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Pegasus Blog

Can payroll and HR self-service systems boost your bottom line?

DATE

September 30, 2014


Human resources departments are facing increasing pressure to perform efficiently; many are up against higher targets and lower budgets. That’s why businesses are turning to HR automation to save time and money.

But aren’t human resources about people? So the question is; can automating the process really work? HR automation needn’t mean removing the people element from your HR function altogether, it’s about utilising tools to help your HR department run more efficiently.

A popular HR automation tool is self-service systems which are designed to transfer large amounts of HR admin to employees. Typically they allow employees to view and manage their personal details, holiday entitlement, absence records, payslips, P60s and pension details.

There are good reasons why companies such as Dell, Aviva and Pizza Hut jumped onto the self-service bandwagon and were early adopters of such systems. Let’s have a look at some of their benefits:

1. Save valuable HR time

Research by Forrester revealed that 50% of HR department’s time is spent processing employee information and dealing with their enquiries. By handing this burden back to the employee, your HR team can use their time more efficiently, be more productive and focus their efforts on recruiting fresh talent to help grow the business.

2. Empower employees

Giving employees an active role in managing their payslips, personal data, holiday entitlement and pension details anytime, anywhere can give a feeling of responsibility and control, and in some cases it can even increase staff morale.

3. Reduce costs

The cost of printing, posting and handling employee’s inevitable re-print requests of payslips can really add up, particularly if you’re a large organisation. By allowing employees to access payslips electronically you’ll eliminate these costs so the money can be used elsewhere. In fact, research by the Aberdeen Group found that HR automation can increase revenue per employee by as much as 180%! Plus, it’s also a much “greener” option for those of you that are ethically conscious.

4. Greater accuracy

Your employee is sure they have 5 days annual leave remaining whilst you’re adamant they only have 3. Sound like a familiar argument? Automated self-service systems can improve accuracy and provide real-time status updates of annual leave entitlement and absence details. It also means there’s less reliance on paperwork and there are no headaches if files or e-mails containing vital information get lost.

Going back to our original questions; can HR automation really work and can it boost your bottom line? Depending on the size and goals of your organisation and whether adequate training is given to employees when rolling out the new system, a self-service tool could make a big difference to your bottom line and free up your HR resources significantly.

To learn more about Opera 3’s Payroll Self Service contact us on 0800 919 704 .