Already Have HR & Payroll Software? The Real Issue Might Be Capacity
Many businesses already have someone looking after HR and payroll; they may also have good HR and payroll software in place, so why do businesses struggle with HR and payroll administration taking up so much time? The answer isn’t always that something needs replacing; sometimes, the issue is simply capacity.
Software Helps, But the Work Still Needs Doing
HR and payroll software can make processes much easier. It can organise employee records, manage documents, support onboarding, track absence and help process payroll, but the software is still a tool.
When a new employee joins, someone needs to make sure their information is correct and their records are updated. When an employee changes their hours, salary or personal details, someone needs to process those changes.When someone leaves, there is administration to complete. And before payroll is processed, someone still needs to make sure information such as new starters, leavers, overtime, absences, pay changes and other employee updates is accurate and ready.
Technology can make administration more efficient. It doesn’t necessarily remove it.
Small Tasks Quickly Add Up
Most HR and payroll admin tasks don’t seem particularly large on their own, but the real problem is volume. A few employee changes, several new starters, payroll queries, missing information and upcoming leavers can quickly create hours of work, and as businesses grow, so does the administration behind their workforce. That’s when an HR or payroll professional can find themselves spending more and more of their week managing routine processes.
It doesn’t mean the person isn’t performing well. It may simply mean the workload has grown faster than the capacity available to manage it.
What Is Your HR Team Spending Its Time On?
Having an HR professional is valuable, but it’s worth considering where their time is going.
An experienced HR professional can support managers, improve employee engagement, work on retention, develop better people processes and deal with more complex employee matters. If a large part of their week is instead spent updating records, preparing routine documentation, processing starters and leavers or chasing payroll information, there is less time available for that higher-value work.
Routine administration still matters. It needs to be completed accurately and on time. The question is whether every administrative task needs to sit with your internal HR team.
Payroll Has the Same Challenge
Having payroll software doesn’t mean the work surrounding payroll disappears either, as payroll relies on accurate information being available at the right time.
That can mean checking and managing:
- New starters and leavers
- Pay and contractual changes
- Overtime
- Absence information
- Employee detail changes
- Payroll queries
If information is missing, someone has to chase it. If something is incorrect, someone has to resolve it. The payroll system may process the numbers, but there is still an administrative process behind getting those numbers right.
You Don’t Always Need to Replace What You Have
When workload starts becoming difficult to manage, businesses often look towards two solutions: buying another system or hiring another employee. Sometimes those are exactly the right choices, but they’re not the only choices. It can be useful to first look at the work itself.
- Which tasks genuinely require your experienced HR or payroll professional?
- Which tasks are repetitive and administrative?
- Where is your team losing the most time?
- What keeps getting pushed back when things become busy?
This can help identify whether the real problem is the people, the technology or simply a lack of administrative capacity.
Outsourcing Doesn’t Have to Mean Replacing
Outsourcing is sometimes viewed as an either/or decision. You either have an internal HR team or outsource. You either use your own software or use an external provider. But it doesn’t have to work that way, businesses can use external HR and payroll administrative support alongside their existing people, software and processes.
Your HR professional can remain responsible for the areas where their knowledge and experience add the most value. Your existing HR and payroll systems can remain in place. The administrative workload can simply be divided more effectively.
Get More From What You Already Have
Before replacing your HR software, changing payroll systems or automatically recruiting another person, it is worth asking one question: Do we actually have a systems problem, or do we have a capacity problem? Sometimes, the best solution isn’t adding another system or changing the people you already have but it’s giving them more time to do their jobs properly.
At Staffinity Solutions, we support businesses with daily HR and Payroll administration alongside their existing teams and systems.
Book a Free Consultation
If your HR or payroll team is spending too much time on administration, speak to Staffinity Solutions about where we could support your existing setup.
We’ll take the time to understand your current setup, where the workload is building up, and whether additional HR or payroll administrative support could help, without replacing the people or systems you already have.
Staffinity Solutions Team
CIPD & CIPP Qualified HR and Payroll Professionals