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Contemporary Issues in Pay Roll


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In HRM payroll plays a pivotal function of managing employee pay as well as their personal information. With the advent of time, payroll itself has changed in terms of functionality and nature. Described below are some modern day to day issues faced by payroll stakeholders.

Undervaluation of payroll

Due to the burdensome workload presented along with use of payroll as a reactive approach (pay employees wages for their effort expended), payroll as a function is deteriorating. Managers view it as a norm rather than a tool for strategic outcome. If properly utilized payroll can be used for identification of cash outflow sources and better utilization of human capital and as a proactive approach rather than a reactive approach.

Outdated

Most companies view payroll as an outdated function with them trying to implement new software to ease the burden and keep up with the changes of technology to increase response to employee demand. Yet most payroll software used by management is tailor made rather than custom built, in order to save expenses on an undervalued process. So most of these software used have limited functionality that limits potential use payroll as a strategic tool and the knowledge of the user on these tailor made software functionalities also limits potential usage.

Compliance Issues

Political and legal laws change on a periodical basis in any country. Payroll officials must keep up to date with these changes in order to ensure no compliance issues arises due to violation of government rules and legislation. Aside from this are policies imposed by long standing customers which too need to be closely monitored for deviations.

References

  • Lawrence, J., 2013. Seven modern payroll challenges. [Online] Available at: https://www.hrzone.com/talent/retention/seven-modern-payroll-challenges [Accessed 24 June 2018].
  • Ruhland, T., 2015. 5 Common Problems With Payroll Management. [Online] Available at: https://blog.accuchex.com/5-common-problems-with-payroll-management [Accessed 25 June 2018].
  • Stratton, L., 2016. 6 Common Payroll Issues. [Online] Available at: http://www.portebrown.com/Consulting-Blog/6-common-payroll-issues [Accessed 24 June 2018].

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