This is the fourth blog in our industry payroll mini-series. This mini-series will look at payroll across multiple industries and provide insight on the impact it can have on an organization.
It is no secret that digital customer experience is becoming the standard for financial service institutions. Customers have the freedom to make deposits, schedule appointments, check their balance, and more through apps and websites. If customers get to enjoy this convenient access to processes and information, why do employees still have to deal with the hassle of cumbersome payroll processes at these same financial institutions? What should be a valuable system that gives employees the information they deserve and provides HR and Payroll professionals important metrics is unfortunately still complicated and tedious for many.
According to Deloitte, there is a major digital transformation acceleration occurring in the financial services industry this year in order to enhance efficiency. Cybersecurity, cloud data, and analytics seem to be the priority for many companies. Payroll, however, is being left on the back burner – even though it could be an incredibly valuable investment. Numerous companies are still using manual, hand-written processes, which can be time-consuming and leave too much room for error. Others are using automated processes, but they are often outdated or over-customized to the point that it is not beneficial anymore and rather difficult to operate. These inefficient systems are not aligned with the transformation financial institutions are making in other areas of their businesses.
Making the transition to an advanced payroll solution can be the answer to these problems.
It may be daunting to do so if your current process seems to be working “just fine” and there are other pressing financial needs. However, the benefits you will reap in the long run are substantial. Here are a few reasons why you should consider investing in an advanced payroll process for your company:
1. Employee autonomy
Easy access to account balances, tax information, PTO, and other payroll components should be standard for all employees. Many outdated systems make it difficult for the employee to get this information because they must go through the payroll department to get answers. Instead, a digital solution could provide employees immediate access to their own restricted information – and allow your payroll team fewer distractions. Furthermore, solutions that include a mobile app would make this information available on the go from their smartphone or tablet. Putting the information at their fingertips will empower employees and give them a sense of control. After all, happy employees are more engaged, benefitting the company’s productivity and customer relations.
2. Real-time analytics
Diversity and pay-equity in financial services are still a work in progress. If the data to break down the necessary barriers is not available, then how can substantial changes be made? An advanced payroll solution gives your company access to these real-time analytics, along with many useful others, that allow you to dive deeper into these issues and make educated decisions to improve in these areas.
3. Minimize compliance risk
Massive national and global financial organizations have countless regulations to abide by, making it impossible to manage if they are being followed in the right places. Smaller organizations with smaller payroll departments have too many regulations for a few people to keep track of and stay up to date with. Accuracy is essential in avoiding fines and a damaged reputation, and an automated system that knows what regulations to apply when and where can be the solution.
4. Improve productivity
Productivity can improve considerably in multiple business functions by making a single switch. The team will spend significantly less time completing payroll than they would manually completing the process or working their way through a difficult digital system. They will also spend less time answering questions from employees or tracking them down for information that goes missing. All these advantages free up time for the payroll team to focus on other important tasks. Employee engagement will increase, too, as the overall employee experience is improved. Additionally, automation minimizes costly errors that are easy to make when doing everything by hand. Ultimately, it will save your company time and money – who would say no to that?
5. Streamline processes
Go a step further by selecting an inclusive solution. Information silos are common between payroll and HR departments, but they often need the same information about their employees. This hurdle can be eliminated by opting for one central solution for all your combined needs. This will further solve issues related to requesting PTO, earned leave, retention rates, and more by making the information easily accessible and manageable for both departments. It will also benefit employees who no longer have to be a middleman between departments while seeing fewer errors when it comes to their paycheck.
It may seem as though your current process is working well for your financial service institution, but an automated, digital solution will result in a world of difference and bring internal efficiency to another level. By benefitting nearly all employees, it should be a top priority investment for your company.