What is the cost of payroll mishaps? Each cycle demands complex administration, accuracy and time-sensitive outputs. This activity increases in intensity within larger organizations where the margin for human error escalates.
The payroll reconciliation function is one of the most time-consuming activities of the HR process, often involving interactions between various departments. Protecting your payroll process to ensure it works flawlessly, on time, every time, is critical to any business from both a revenue and employee-experience perspective.
Time vs Skills
With organizations always looking to streamline and simplify processes to be more efficient and cost-effective, payroll reconciliation is a prime candidate given the cyclical nature of it and the time-consuming manpower it takes to get it right, or as is often the case, it goes wrong!
Level Global works with many complex businesses, from large shared service organizations to public sector providers, each of them tells us similar stories, that they are using highly skilled people on non-productive non-core related tasks due to the critical nature and high-risk factor of the processes involved.
For example, we have seen highly qualified CIPD professionals involved in the payroll reconciliation process. This is an ineffective use of resource for the company, and neither is it engaging work for the employee who has chosen a career that supports human learning and development, not data processing.
With any predominantly manual process, albeit supported by technology, there is always room for human error, particularly with so many factors and data points involved in each calculation and reconciliation cycle.
As with any finance and tax-related process, there is an associated risk of failed audits and penalties when errors go undetected. There is also the risk of brand damage when wrong payments are made, particularly when clawback is necessary.
On top of this, every year companies are subjected to reduced cash flow and revenue, directly linked to overpayments due to human error or incorrect data being used during the reconciliation process.
In our increasingly “gig” based economy, flexible working is frequently being embraced by many organizations. One company Level spoke to has more than 20,000 seasonal employees each year, and ensuring they are all paid in a timely, accurate manner is a difficult and laborious task with the potential to incur a high-volume of errors.
Level spoke to a major logistics organization, they told us they inadvertently overpay workers £5m a year due to errors in the payroll process. Via manual intervention, £4m is eventually recovered, or so they believe. £1m, however, remains uncollected.
ASK yourself, is there an easier way?
Payroll reconciliation is complex, but it doesn’t have to be difficult.
What if a cognitive AI application could perform payroll reconciliation in seconds, translating all file types and highlighting the differences, enabling you to easily view and fix issues so you can spend more time working on the things that matter?
The ASK Payroll application from Level Global takes the robot out of the human and leaves them free to do more value-added tasks for the organization, and more fulfilling work for them as employees.