African
organizations are coming under enormous pressure to implement automated
payroll and HR solutions so that they can keep pace with global
competition and the growing demands of tax authorities and regulators.
That’s
according to Gerhard Hartman, Head of Department, Sage HR Africa, who
says many African businesses – especially mid-sized enterprises – must
replace legacy systems and automate manual processes to remain
competitive in a rapidly changing market. This is especially the case as
African companies find themselves competing against multinationals with
established IT infrastructure and as governments throughout Africa put
in place more stringent labour and tax laws.
According
to the Sierra-Cedar 2014–2015 HR Systems Survey White Paper – 97% of
companies worldwide have adopted payroll applications. And the
whitepaper revealed that over 50% of the Survey respondents of all sizes
were planning to increase spending on HR technology in the year ahead.
“This shows that African businesses that don’t modernise their
environments risk falling behind the trend,” says Hartman.
Hartman
says that the tighter tax and regulatory environment makes it vital for
African organisations to put in place solutions that streamline keeping
records and doing payroll calculations. Such solutions ease the process
of catering for payroll deductions such as social security and tax
incentives. They also make it simpler to keep track of yearly changes to
tax regulations that impact on payroll tax calculations.
“Without
an automated payroll solution, most businesses will find it difficult
to perform accurate calculations and file tax submissions on time,”
Hartman says. “With African governments putting more focus on governance
and tax compliance than ever before, responsible companies must have
robust and accurate ways to capture and report on payroll and HR data.”
An
automated solution will take care of calculating the complex formulas,
generating the relevant compliance reports, and keeping accurate
records, sparing the person responsible for the payroll reams of manual
paperwork, Hartman says.
A
sound automated payroll system is also critical in managing the
business’s financials and planning around its resources, he adds. It
also helps businesses avoid issues such as payroll fraud, late wage and
salary payments, or inaccurate calculations of deductions and overtime. A
good payroll solution is thus a foundation on which a business can
build better financial and HR practices, says Hartman.
“Payroll
solutions help to hone the strategic focus of the HR department, says
Hartman. “They free HR and payroll managers from the drudgery of
paperwork so that they can focus on developing and motivating employees.
In addition, they provide management information that executives can
use for better business forecasting and strategic planning.”
For
example, payroll can help businesses understand how employees are
contributing to profitability, what resources they might need to engage
and at what cost for major projects, and where they have gaps or
surpluses in their human capacity, Hartman says. “Our clients tell us
that our software doesn’t just streamline processes. It also helps them
make smarter business decisions.”
Once
a robust payroll solution is in place, organisations can start looking
at features such as Employee Self-Service, which enables further
efficiencies and helps companies to improve engagement with their
employees, says Hartman. New technologies such as the cloud mean that it
can be surprisingly quick, affordable and easy for companies to roll
out electronic HR and payroll processes that transform their businesses,
he adds.
Source: African Herald Express
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