3 Ways Modern Payroll Can Transform SMB Compensation: Save time, money, and employees

Payroll systems have become a commodity - get in, get it done, get out.

Employers leverage it out of necessity and deal with any shortcomings their system of choice runs into, and employees access it minimally to check for their W2 or change withholdings. Nothing new. Until now. 

What if a payroll system could be robust, user-friendly, full-featured, offer unique employee benefits, AND cost nothing? May sound too good to be true, but we believe payroll should be free. And it should be modernized. 

Modern payroll that embraces the dynamic needs of individual employers and employees can be a powerful tool that goes beyond traditional functions. Today's payroll solutions should do more than ensure accurate and timely payments but also offer transformative features that impact cash flow, save time, and contribute to increased employee retention. 

And by modernizing payroll, we mean much more than going mobile or digitizing processes. We mean infusing every aspect of the platform and process with additional value for the employer and employee. 

Here are three key ways that modern payroll can revolutionize your compensation strategy.

ONE: Submit and Fund Payroll Instantly - Enhancing Cash Flow and Preventing Headaches

Historically, companies have faced challenges related to cash flow when it comes to traditional payroll processes. The typical payroll submission process requires employers to fund payroll many days (sometimes a week!) before employees receive their pay. This gap can lead to cash flow constraints for employers or, at the very least, significantly less cash in the bank.

Issues can also arise from when employers submit their payroll to when employees get paid. By submitting and funding on the same day, employers can ensure all kinks (time tracking, withholdings, expenses, etc) are ironed out so payroll is run - and done. 

Modern payroll systems address this challenge with Just-In-Time Payroll. Employers can submit and fund payroll hours or minutes before payroll is due, providing a significant improvement over the conventional practice of submitting payroll days in advance. 

Benefits of Just-In-Time Payroll Funding:

• Employer Flexibility: Just-in-time payroll allows employers to submit and fund payroll shortly before the actual payout, optimizing cash flow management and correcting any errors BEFORE payroll is run. The last-minute adjustments to payroll that very often arise can be nightmares for SMB owners who then have to send off-schedule pay runs or even cash payouts to meet employees’ needs. 
  
• Cash Flow Optimization: Employers can better manage cash flow by aligning payroll disbursements more closely with the completion of work, reducing the need to allocate funds days in advance.
  

TWO: AI-Assisted Programs - Time-Saving Innovations

Traditionally, payroll processing has been associated with manual tasks, extensive paperwork, and time-consuming calculations. This increases the likelihood of errors and consumes valuable resources and time that could be better utilized elsewhere.

Modern payroll systems leverage Artificial Intelligence (AI) to streamline processes and offer innovative features like tax guidance and live employee FAQs.

Features of AI-Assisted Payroll Programs:

• Tax Guidance: AI algorithms analyze tax regulations and provide real-time guidance to ensure compliance, reducing the risk of errors and penalties.
  
• Live Employee FAQs: AI-powered chatbots or live support features assist employees with payroll-related queries, saving time for employees and HR departments.
  
• Automated Calculations: AI can automate complex calculations, minimize errors, and ensure accurate payroll processing.
  

Benefits of AI-Assisted Programs:

• Time Efficiency: Automating manual tasks results in significant time savings for HR professionals, allowing them to focus on strategic initiatives.
  
• Error Reduction: AI-driven calculations and guidance reduce the risk of errors, ensuring accurate payroll compliance.
  
• Employee Satisfaction: Live support features enhance the employee experience by providing instant assistance for payroll-related inquiries.

THREE: Increasing Retention through Employee-Centric Features

Traditional payroll structures often follow a one-size-fits-all approach with fixed pay schedules, limiting flexibility for employees with diverse financial needs.

Modern payroll systems offer employers employee-centric features that cater to individual preferences, promoting real-time pay and flexible pay schedules.

• Real-Time Pay: Modern payroll systems allow employers to offer employees access to their earnings in real-time, providing financial flexibility and empowering them to meet immediate needs.
  
• Flexible Pay Schedules: Modern payroll systems allow employers to offer employees flexible pay schedules that align with their unique financial situations, such as weekly, bi-weekly, monthly, or even payments on specific days to meet preexisting monthly bills.
  
• Salary advance features: Employers can exchange employee retention requirements for access to early pay so employees can avoid expensive third-party lenders when navigating the lumpy reality of larger expenses (homes, cars, education, etc.).
  

Benefits of Employee-Centric Features:

• Increased Job Satisfaction: Real-time pay access and flexible schedules contribute to higher job satisfaction among employees.
• Attraction and Retention: Offering personalized pay options enhances the company's appeal, attracting top talent and contributing to employee retention.
• Financial Wellness: Employee-centric features promote financial wellness by giving individuals more control over their earnings and budgeting.

Move Beyond The Status Quo

Modern payroll systems evolve compensation, offering transformative features that impact cash flow, save time, and enhance employee retention. Just-in-time payroll funding addresses cash flow challenges, AI-assisted programs streamline processes and provide real-time guidance, and employee-centric features empower individuals with personalized pay options. Embracing these innovations not only meets the evolving needs of the workforce but also positions companies as employers of choice in today's competitive landscape.

As you consider upgrading your payroll system, explore the possibilities offered by modern solutions to transform your compensation strategy, create a more efficient payroll process, and foster a workplace culture that values employee financial well-being.

Paid™ offers full-featured, modern payroll for FREE. Join the no-obligation waitlist at HelloPaid.com