3 HR Payroll Pain Points & How to Overcome Them

Table of Contents

  1. I. Executive Summary
  2. II. Ensuring Compliance with Changing Laws & Regulations
  3. III. Doing More with Less & The Role of HCM
  4. IV. Engaging the Millennial Workforce
  5. V. Conclusion
  6. VI. About SBS Payroll, Inc.

I. Executive Summary

HR departments in small and mid-sized businesses are challenged to keep up with ever-changing government regulations, doing more with less and reporting to management – in addition to the daily challenge of addressing employee issues and hiring.

Those that address these challenges effectively benefit from a happy C-suite and engaged employees.

Those that don’t suffer from the anxiety of not knowing how to effectively handle what lies around the next corner.

Specifically, this whitepaper covers the following:

  • Ensuring Compliance with Changing Laws & Regulations
  • Doing More with Less & The Role of HCM
  • Engaging the Millennial Workforce

II. Ensuring Compliance with Changing Laws & Regulations

In just the last few months, there have been changes to the California minimum wage, FUTA credits affecting how much more California employers have to pay, and the implementation of new FLSA overtime rules that were later halted by a federal judge.

How to Keep Up

You’ve got two choices to keep up with all of these changes:

  • Dedicate 1-2 staff members to monitor, implement and comply with all labor law news
  • Rely on a partner to keep up with them for you and to let you know when you need to make changes and who can also help you make these changes

Buyer Beware

If you choose the latter, just make sure you understand how they keep up with changes themselves, how they communicate these changes and how many communications they’ve sent out in the last six months. Many payroll providers claim to have this capability but the devils in the details.

III. Doing More with Less & The Role of HCM

Organizations of all kinds, from businesses to government agencies to nonprofits, all have to do more with less. How can technology be leveraged to do more with less in HR and processing payroll?

HCM Software & Effective Decision Making

Human resource information systems (HRIS) were followed by human resource management systems (HRMS) developed to be a repository of employee and other HR information.

Today, HRIS and HRMS represent HR databases and just a part of human capital management (HCM) software. Best-of-breed HCM also includes payroll, benefits administration and time and attendance tracking. Instead of siloed databases, HCM includes executive dashboards, reporting and analytics so that management can make decisions anytime without needing someone to manually run a report and email it to them every time they have a question.

A brief comparison:

Core HR
All HRIS Capabilities Plus:
All HRMS Capabilities Plus:
Personnel Tracking
Workflow Automation
Benefits Administration
Document Management
Time & Attendance
Reporting & Analytics
Employee Self-Service
On-Premise Software
On-Premise Software
Cloud Software

Payroll Integration

California businesses often run payroll out of multiple systems: information is exported from their HRIS/HRMS software, organized and modified in Excel, and then imported to their accounting software. Depending on the number of employees, we often see HR spending 4-5 hours per pay period or more being spent to do this process manually.

With HCM software, all payroll information is already in the system and, with a simple export to your general ledger in QuickBooks, you can avoid the manual processing in Excel and conduct payroll in a fraction of the time it takes today.

Benefits Administration

Many organizations have been enrolling new employees in benefits manually for many years. Why take advantage of HCM’s benefits administration capabilities? Consider how much time could be saved with automatically reminding employees to re-enroll every year during open enrollment without HR’s involvement.

Time & Attendance

HCM also includes time and attendance so there’s no need for separate time tracking or time clock software. HCM T&A tracks and monitors overtime, rounding, meals and breaks, error monitoring, and other time policies for complete and accurate time cards and automated payroll processing.

Employee Self-Service

From on-boarding to updating contact and banking information to vacation requests to signing off on the new employee handbook, having employees make updates themselves via HCM can give HR a major productivity boost – especially by avoiding data entry and the headache of the inevitable mistakes. Just say “no” to managing this information in email, Post-It notes and cocktail napkins.

Workflow Automation

From applicant tracking to approving timesheets to automated enrollment, HCM’s workflow automation capability can increase productivity by 50% or more.

Being reminded to collect new and expired I-9s, to update credentials and for managers to approve requests also helps to ensure legal and regulatory compliance.

Document Management & Storage

HCM also includes document management and storage so that employee files can be searched and retrieved quickly, from anywhere that authorized employees have access rather than having to search through file cabinets, hard drives or shared drives.

Reporting & Analytics

Management has been known to keep HR teams on their toes by requesting a wide variety of reports from labor distribution and pay per location to every employee’s birthday or shirt size for the softball league team.

Typically, small-to-midsize companies run several different applications to manage their HR, payroll, time tracking, and benefit activities. This creates data gaps for human resources, finance and frontline supervisors, minimizing an organization’s ability to analyze and use their workforce data for every day decision making.

With HCM that includes a report writer function, HR can take control of data and build, modify, and produce reports by simply pointing, clicking and dropping in desired fields.

Tips for Success

We recommend that you make sure to have your prospective payroll and HCM partner provide an estimate of the professional services involved to set everything up. A significant amount of time may be required, so it’s important to understand up-front costs and how long it will take to see a positive return on investment (ROI).

We also recommend that those in HR who will use the HCM see a demo before you decide which HCM is right for you to evaluate ease-of-use. This will stimulate their buy-in of the new software and minimize resistance, the latter of which is one of the main reasons why new software implementations fail.

If your company is growing, you’ll also want to make sure the HCM system can handle your current workforce as well as what you expect in the next three years. One of the national payroll providers has three separate payroll software systems for small, mid-sized and large organizations that do not scale or work together.

IV. Engaging the Millennial Workforce

Though you may not be feeling this one yet, effectively engaging Millennials will be key to the success of many Southern California organizations for decades to come.

Approximately 73 million Millennials were born between 1980 and 1996, and they are expected to comprise about 50% of the US workforce in 2020 and 75% of the global workforce by 2030.

Millennials Want More

“Are Millennials getting what they want out of work and life? Not so much,” concluded Gallup as part of their recent report, How Millennials Want to Work and Live. Gallup found that Millennials struggle to find good jobs that engage them and only 29% of employed Millennials are engaged at work.

How to Engage Millennials

Millennials are the most tech savvy generation yet to enter the workforce. They’ve probably never faxed anything and wonder why there is so much paper in a digital world. They also expect intuitive cloud software to get their work done in the office or remotely.

Which of the following do you think is a better way to engage Millennials?

  • With a paper-based onboarding process and clunky on-premise HRIS/HRMS software
  • With paperless processes, cloud-based HCM software and mobile-friendly access

The answer not only creates stronger engagement with the Millennial workforce but is also crucial for doing more with less from all employee generations.


V. Conclusion

Though the demands on HR professionals have never been higher, it’s never been easier to manage them when you partner with a provider of payroll services and HCM software. Just be sure to choose wisely: asking them how they address the pain points outlined in this whitepaper is a good place to start.

VI. About SBS Payroll, Inc.

Serving small and mid-sized businesses throughout Southern California, SBS Payroll believes Payroll Done Right Means Doing More than Just Payroll. This is why SBS offers a full suite of payroll, HR services and related support, including time and attendance, benefits administration and human capital management (HCM) software.

SBS is committed to providing the most responsive customer care by answering your questions on the first call, and with deep payroll and HR expertise so that you can focus on your core business. SBS is based in Santa Ana, CA, and is a wholly owned subsidiary of FBG Holdings, Inc. More: sbspayroll.com

Thank you for your interest in the 3 HR Payroll Pain Points & How to Overcome Them Whitepaper