Payroll Software: Top 8 Issues That Surface during Its Implementation Process

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Payroll Software stores employee database for report management, keeping records, and making decisions. It helps track data for employee training, performance management, workplace safety and security and benefits overall administration domain. It can be incorporated with other software, namely payroll software, recruiting and resume management software, etc. An online HRMS provides convenience and relief to manage database, but its implementation can be an intricate process. Human resource department of a company has to manage the issues that follow the implementation process in order to make effective use of its time, investment and resources.

Issue # 1- Project Management:

Execution of HRM Software can be a long process and this may sometimes take couple of months.

Most preferably, professionals of HR management act as project team lead, with strong involvement and participation from other departments, including IT, accounting, and payroll. The team lead should have competence to deal with the challenge of managing staff availability and time lines.

Issue # 2- Choice of Software:

Software choice involves discovering technological requirements of an organization and locating ideal software that fulfills those requirements. The primary step is to determine whether to develop software in-house or purchase it from a vendor. Going with the second option involves reviewing available HRM systems, watching product demonstrations, taking note of product features and conducting a cost-effective product research.

Once a choice is made, the next vital step is securing management approval. Web-based HRMS is a matter of major investment, so a strong business backup is necessary.

Issue # 3- Timing:

Date of actual implementation is an issue that needs to be taken care of, especially when the HRM System has to be implemented in sync with the payroll software. Bear in mind that this timing encompasses pay periods, pay dates and fiscal year dates.

Issue # 4- Data Entry:

Data entry is a crucial issue. Each time you enter information, make sure that you have entered correct information. Uploading wrong entry into the system would affect overall database and the system may even crash. So, HR professionals ought to be alert and ensure that right information is being entered during software implementation. It also manages the systematic flow and entry of correct and timely data on regular basis. Implementation time would be the right time to review and improve current procedures.

Issue # 5- Staff Training:

User company staffs need to be acquainted with the functionalities of HRM software. For this, they may often have to undergo software training program which is the biggest challenge during implementation process, especially when employees are given access to the system. Training usually starts with the purchase of the software. So, it is compulsory for the HR professionals to ensure that software training is an inclusive part of the vendor agreement. HR administrators, managers and employees may need different types of training, depending on their extent of access to the system.

Issue # 6- Communication:

Other than HR staffs, the HRMS is usually used to track attendance and change personal information.  HR managers must let the employees know of the benefits of it to encourage them to use it. HR managers can introduce the HRM System during information sessions and include it as part of employee orientation.

Issue # 7- Technical Support:

Users may have a number of technical questions during the start of Payroll Software implementation. HR professionals need to ensure that technical support is given from the IT professionals of the vendor company.

Issue # 8- Security:

HR professionals need to identify the staffs of the company who would control security and who will have access to the system for protecting employee information. The administrator determines the type and extent of access to the system and sets user names and passwords. 

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