HR Payroll System – Reason behind Increased Turnover
- HR Technology
- Date: 2018-03-26
Staff retention is one of the major concern of human resource department. They invest time, efforts and payment in hiring a new resource for their organization. Having the best talent for any business is actually not a job of one or two days. Therefore it seems difficult to hunt for new employees or the replacements. Instead of replacing an employee, it is quite effective if an organization is paying attention to its retention approaches. HR payroll system in a traditional way could be a significant reason behind increased turnover. It could be easily managed if management is paying attention to facilitate employees in a better way. Once best talent is successfully hired for the organization, it is the responsibility of management to facilitate them. Offering benefits to an employee means the organization is working to retain them for a longer period of time. One of the major reason observed behind reduced staff retention rate is the errors in payroll.
If an organization is working with the traditional or manual approach the chances of payroll errors could be increased. It includes:
- Business is paying late to its staff
- They might are underpaying
- They may overpay the top management but unable to balance lower staff or labors
These are the few but major reasons an employee leave an organization. In order to improve employee retention, all of the reasons are required to figure out. An effective and potential HR payroll management system could be quite supportive of such management.
HR Payroll System Errors Lead Critical Problems
If any error occurs in the payroll system, it is not only critical for the staff but also for the business itself. A small error occurs in payroll may lead an organization towards big financial loss. If an organization is unable to manage on-time salaries it loses its staff trust. Any error occurs in calculation or late salary will directly create problems for business market reputation. Cloud based HR software support in managing payroll errors. Any small error might be a reason for the big financial loss. It is not an only major issue for the staff but also for the business itself. The late calculation will lead towards late billing and other financial methods. It is important to control over it for effective results and build a strong reputation in the market.
How Errors in HR Payroll System Increase Employee Turnover?
People work for payment and salaries, if they’re facing a problem, they’ll definitely look around for new opportunity. Usually, it has been observed that staff is seeking around for new opportunities if they’re not satisfied with the current job or realizing organization is underpaying them. If an employee is continuously experiencing late salary for 2 to 3 month, they’ll respond to the management. This response could be in the form of having a discussion or hunting new opportunities. Firstly they’ll discuss it with management and try to rectify the root cause. If failed in finding out the root cause, they’ll start hunting around. Now if the organization is using traditional HR payroll system, it will be difficult to rectify the issue. On the other hand, if management is corporative and supportive enough in sharing major issue. It may encourage the staff retention. In Saudi Arabia, right talent retention is becoming one of the major issues. Let’s have an example if some organization has hired overseas staff. They’ve invested a lot in hiring but an error in payroll may cause the critical problem to them. Therefore, best HR payroll system in Saudi Arabia could be effectively used to manage payroll as well as the resources. If you’re not paying attention to these important factors, staff will consider them as management negligence. In today’s market, it is important to develop transparency in management actions to make staff more satisfied.
Effective Payroll Cause of Staff Retention
Staff retention is dependent on their satisfaction. If a business is paying attention to keeping their staff satisfied, they’ll be able to hold them for long. Staff retention is not only the target of an organization but quality and productive staff retention are required. Let’s have an example if an organization has bound the staff for a specific period of time through some contract. But they’re not facilitating them according to expectations and creating payroll errors. Staff will definitely not productive as it supposed to be.
Nowadays, organizations are paying special attention to facilitate its staff members. This facilitation could be in the form of internal recognition or better workplace culture. A minor error in HR payroll system may ruin all their efforts. It is essential to clear all of their doubts by keeping their payroll problems at priority. Working on this section will definitely boost employee’s trust for business and build a long-term relationship. Building a long-term and successful relationship with employees it actually a major responsibility of human resource department.
Implementation of cloud based HR software in Saudi Arabia is one of the most recommended approaches to handle all such issues. Implementation of right software encourages to execute all HR operations in a smooth way. This smooth execution will eliminate the factor of late salary payments. It will also eliminate the other errors and improve information transparency to build trust.