Processing payroll, distributing paychecks, preparing statements, and helping to ensure compliance with regulatory mandates are critical tasks for any company. To perform them successfully represents a challenge that you can only meet successfully by the hand of an internal or external payroll analyst.
If you are not convinced yet, in this post, we share 5 reasons why hiring a payroll analyst will be the best investment for your company.
But first, let’s know who is a payroll analyst
It is a professional who is in charge of handling employee payroll and filing and paying taxes.
This professional is part of a payroll department, which has the key functions of:
- Payroll deductions
- Maintenance of data and records
- Compliance with tax laws
- Recording of new hire documentation
- Updating and maintenance of active employee files
- Calculation of reimbursements
- Calculation and payment of bonuses, overtime, vacations, etc.
There is a lot of strategic data generated from payroll activities; you will read about it below.
5 reasons you’ll love your Champion Payroll Analyst
1. They can help you make your hiring and retention policies more efficient and productive
Although they are not from the human resources department, payroll analyst generates essential information about the hiring process and talent retention because they work with a crucial area for employees: pay, compensation, and incentives.
This professional can help you set fair pay and promotion goals. They can also help you promote better pay equity and participate in talent retention by promoting team rewards such as life or health insurance, childcare assistance, and other benefits that motivate employees.
They are not the HR department, but they contribute to talent management which is a company’s most valuable asset.
2. You can use the data generated for a Payroll Analyst to eliminate errors and inefficiencies in payments
There are two important aspects to highlight at this point. The first is the generated data from the natural process of a payment analyst, and the second is how you can leverage it to eliminate errors and inefficiencies and make strategic decisions about your company’s future.
Are you aware of the amount and types of data generated in a payment management process? Here’s an idea:
✔️Basic salary considerations and payments.
✔️Regular payments are made to permanent or temporary employees according to their compensation level and agreed upon in their employment contracts.
✔️Contingent labor costs.
✔️Payments made to contractors, consultants, or freelancers outside of the payroll.
✔️Financial rewards granted for the achievement of objectives or other performance indicators.
✔️Employee benefit payments.
✔️Payroll taxes/tax withholdings.
✔️Compliance with payroll laws and regulations for businesses.
✔️Audit and non-compliance information.
There is no limit to data, and the amount of data will also depend on the nature of your company and the contracts you perform.
How can you take advantage of all this information?
The first step is to store it and rely on your payment analyst to generate efficiency reports that cross-reference this data so we can evaluate the performance of each of the activities.
Then, if you use a World Class Software tool with this functionality, you can access it from anywhere in the world to make decisions on the future of your company and optimize the following aspects:
🏆The recruitment and retention of talent, understanding the risks and costs of each collaborator who joins the team, even if they are located in another country.
🏆Decide when to hire a new employee (regardless of the area) or when to opt for an external provider.
🏆Evalue the cost of training internal employees or outsourcing.
🏆Evaluation of the security costs of the collaborators.
🏆The use of payroll data can help to uncover the details of employee compliance and make personal rewards.
🏆Payroll data helps company leaders evaluate the costs and organizational implications of big and small decisions.
Accessing payroll data also allows you to check if there are any errors or delays, and only then can you implement solutions. To make it visible, you need a payroll analyst and a software tool that allows you to visualize the historical data in an organized way.
Collecting and analyzing payroll data, and having the tools to do so, help you make sounder decisions and achieve more robust future planning.
3. A payroll analyst will ensure compliance with tax and local regulations
This is perhaps one of the most critical points so adding a champion payroll analyst is the best idea.
Problems with tax payments and non-compliance with regulations can be very costly for companies.
Having a functional payroll system, or a global payroll implementation by an expert partner, should provide you with regular and standardized results.
Having the right tool and the right professional will avoid this type of situation because it is part of their key responsibilities.
4. Create pay equity in the company and motivation to succeed in the collaborators
This professional can propose improvements or performance bonuses for outstanding collaborators and ensure the development of the career plan of all team members from one of the crucial perspectives: economy.
In addition, they can propose and manage costs for training and personal growth vs. results achieved.
The use of world-class tools for this task and the proper performance of a payroll analyst allows leaders to set meaningful pay equity goals and help monitor progress toward company goals.
5. Complement the work of HR and enhance the employee experience
While employee relations functions are in the hands of the HR department, these activities are not exclusive to them. Pay analysts and pay leaders may also be involved in customer service.
Handling a worker with pay issues or benefits.
Respond to requests or queries from suppliers and external partners.
Calculate reimbursements, bonuses, and even overtime for workers.
Among other situations are cases for which this professional must be prepared with empathy skills, good communication, and kindness.
In general, a Payroll Analyst contributes to other departments to improve the employee experience and to maintain healthy relationships with suppliers and allies.
What can we conclude from all this?
It is a very valuable professional for your company.
They must be skilled in budgetary, legal, contractual, payroll, financial, and people management skills.
They will avoid problems with the authorities.
They will support you in strategic decision-making.
Will contribute to the well-being of your collaborators. Choose a champion Payroll Analyst to perform this essential work. In Championsys, we have 24 clients who enjoy this service at the hand of our experts. Schedule a free discovery session today if you are interested.