It is a question I was recently asked by a payroll manager who called me for some advice about payroll software, and it got me thinking – perhaps people are not as aware of SaaS (which stands for Software as a Service) as I thought? Subsequently, I decided to write this short blog to help others out there get to grips with what SaaS is and perhaps more importantly, why I think everyone needs to know about it.

Software as a service (SaaS) primarily refers to cloud-based applications offered via a software distribution model whereby a third party hosts the applications and provides them to customers online. Logging in via a web interface, such as Internet Explorer, Google Chrome, Safari or Firefox or another similar internet browser makes them extremely accessible. Recently, these types of software have been made increasingly available through mobile devices too. Software as a service (SaaS) means that as well as accessing data in this way via software, the data itself is hosted elsewhere.

Ultimately, companies save money by renting software instead of purchasing it. Subsequently, instead of your company investing in a server where the information is stored, with SaaS, the data will usually be stored centrally by the third-party offering the cloud-based service. Software as a service provides many significant benefits for organisations, and much enterprise software is now in fact delivered in this way, leading to time and budget savings for companies that adopt these types of solutions.

Advantages and reducing Capital Expenditure

You need to know as the benefits that can be brought about through adopting software as a service (SaaS) solutions can be highly advantageous for businesses and payroll operations of all sizes. One significant benefit is cost and time savings. In the past, IT departments would manage the servers that host the applications that employees access and that store the data the employees save. With software as a service, this is unnecessary, as the third-party provider takes care of all of this. This means that less staff are needed to administer and manage servers and data – which in the past could have been very time-consuming. For example, each time a software update or IT maintenance is required, previously the provider would have had to coordinate with your IT team, and your team would have been involved in making the changes and upgrades. However, with SaaS, the provider will manage these changes on your behalf. It also means that fewer servers are required by the organisation making storage more secure and the cost of storing it, more efficient. Servers can be particularly costly, so utilising SaaS can be a great way of reducing IT capital expenditure. Also, SaaS applications are unlikely to require the upfront costs associated with traditional software implementations because all you need is a login and an internet connection to install them. These server, maintenance, upgrade, and implementation savings make SaaS applications a very attractive proposition.

Affordability and Flexibility

Software as a service also makes software much more affordable for companies allowing many businesses to access software that they just would not have had the financial resources to obtain in the past. Traditionally, the software has been sold by licences that are then associated with specific users or computers in an office. However, due to the way that the data is stored centrally, both hardware and software licence costs can now be much lower, making this a much more affordable option for business users. Another benefit from a cost perspective is that SaaS business models typically offer applications on a “pay as you go” model. Subsequently, companies pay for what they use, rather than paying for exclusively dedicated and expensive servers rarely utilised to their full capacity. This pay-as-you-go approach provides incredible flexibility and options for companies because it means they can scale up and down, depending on business needs at any given time.

Mobility and Accessibility

Software as a service is increasingly becoming more mobile as well (i.e. software of this type is now frequently accessed via smartphones). Many companies have developed their SaaS offerings into versions that are specifically designed to work on mobile devices, rather than merely making their website available on the mobile device. The result is it makes them significantly more user-friendly for mobile adopters. This mobile advantage means that SaaS solutions can be accessible via smartphones to access anytime and in any location, provided that there is internet availability. The result is that employees can access the systems they need remotely, such as when they are home, out in the field or with clients. It also provides opportunities for more flexible working for employees. Considering the number of hours payroll or HR professional work beyond 5:30 pm; it is easy to see why the prospect of implementing SaaS solutions can be exciting to payroll and HR managers alike.

Integration

Another critical benefit of software as a service (SaaS) applications is the fact that in many cases these can easily be integrated with existing or new SaaS applications. The net result is that SaaS solutions make it easier for businesses to link up one system with another, passing data between them without causing major headaches for your IT team or indeed between HR, Payroll and Financial functions.

Drawbacks

Like anything new, there are some drawbacks to SaaS applications. One is a potential loss of control (traditionally the responsibility of your IT department) is now managed by the third-party SaaS provider. Another is connectivity issues or requirements. Since SaaS software is web-hosted, applications will not work if there is a problem with your Internet connection. Similarly, applications may also be slower than in-house server applications if your internet is slow or if servers hosted by the third-party provider are located on the other side of the world. Some applications may also be limited regarding function and features, so it is essential that the SaaS solution you are considering does offer you the features you need to run your payroll or HR function efficiently.

Conclusion

Ultimately, you’re probably already using SaaS without even knowing it, but if not, as you can see, you probably should be. Software as a service has tremendous benefits for business and can save a lot of human resources, time and money, as well as a great deal of hassle. Let’s be honest; payroll departments are stretched enough already so if SaaS can help reduce stress within your payroll department, then looking into Software as a Service for your business today could prove extremely worthwhile.

This article was written by Nick Day, CEO of JGA Recruitment – the leading Payroll, HR & Reward Recruitment Specialists.

Nick Day | CEO
JGA Recruitment Group
Payroll, HR & Reward Specialist Recruiters
Email: nick@jgarecruitment.com
Tel: 01727 800 377

The digital age is transforming all businesses, without exception. Payroll is no different and like other back-office functions has naturally been impacted by the digital age. There have been many changes to payroll – some of which that have crept in overtime and some that hit with a big bang. All have been affecting how payroll operates in many different ways, such as through the use of cloud-based systems, mobility and robotic process automation (RPA). Read on, and I will explore each of these in greater depth.

Digital payroll management and automation have been one of the primary ways in which payroll is changing as a direct result of the digital age. This automation and digitisation of processes are highly beneficial because, as Capgemini highlight, it allows payroll to be ‘significantly more productive’. RPA also reduces the risk of human error within payroll systems. As long as the correct information is input by the payroll administration in the first place, the system will take care of much of the rest. The time saved by payroll companies can thus be directed towards other activities, and overall digital advancements provide the opportunity for payroll to be more efficient.

Meanwhile, Forbes reports that one of the fundamental changes brought about by digital has been the use of cloud-based systems in payroll. Such systems are web-based and no longer require a person to be logged in on a specific machine to gain access to the data within. As long as an internet connection is available, anyone should be able to access the system at any time with their login details. The hosting of data in the “cloud” rather than on-premises has therefore led to the opportunity for increased mobility. One of the significant advantages of this is that payroll administration can be carried out from anywhere and employees can access the data via mobile devices, in addition to on their desktops in the office. One of the benefits of this digital advance is that there should be fewer payroll deadlines missed. Data seen by one person will be consistent with that observed by another, helping to reduce consistency issues, lower complexity and aid problem-solving. Fraud is also easier to monitor for and track, as all of the data is accessible in the same place.

The benefits of using a digital cloud-based system do not end there, and one improvement is that IT staff are not needed within the payroll firm to manage the system. Cloud-based payroll systems controlled by the provider, who take care of all of the maintenance and upgrading activities themselves. This digital advantage has typically allowed payroll companies to make savings regarding IT costs associated with maintaining payroll systems. The risk is also transferred, as the company hosting the payroll system is responsible for resilience in the case of issues such as natural disaster – though payroll companies should undertake due diligence to ensure that there are the appropriate levels of backups in place. Some aspects of data security are also managed by the provider, though of course the business and individuals within it still have responsibility for proper security protocols, such as keeping passwords safe. The use of digital solutions such as cloud-based systems allows payrolls to scale systems up and down when needed without increasing cost permanently, as usually, companies pay for what they use when they use it. The result is a no more requirement to pay for additional, expensive servers, “just in case”.

Also, robotic process automation is already impacting the payroll industry, and this digital change offers significant benefits to payroll companies and teams. Robotic process automation is the utilisation of robotics technology to carry out processes and deal with transactions. There is a wide range of activities where these could be applied. Ernst & Young have explained that any standard and repetitive payroll activities that are carried out could be performed by robots rather than machines. I am of course not referring to walking, talking robots but rather, software that can learn. Any tasks that have clear, pre-programmed rules and work with structured data can be undertaken by robotic process automation (RPA) technology, where logical decisions can be deduced. Specific areas where RPA can help is in automating data entry, carrying out reconciliation and validating data, reviewing quality, and working within simple business rules. Data processing errors and data compliance problems might be handled by RPAs, such as the discrepancies between data that payroll has and that which HR has stored.

Overall, the digital age has brought and continues to bring significant benefits to payroll teams and organisations. Companies that have not yet adopted digital technologies should consider doing so, as the productivity and cost efficiency benefits of doing so can be considerable.

How have you seen the digital age affect payroll? Please comment and share!

This article was written by Abu Choudhury, Director at JGA Recruitment – the UK’s Premier Payroll & HR Recruitment Consultancy

If you are looking for expert talent in the fields of Payroll, HR or Reward, then please call me or email me and I would be delighted to discuss how we can help.

Abu Choudhury | Director

JGA Recruitment | JGA Payroll & HR Recruitment

Email: abu@jgarecruitment.com | Tel: 01727 800 377

People often claim Payroll should be part of a Finance function rather than an HR function. Payroll professionals process and calculate payments so it must be part of finance, right? Additionally, Payroll departments are also responsible for paying bonuses, dealing with changes in taxation legislation as well as a host of other important financial tasks. These responsibilities alone leave many with the viewpoint that Payroll is a Finance responsibility.

But is it?

At first sight, this logic may seem difficult to argue with. Some companies have even created a section within their Finance teams called “Finance HR”. A study of HR professionals carried out by Advanced Business Solutions found that there are many mixed opinions on this matter. The study was carried out both in the UK and the USA and showed that only 25% of participants believed Payroll should sit within HR. However, 24% of participants felt that Payroll should be a component of the Finance team (with everyone else thinking it should be positioned between the two or be altogether outsourced)! The thinking behind positioning Payroll within Finance is down to the fact that Payroll is cost-sensitive and is typically the most significant expense for most organisations. The payroll function is also very numbers driven. This makes a compelling case for placing Payroll within Finance. However, the relationship between HR and Payroll is a close one too, and maybe more important than you think.

Here’s why:

The relationship between HR and Payroll is essential due to the close correlation between the activities undertaken by each. HR has an instrumental role in determining how best to remunerate talent, and Payroll, in turn, is responsible for ensuring that approaches to reward management put into practice. This is a critical factor for defining the role between the two and for making a case for excellent relationships between them. There are numerous other examples of this, not just the monthly pay run. These include the payment of bonuses, as well as raises in salary. They also include the ties between firing people and that person getting paid as well as other areas such as absenteeism, sickness leave, maternity pay, paternity pay, adoption pay, starters and leavers and more. These are all areas where a good relationship between HR and Payroll can lead to a more efficient working partnership, which ultimately results in improved employee services provided to staff.

Another important, but linked concept is the fact that Payroll contains significant employee-related confidential information, often accessed or relied upon by HR. For example, Payroll information could be analysed to support HR diversity and equality agendas. These are employee-related areas that may be managed by HR but are intrinsically linked to data held and controlled by those in Payroll. If Payroll is situated within finance, it might be more difficult for HR access data to analyse whether diversity and equality policies are being productive. Offering equal opportunities or fair pay are just two examples, but there can be many more. By closely linking Payroll and HR operations it is possible to track correlations and put in place systems for reducing inequality. Together, HR and Payroll functions have all the pieces to put puzzles together to develop, analyse and implement extremely effective employee policies and initiatives.

Confidentiality is also an area where the relationship between Payroll and HR is intertwined. The decisions that are made around pay and benefits need to be highly confidential. So too, does the data that both HR and Payroll utilise to ensure that people are paid in a timely way. This includes data such as home addresses, National Insurance details etc. From a practical perspective, this is another critical reason why HR and Payroll need to have a close relationship and why that link needs to be robust. With new GDPR data protection regulations well on their way, it makes, even more, sense to solidify the relationship between HR and Payroll, if even just for data protection purposes (though of course there are more reasons than that, as shown here).

Another essential reason why Payroll and HR’s relationship should be a close one is the fact that decisions that HR make drives what Payroll does, and arguably more closely and in greater detail than decisions made by Finance. For example, Finance may decide that the budget for pay will not be more than a certain amount each year. However, it is HR that will work with managers to determine what people will be paid and why. Finance does not have an oversight of this, and arguably, with its intensive focus on numbers, does not have the close, in-depth experience of understanding the skills, knowledge and expertise that different employees bring to a team. This would make it challenging for Finance to work with Payroll supporting the latter on decisions made, or even making the decisions in the first place.

Ultimately, the relationship between Payroll and HR is more intricate and interlinked than might at first be realised. Getting underneath the surface, it seems clear that this is a relationship that needs to be healthy, robust, retained and nurtured, despite the pressure from some to locate Payroll in Finance.

As always, Love payroll, love what you do, work smart, work hard – just be careful not to overdo it.

This article was submitted by Nick Day, CEO of JGA Recruitment – the leading Payroll, HR & Reward Recruitment Specialists.

Nick Day
CEO
JGA Recruitment Group
Payroll, HR & Reward Specialist Recruiters
Email: nick@jgarecruitment.com
Tel: 01727 800 377

Working hard is important. Indeed, as everyone who works in Payroll knows, working too hard is sometimes necessary, particularly around the busiest times of the year.

Payroll deadlines can cause stress levels to rise and if a problem occurs and payments are incorrect, then the midnight oil starts to burn. Payroll is a critical function, getting it out, correctly and on time can make or break a business. The ramifications of a delayed or incorrect salary payment run can be significant because overpaying, underpaying or not paying employees at all will result in knock-on effects that can rock a business to its core. Disgruntled employees can become lose faith in their employers and seek employment elsewhere. Overpayments can be a nightmare to recover. Directors may hold the payroll department responsible. The stress can be unbearable!

At JGA Recruitment we specialise in payroll recruitment so I speak to payroll professionals every day, and many in my view are overworked, overstressed, undervalued and underpaid. So before you reach your breaking point, what are the signs we should be looking out for? Are you working too hard?

There is a serious side to this too. Work can be depressing, and those who work long hours are twice as likely to experience mental health problems such as depression. A study by the Finnish Institute of Occupational Health at University College in London discovered a clear link between overtime working and depression. Another study found a 67 percent higher risk of coronary heart disease among stressed workers too.

In some cases, people just do not know how to switch off. In others working too hard may only occur at critical times such as the end of the monthly payroll run. However, some people simply work too hard, all of the time. Worse still is the fact that many of you will not even be aware you are doing it. If you are reading this now, this could apply to you! So what signs should we be looking out for?

Here are seven tell-tale signs that you work in payroll and you are working too hard.

Working more than 50 hours a week — a number of studies have shown that working past a certain amount of hours can make a person unproductive. In fact, studies show that working either 55 hours a week or 70 hours a week results in the same level of output and productivity. If you are working long hours, you may be making an impression of being a committed Payroll team player by being at the office a lot, but you won’t be producing much more than the person next to you that comes in and leaves for regular working hours. Rather than working too hard, you would be better off doing your set hours, but focusing on doing an excellent job within that time and being highly productive. Ultimately the long hours are counter-productive as you could burn out and end up having to take time off sick — and that won’t impress anybody.

Trouble switching off — if you have trouble switching off when you’re away from work, and can’t keep your hands off your phone for checking for work emails; you’re working too hard in your Payroll role. There are very few tasks in Payroll that can’t wait until first thing the next morning, compared to say, emailing someone at 10pm at night. Again, to avoid burn out, you would be better off not checking work email, or making work calls out of hours, as this will allow you to properly switch off and relax. That way, when you are at work again, you will be fresher and ready for everything the day throws at you.

Making mistakes — when you work too hard, you are more likely to make mistakes. This is linked to working too many hours since after a while you become tired and burnt out and cannot think straight. If you start making more mistakes in your work than in the past, keep check of your hours for the next week or two, and compare this to the hours you were doing in the past. It is very likely you’ll find that you’ve been working too hard.

Not exercising — when you are working too hard it is all too easy to cut back on essential health aspects of life such as exercising. You think to yourself, “I won’t run tonight, I’ll just finish this off, and I’ll go tomorrow instead.” This is a slippery slope, mainly since exercising helps clear your mind and make you more productive in general. Famous, successful executives such as Richard Branson swear by exercising as part of a healthy routine that supports work, and the Harvard Business Review even goes so far as to suggest that exercising is part of your job. The Harvard Business Review states that mental agility is related to physical routine and that there are many cognitive advantages of exercise. If you avoid training so you can work more, you are not only working too hard, you are also engaging in behaviour that will make you less productive, so this is a problem to watch out for.

Not socialising — similarly to not exercising, if you are cutting down on time spent socialising so you can spend more time in your Payroll job, you are working too hard. Socialising does not necessarily bring about the same benefits that exercising does, but it does help you to take your mind off work for a while and focus on other things. This does have productivity benefits when you go back to work.

Feeling frustrated and fed up — when you feel entirely frustrated and fed up with everything this could be a sign that you’ve been working too hard. Long hours can make a person irritable, and unproductivity can also have the same effect. Your irritability could well be caused by working too hard, so watch out for this one.

Feeling Depressed or Anxious — As the Finnish Institute of Occupational Health study has shown, there is a clear link between working too hard and an increase in mental health problems. Mental Health Awareness week in October highlighted the rise in mental health problems in the UK with 65% of people saying they have experienced a mental health problem. Acknowledging you have a mental health problem can be difficult but if you are feeling depressed or anxious then it could be a sign that you are working too hard or that you are setting work expectations for yourself too high. Perhaps it is time to reconsider your work-life balance. A healthy mind and good wellbeing will typically result in better quality work too.

While working “too hard” may seem like a good thing on the surface of it, dig just a little deeper, and it can be seen that this can lead to burn out, mental health problems and ultimately a lack of employee engagement. If you’re making mistakes and feeling frustrated and fed up, you are not going to present the image to your boss of a person who is ready for new opportunities or promotion either. Instead of working too hard, why not work hard while you’re in the office but make sure you get that all-important downtime you need to be productive. Kick back and watch some TV once in a while, or get out and do some sport. That way, when you are at work, you’ll be better able to engage in what you’re doing, and you’ll make a much better impression too.

Love payroll, love what you do, work smart, work hard — just be careful not to overdo it.

This article was submitted by Nick Day, CEO of JGA Recruitment – the leading Payroll, HR & Reward Recruitment Specialists.

Nick Day
CEO
JGA Recruitment Group
Payroll, HR & Reward Specialist Recruiters
Email: nick@jgarecruitment.com
Tel: 01727 800 377

There are few periods in the day that are more “yours” than the hours between 06:00 and 08:00. You get to work after your commute and are thrust into the maelstrom of noise, pulling you this way and that, inevitably ruining any best-laid plans.

Or maybe you are like me, in that you can never just “go home”; instead, you find yourself tending to the needs of your children or are ferrying them to activities! Perhaps, you have busy social calendar? Whatever your circumstances, if you are like me, you will find that very few evenings finish without some sort of family or social related drama or activity.

But in the mornings, when everyone is (relatively) quietly going about their own business, that is the time when you can truly shape your life in your own design. Therefore, for the most part, there is every chance that your morning routine should remain relatively uninterrupted.

I often wonder why we don’t put more thought into this period of our lives? I call this “All before 09:00 time”!

Far too many of us see our mornings as a frantic sprint to get “ready” for the day in the least time possible. Brushing your teeth in the shower? Easy. Ironing a shirt while eating a piece of toast? Down to a fine art. Slurping a coffee while speed walking on the way to the station. Don’t we all do that?

It is easy to feel like a high-flying go-getter if we can go from mild slumber to a caffeine-fuelled world-beater in 30 minutes. What role could an early morning possibly have, other than a prelude to the real events of the day?

Well, if your morning is organized it can not only saves you vital energy for the first crucial events of the day; but it can also stimulate you into getting a head start on everyone else. Knowing how the first 60-90 minutes of your day is going to be structured lets you feel in control, and allows you to save your energy for the important decisions to come when the “day proper” starts. Ever wonder why Mark Zuckerberg wears those boring hoodies? Well, it is one less decision to make in the morning. Let’s face it, the guy has enough on his plate. But why should we be any different?

I don’t want to tell you all what the perfect routine involves, as we are all different. But I can say for certain that it starts with waking up at the “right” time. If you wake when you are in a period of “light” sleep, you feel refreshed and energised and alert. There are apps available, which measure your activity, and even waking 30 minutes earlier than usual can make all the difference. Yes, you can wake up at 06:00 and feel more refreshed than if you woke up at 06:30! Play with your own alarm, alter it in 10 minute increments until you find the “perfect wake up time” for you. It really does work!

For many people, a great morning routine involves some exercise and some creativity. Rather than a sluggish and meandering first few hours of the day, why not get the blood pumping and the brain cells ticking over? If a rapid 30 minutes on the exercise bike and 15 minutes of stimulating reading (or even creative writing) don’t do it for you, I don’t know what will.

Many of us have ambitions to read more, write more, exercise more or maybe we just want to spend a little more quality time with our children (who always seem to be up at the crack of dawn). The hours before 09:00 make all of these personal ambitious possible. Personally, I like to run. Every Tuesday, my alarm goes of at 05:30. My trainers and running gear is already laid out ready for me to to wake up to. No excuses now. This is my “half-marathon” morning. This is a weekly ritual and watching the sun rise has become a morning picture I cherish. 21km and 90 minutes later I am ready for breakfast and keen to take on the day and it is still only 07:30.

A morning routine is like signing a contract with yourself. If you commit to it, and try not to let anything disturb it, your life can be transformed. If you know that you are going to start every day on the “right” foot, your chances of having a successful day are going to be that little bit higher.

This article was submitted by Nick Day, CEO of JGA Recruitment – the leading Payroll, HR & Reward Recruitment Specialists.

Nick Day
CEO
JGA Recruitment Group
Payroll, HR & Reward Specialist Recruiters
Email: nick@jgarecruitment.com
Tel: 01727 800 377