Technological changes have no doubt changed the way work processes are today. However, these technological changes have also caused a divide between employees – those who are in favour of new technological tools and those who are resistant to change. Businesses face challenges when implementing digital transformation in their organisation.
There are numerous categories that employees can fall into when it comes to embracing digital transformation.
First, there are those who are afraid of losing their jobs as a result of digital transformation. However, this is a valid concern. With the introduction of artificial intelligence and robots today, numerous menial and administrative work can be easily replaced. This then forces workers to upgrade their skills and pick up technology-related skill sets or risk losing their jobs.
Then there are the generational workers – seasoned and older employees who are all-too familiar with the existing systems and resist digital transformation for fear of looking incompetent in front of their peers. These employees tend to struggle to adapt to new complex technologies and are too embarrassed to admit how to use them. As a result, resistance becomes their way of adapting.
Finally, there are the Millennials, who are all too eager to embrace the latest technology fads, falling into the “shiny-new-thing” syndrome. While this no doubt makes it easy for organisations to get employees’ buy-in, it can also pose a problem as these employees end up losing interest quickly.
While organisations can roll out the latest technological tools, it is up to leaders to manage change communication to employees and provide them with sufficient time to learn and understand the benefits of these new technological tools.
Here are some ways in which organisation can slowly implement digital transformation into their organisation and getting employees to slowly embrace it.
Provide a step-by-step guide.
When it comes to operating a new technology system or tool, the lack of a proper guide is likely to frustrate any employee. Providing a step-by-step guide through each of the functions is likely to alleviate any fear or worry.
Suggest video tutorials.
Video tutorials are particularly useful for employees who simply do not have the time to read through guides or for less educated workers.
Have a subject matter expert.
Finally, training a team of employees to be the go-to person for new technological tools can be extremely helpful particularly when employees have questions that cannot be addressed by guides or video tutorials.
The COVID-19 pandemic has disrupted labour markets globally in 2020. The short-term consequences were severe – people lost their jobs, small businesses struggled to stay afloat and employees scrambled to adjust to remote-working arrangements.
At the same time, we also saw how organisations and their payroll management schemes continually adapt and keep on top of the ever-changing schemes implemented by the Singapore Government to support employees through this difficult and uncertain time. Digitalisation, automated work processes and flexible working arrangements were some of the adjustments that organisations had to make in order to ensure employees are still paid their salaries in a timely and accurate manner.
Considering the way COVID-19 has impacted businesses and operations, organisations may have identified certain limitations in terms of HR operational processes when it comes to working remotely. As a result, many organisations and HR professionals recognise that there is a need to improve their payroll operations. Here are some of the payroll management trends that we can expect after the COVID-19 pandemic.
Managing payroll with cloud-based payroll software
Businesses have moved towards a remote-working arrangement during the pandemic. This means that running payroll on on-premise payroll software becomes extremely challenging and complex. The first limitation is the lack of accessibility. The payroll staff are unable to physically go back to office to use the organisation’s payroll software. The second limitation is data security. Payroll contains sensitive and confidential information. Managing payroll outside of the organisation’s IT systems and servers exposes the data to potential security breaches and hackers.
The pandemic has highlighted an imperative need for advanced payroll systems. They are accessible to employees regardless of location or geographies. Cloud-based payroll software addresses those limitations by allowing remote access to payroll data, eliminating the need for payroll staff to be physically present in the office while ensuring that the necessary data security controls are in place. Most cloud-based payroll software are also able to integrate other HR functions. For example, time-tracking and tax filing as well as regular software updates to ensure compliance with changes in employment laws. This allows organisations to streamline standalone HR processes onto a unified HR platform, ensuring accurate and compliant payroll despite remote work arrangements.
Robust remote data security
Businesses are gradually adapt to the new norm of hybrid working. Data security within payroll software becomes an increasingly critical focal point for organisations today. According to Shred-It’s 2018 State of the Industry report, they found that more than 80% of C-suites in North America believe that the risk of a data breach is higher when employees work remotely. Organisations are moving towards adopting a hybrid work arrangement. Employees are allowed to work a certain number of days remotely and the rest of the days in office. This means having to overhaul internal security controls to strengthen data procedures. Particularly in the case of managing payroll processing. Payroll staff have to handle sensitive and confidential payroll and employee records. It is imperative to introduce new data security protocols as well as educate employees on data security procedures.
Some of the new data security controls that organisations can put in place include multi-factor authentication (MFA). This requires the user to go through a two or more steps verification process. Then they are able to access the payroll system. Other controls could include introducing Virtual Private Networks (VPNs). Instead of using unsecured WiFi networks to access payroll if it happens to be a cloud-based payroll platform. Besides implementing new data security protocols, payroll staff should also be trained on the internal data security procedures. They are well-equipped with the necessary knowledge to handle potential payroll data breaches.
Integration of payroll system with HRMS
The is a shift towards hybrid in-office and remote working. This stresses the need for integration of payroll software with other HR functions. Such as employee attendance, leave application, and expenses management. Organisations can consider platforms such as Human Resource Management System (HRMS) that supports the full spectrum of payroll functions.
Remote working means that there are certains limitations if HR functions were executed on individual software or platforms. This could include delayed payroll processing times, inaccurate employee records. Failure to accurately capture employees’ reimbursement, delayed expenses reimbursement and more. It is useful to integrate payroll with the organisation’s human capital management system (HCMS) or HRMS. This facilitates accurate tracking and record-keeping of employees’ details and payroll information. This also means that salary items such as leave applications, expenses claims or allowances are automatically captured during payroll processing. The result? Minimal payroll errors, high payroll accuracy and timely salary disbursement which in turn leads to happy and engaged employees
The impact that the COVID-10 pandemic had on managing payroll is clear that traditional payroll processes will change. While it is difficult to predict what the exact changes are. Organisations need to be agile and adapt quickly to the changes. Besides automating administrative processes and leveraging on technology to streamline workflows, it is also crucial to ensure that managing payroll remains accurate and compliant at all times. Hybrid-remote working becomes the new norm, organisations have to find ways to ensure payroll remains highly efficient and cost effective.