In many companies, payroll is often one of the most substantial operating expenditures incurred and not just on salaries that need to be paid. Yet, return on investment for software solutions used for payroll is often left unthought of. It is essential for your business, to assess the ROI of current systems to compare against other payroll software solutions on the market. Doing so allows you to see if your business could be saving money, here are three things you need to examine individually to determine your ROI.
1. Operational Costs
Assessing ROI requires a keen knowledge of what you are currently paying for with your software system. Every cost adds up, from software and support to upgrade fees and additional modules. Examine every cost involved when evaluating your current payroll against other software solutions. This makes it simpler to understand what you are spending and on what. It also helps you determine future costs and realise any savings.
How productive is your current system? Running payroll requires many steps, so it’s important to examine your entire process to understand your level of productivity. Begin by looking at how much time and work the payroll department spends collecting data for payroll such as timesheets. Then, try to determine how much time it takes to complete a pay run, and how swiftly and easily they can identify and resolve payroll errors. Compare this against other software solutions to see if this process can be streamlined to enhance productivity and reduce the time and costs associated with running payroll.
It’s important to consider the accuracy of your current system when calculating ROI. Although the actual value of errors may be more tricky to estimate, having a strong ROI depends massively on the accuracy of your timesheets, tax deductions and much more. When evaluating your ROI, consider the accuracy of your current system against a payroll system that is integrated within an HR Software that seamlessly shares necessary employee information. This integration of software solutions helps to lessen the administration and ensure the most up-to-date information is used when running completing a payroll run.
Understanding the ROI of your current system will help you determine if it is truly meeting the needs of your business and may guide you towards deciding on a new software system with a higher ROI for your business.