19 July 2024
The role of Payroll Software in Manufacturing
Should manufacturing businesses use payroll software?
Yes, they should at least consider it. Payroll errors can be extremely costly and can lead to fines. When you have a large team – and lots of staff – it is a lot easier to make mistakes while trying to stay on top of employee payments, pensions and any other benefits they should receive. Payroll software can be a great solution.
But let’s explore payroll software for manufacturing.
What are the key features of payroll software for manufacturing?
Payroll software for manufacturing must cater to the unique needs of this industry, ensuring efficiency, compliance, and accuracy. Key features (and most popular with manufacturing businesses) include:
Time and attendance tracking. This is with digital Integration with time clocks and biometric systems and ensures tracking of shift schedules, overtime, and attendance.
Shift and overtime management. Gives support for multiple shifts and complex scheduling and provides accurate calculation of overtime, including compliance with labour laws. This often crosses over into HR, so fostering communication between the two departments is key.
Job costing and labour allocation. This provides allocation of labour costs to specific jobs or projects, with detailed reporting on labour expenses for cost analysis and budgeting.
Integration with ERP and HR Systems. Provides a seamless integration with enterprise resource planning (ERP) and human resources (HR) systems. Has data synchronisation to ensure consistency and accuracy across platforms.
Employee self-service portal. Gives online access for employees to view pay stubs, tax documents, and update personal information, with the ability to request and approve workflows for time off and shift changes.
Scalability and customisation. Has the ability to scale with business growth and adapt to changing needs, with customisable features to fit specific manufacturing processes and requirements.
Benefits administration. A simple management of employee benefits, including health insurance, retirement plans, and other perks. Should give automated deduction calculations and compliance with benefit regulations.
Accurate payroll processing. Provides precise calculation of wages, deductions, bonuses, and commissions. Can give direct deposits and multiple payment options.
Data security and privacy. Organisation has robust security measures to protect sensitive employee and financial data, in compliance with data protection regulations (e.g., GDPR, CCPA)
Analytics and reporting. Comprehensive reporting tools for payroll data analysis. Provides customisable reports to track payroll expenses, labour efficiency, and other key metrics.
Support for multi-location operations. Key feature is a centralised payroll management for companies with multiple manufacturing sites, with location-specific compliance and reporting.
This is an exhaustive list, and individual manufacturing businesses may not require all these features. But by incorporating some, payroll software can significantly enhance operational efficiency, ensure regulatory compliance, and provide valuable insights into labour, costs and productivity.
But what are the benefits of using payroll software tailored for the manufacturing industry?
Improved accuracy and efficiency for a start! Automated calculations minimise human errors in payroll processing, and streamlined processes save time for HR and payroll departments, allowing them to focus on strategic tasks.
Compliance is also more efficient. Automatic updates and compliance features ensure adherence to labour laws and tax regulations, reducing the risk of penalties. Compliance reports are generated effortlessly, simplifying audits and regulatory submissions.
Payroll software also means better time management. With accurate tracking of shifts and overtime, this ensures fair compensation and compliance with labour laws, and Integration with time clocks and biometric systems provides precise attendance records.
Accurate job costing and labour allocation helps to understand the true cost of production, aiding in budget management and pricing strategies. Detailed reports provide insights into labour expenses, identifying areas for cost-saving and efficiency improvements.
Scalability and Flexibility means the software can scale with business growth and adapt to changing manufacturing processes and workforce structures. Tailored features and workflows also meet specific needs and requirements of different manufacturing environments.
The payroll software gives employee satisfaction as the self-service portal means that employees can access their pay stubs, tax documents, and update personal information, increasing transparency and satisfaction. Accurate and timely payroll processing ensures employees are paid correctly and on time, boosting morale and trust.
Efficient management from the software simplifies the administration of employee benefits, including health insurance, retirement plans, and other perks. It also ensures accurate calculation and compliance with benefit regulations.
Seamless integration with ERP (Enterprise Resource Planning) and HR systems ensures data consistency and reduces duplicate entries. Streamlined processes across different business functions improve overall operational efficiency.
Data security and privacy is strong with payroll software. Robust security measures protect sensitive employee and financial data from breaches and unauthorised access. Regulatory compliance ensures compliance with data protection regulations like GDPR and CCPA.
Comprehensive reporting tools provide insights into payroll data, helping in strategic decision-making and customisable reports track payroll expenses, labour efficiency, other key metrics, which aid in performance evaluation and planning.
Support for multi-location operations with payroll software allows centralised payroll management for companies with multiple manufacturing sites.
So why choose MHR's People First integrated HR and Payroll software?
The People First software from MHR Global connects and streamlines everything: HR, payroll, talent and performance management, learning and development, HR analytics, workforce management, employee engagement and internal communications.
What does this mean for your manufacturing organisation?
- HR becomes a strategic driver, saving time and resources by simplifying and automating manual HR and payroll processes
- Productivity increases and your people are better connected wherever they are
- Real-time payroll provides access to data throughout the entire pay period and enables informed decision-making
- All your HR and payroll needs are met through a single, easy-to-use, integrated platform.
In a nutshell, the People First system is:
Fully integrated. People First supports the complete spectrum of HR and payroll need, making life simpler for you and your employees.
Intuitively easy. Built using the latest technologies, People First is the most instinctive and employee-centric HMC platform on the market.
Connected and aligned. As a cloud-based, mobile-first platform, People First helps to build a more connected, engaged and resilient workforce.
