Changes in software packages are a fact of life today, and keeping pace through upgrading is an essential part of running a computerised business system. I don't think I have to spell out that choosing not to upgrade old software and operating systems that have been superseded and are no longer supported can impact on profitability.
A payroll system is particularly susceptible to change, as it has to (in order to run a legal operation) keep up with the relevant SARS and department of labour specifications. The size of the company is irrelevant when it comes to legislative penalties. SMEs can be slapped with as hefty a fine as a large enterprise for failing to comply.
This is why secure, reliable payroll and HR software with advanced functionality and the ability to automate more tasks is no longer just something nice to have - it's a core need for a growing business. Businesses that are replacing their current software should see this as the ideal opportunity to position the company for further growth, by allowing it to benefit from technological improvements.
Ducks in a row
To operate effectively and get the most from software products, companies should not only invest in the best software solution, but also implement best practice procedures as part of the solution.
Often companies do not utilise software to its full capacity, resulting in a poor return on their investment. Companies with experience in and exposure to best practice solutions on an ongoing basis can add a lot of value to a business, by ensuring the company is not only replacing software, but is truly much better off as a result of it. Unless companies are reaping the benefit of increased efficiency, satisfied employees, and running competent payroll offices, changing software will have little effect.
In my experience, training employees to use payroll and HR software is one of the most cost-effective decisions that can be made. If everyone knows how to optimally use these solutions, companies can save time and money while increasing skills. By investing in software that will last the company a long time, it not only makes sure that the return on investment is great, but payroll administrators will feel they are equipped to do their jobs if they have attended training. The flipside of having a payroll expertly administered is that it builds trust among employees - everyone appreciates being paid correctly and timeously!
The IT vehicle
Technology is a proven catalyst to better business practices and new opportunities, and this is particularly true in tougher economic times. Unfortunately, technology investments may put a strain on finances as managers find themselves having to consider replacing obsolete software and computer systems faster than expected. SMEs are particularly vulnerable to return on investment and, therefore, need to see that every cent they're putting towards IT is delivering long-term benefits.
Training employees to use payroll and HR software is one of the most cost-effective decisions that can be made.
Sandra Swanepoel is sales director of Softline VIP Payroll.
While it's important to keep pace with technological advancements, what's more important is to realise that this doesn't have to be done at break-neck speed, or at an enormous expense.
Not all upgrades may be necessary for a business to continue operating efficiently and effectively. My advice is to invest in solutions that will give the company a superior solution in the long run. The intent should be to acquire the best for a fair price that will last the company for a given “investment” period. However, an eye must be kept on trends and new developments, so the company is up to speed with the changes in the software market.
Everyone is feeling the pinch, some a lot more than others, and this has, understandably, led to a certain degree of panic. Companies are frantic to cut costs around every corner. A company's current IT strategy should stay put, though. I don't advise that it be cut, especially when legal compliance in aspects like payroll hangs in the balance. Good spending does exist and it comes in the form of IT investments that will add to the productivity and bottom line. It shouldn't be all about just cutting costs, but more about controlling costs and knowing that where money has been spent to improve processes, growth will come.
* Sandra Swanepoel is sales director of Softline VIP Payroll.
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