacts the employee-company relationship. There are several compensation structures to choose from. The main thing is to let the company know how they are getting paid, whether weekly, biweekly, bimonthly, or monthly.

This significantly impacts your company’s productivity because not knowing when they are paying you may induce job stress. When considering the productivity of the workforce, job stress is critical. As a result, it is vital to create a payment schedule so that workers know when they are getting their payment; and, as a result, how much the company will pay them.


5.3 Make constant backup records

The advantages of payroll software to businesses have become evident in the text. We can locate security and backup techniques to protect workers’ personal information among them. On the other hand, companies cannot take employee data security lightly.

Hackers often aims companies to do regular cyber-attacks to acquire access to this sort of data. It just takes one breach or one blunder for them to lose a significant amount of vital information. As a result, you have to ensure to back up all of your data. This will guarantee that human resources are not losing your company’s whole data record in the case of a data breach.


6. What should you not do when managing payroll?

HR cannot or should not do certain things with payroll management. Most businesses overlook certain factors, although they have a significant impact on payroll management. Or, in many situations, companies do things without recognizing how damaging they might be to the business.

Some of these negative things you should not do when managing your payroll are:


  • Do not rely entirely on software: Many HR teams get carried away with the advantages of payroll solutions. As a result, they put their entire payroll administration in the hands of the software. This is a colossal blunder. You should spend time and effort monitoring the procedures that this sort of payroll does.
  • Never pay late: This will result in legal issues, but it will also sabotage the workplace culture between workers and the organization. As a result, your organization may have a greater rate of turnover. Workers owe it to the firm to deliver, and the company owes it to its employees to deliver.
  • Do not miscalculate: This, along with paying late, may result in a slew of legal and personnel issues. Do not let your business go to waste; make sure human resources handle payroll appropriately.


7. Make payroll management work for your company with Connect HR’s solutions

Payroll management influences business success. Currently, very few companies take advantage of the benefits that payroll management software offers. Connect HR has the tools you need to make the most of these benefits.

The WPS – Payroll tool by Connect HR is perfect for your organization. It has everything you need to manage payroll correctly. Moreover, if you use these solutions with our benefits system, you will get complete management of all payroll-related functions. Make payroll management improve your company now!


Would you like to contact us for more information about our company’s payroll software? If you have questions about our solutions and services, call us at +971 43 316 688 or write us at [email protected].

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