Survey Result: 44% say HR data inputs are the biggest threat to payroll accuracy.
When conducted in the right way, surveys are a great way to learn about what people on the ground at global payroll really think. Honest survey feedback is really great when it comes to shining a light on the key issues affecting global payroll processing at multinational employers today.
The GPMI recently conducted a survey that featured over 600 participants from the world of global payroll and the results were revealing and enlightening. The 2020 “Getting the World Paid”industry survey focused on a range of topics impacting global payroll today and threw up a lot of interesting, and some very surprising results.
One of the most interesting questions asked focused on the area of payroll accuracy, specifically the root causes of decreased accuracy when processing global payroll. Topping the list for a question around the three most prominent root causes of decreased global payroll accuracy was HR data inputs, with a very sizable 44% of respondents pointing to this area as their biggest concern when it came to accuracy.
In this article, we are going to look a little closer at HR and other data inputs into the global payroll process, highlight the key risks and examine what can be done to improve accuracy and security around this data.
Manual Input Risk
HR plays a key role in global payroll processing as data batches coming from HR include key employee information such as salary, benefits, tax, personal details, and other relevant payroll elements. It is essential that this data is accurate and kept up to date at all times - with any changes being swiftly imported into the relevant system, as these changes will have a material effect on the employee paycheck and salary amount.
It is quite likely that the processing method along with the mechanism for delivery are the two things that play on the minds of global payroll professionals when they state that they have concerns around HR inputs and data accuracy. If the processing method involves manual input of employee data, then there is an immediate risk element introduced due to the possibility of human error. Mistakes happen and if the payroll function is relying on an individual to manually input data using a keyboard, then this risk will always there no matter what level of validations and checks are in place to counteract it.
Also, if this data is delivered via e-mail or spreadsheet upload, this represents another level of risk. Data files can be corrupted or intercepted, they can be sent to the wrong people or they can contain inaccurate, out-of-date or obsolete data. Payroll professionals are relying on HR data to be accurate and there is little they can do other than receive a data file in good faith and follow the process of delivering the payroll. There may not be a process in place for the global payroll professionals to check and validate this data or it may not be their responsibility to do so, depending on how global payroll processes work in the specific company.
Automated Inputs
Automation and automated workflows, when deployed correctly, can introduce an immediate process improvement when it comes to HR data and its delivery to the global payroll team. When you apply automation to repetitive tasks, you immediately save time on cumbersome manual inputs while also benefiting from the removal of the likelihood of human error, as machine learning takes over driving the process.
Automation improves accuracy as payroll data and processes become digitized and automated, increasing accuracy via integrated data flows while reducing manual work for HR teams. Payroll professionals benefit from getting some valuable time back to focus on other areas of the payroll delivery process- their time is best spent checking trends and anomalies rather than losing hours to repetitive manual entry work.
Robotic Process Automation (RPA)
Robotic process automation is going to play a key role in the delivery of data in all future global payroll processes at major multinational companies. RPA can take over the transfer of crucial employee data from Finance or HCM systems, and rapidly transfer this data into global payroll engines or systems via machine learning in a secure data environment. Repetitive tasks are automated and manual input is removed from the process, this boosts the speed of delivery and reduces or eliminates the risk associated with human error.
A HR system that is integrated with innovative technology which incorporates robotic process automation would then be in a strong position to significantly reduce or eliminate entirely, data inputs errors from its global payroll processing.
Industry experts who have seen RPA in action believe it is capable of automating at least two-thirds of the repetitive tasks associated with the processing of payroll on a monthly basis. Data errors occur when people have to access, check and validate pay run data manually on a regular basis- mistakes like typing errors or cut and paste issues are common. RPA was designed to take over these tasks and access, validate and transfer data in a quicker and more secure way. RPA also creates a clear audit trail so you can always see what it did to information at every step along the way, and this is useful for compliance controls too.
RPA can also help with detecting anomalies or potential gaps in the process- it can automatically check pay run files, validate data, highlight missing data fields, identify employees who should not be part of a specific pay run and create an exception report quickly, giving payroll professionals time to adjust files and rectify issues.
Technology Partner
RPA or machine learning automation will require another level of technology to be added to any current software systems in place. Technology specialists can help transform global payroll at multinational employers and both HR departments and HCM systems need to be a part of this digital transformation. A technology partner is in a position to examine what technology is in place now, what are the risks associated with this technology when it comes to payroll data accuracy and how quickly or easily this technology can be integrated with innovative cloud-based technology.
Payroll technology partners are very used to working with HR data inputs and applying best practice levels of standardization around data and processes to improve the way in which this critical data is transferred to other systems in order to process the payroll. They will leverage innovative technology tools which they will use to apply structure and format to the data, enabling it to flow in a better and more accurate way across the various systems. Their job will be to improve accuracy and efficiency while reducing manual inputs, data duplication and time-consuming tasks for the HR team.
Payslip and HR data inputs
By interfacing between the employer’s HCM system and payroll vendors, the Payslip platform automates data flows, including inputs from HR systems and enables additional accuracy and faster payroll turnaround times. Payslip is deployed in the cloud so international employers can manage their payroll processes, people, data and reporting on one central platform.
Our platform serves as central link between employer’s HR and various data sources to payroll providers in country. We employ automation and RPA where appropriate to secure data feeds and remove manual duplication or error. Standardized global processes increase efficiencies and empower both HR departments and local payroll teams to deliver accurate and on-time payroll. Payslip consolidates various data feeds to standardize payroll and provide transparency, visibility, and control.
Payslip regularly work with international employers who still rely on manual batch uploads from HR and do not yet have a process in place to automate the entry of payroll inputs from their HCM system. We address this by automating these inputs and data flows direct from the HCM into the Payslip platform using robotic process automation (RPA). HR data inputs will no longer be the reason for decreased payroll accuracy when your HR department integrates with Payslip technology.
To find out about integrating your HR system with the Payslip platform or to learn more about the services we offer, visit our website today or get in touch.