Real-time payroll: what is it, and how could it benefit you and your team?
MHR’s People First HR and payroll software includes a real-time payroll system that will transform your payroll functions in a way you’ve never seen before.
What is real-time payroll?
The evolution and future of payroll is something that MHR has been championing for some time. In recent years, payroll has evolved somewhat more slowly than other business functions, something that has been discussed by Mark Jenkins, our Chief Service Officer. So, what is real-time payroll, and why is it the most anticipated development in recent payroll innovation?
In short, real-time payroll is an automated process where payroll calculations are made instantly as changes are made in real-time. This functionality evolves payroll into a revolutionary planning tool that streamlines processes, increases accuracy and improves data visibility instantly.
What are the benefits of real-time payroll for payroll teams?
Traditionally at the end of every pay period, there is a mad rush within the payroll department, creating unnecessary pressure and stress to ensure everyone is paid on time and accurately. With real-time payroll from People First, the cut off is significantly reduced to a few days before the end of the cycle, and that’s more to give a BACS payment time to clear. This reduces the risk of errors as well as reducing retrospective changes. Therefore, there are fewer peaks and troughs in a payroll professional’s workload.
This steady workflow means payroll teams can breathe easy and can level up supporting the business in new, more valuable ways.
Let’s face it: no one likes getting things wrong. Making mistakes when running payroll can be a kick to morale for both those who are running the payroll, and the employee whose pay is affected. Pay errors can lead to employees not having enough to pay bills at the start of the month, leading to stress and resentment.
We have such an emotional attachment to our pay, so financial wellbeing becomes a huge factor too. Our employee experience report suggests that 47% of employees wish their employer would focus more on financial wellbeing. The UK loses 12.8 million working days per year due to work-related stress, so there’s a real business benefit to investing in real-time payroll to boost financial wellbeing.
Real-time payroll can also help remove the risk to your business. Information will surface early, which gives time to correct errors before it’s too late, without the pressure of scrambling to get people paid on time.
Payroll has a bigger part to play in a business than some may realise, and your payroll team is much more than the people who pay the wages. Their potential can be realised with real-time payroll. For example, they can model salaries more easily, showing how they’re upskilling and evolving talent, with compensation management considered. That makes the business more agile as a whole.
What are the benefits of real-time payroll for employees?
A report from Wagestream has found that 70% of UK employees are worrying more about money. Giving employees complete transparency and enabling them real-time visibility to enable financial planning is key.
Traditionally, individuals have only been able to access their payslips at the end of the pay cycle, but with a real-time payroll system, employees can see exactly how much money they are earning, as they are earning it.
For example, if an employee does overtime, it can be inputted into the system and the amount they are owed for that day will automatically be calculated and appear on a dashboard.
Real-time insights enable employees to have a full understanding of their interactive payslip, from overtime to expenses, to tax and salary sacrifice. With this information to hand, employees can make informed financial decisions, which does wonders for their wellbeing.
What are the benefits of real-time payroll for organisations?
Aside from all the above, there are loads of benefits an organisation can find from switching to real-time payroll. The most important is effectiveness.
Our payroll research shows organisations waste up to 75 hours per pay cycle, so having effective and efficient processes in place is critical to running payroll successfully.
The ability to track people costs in real-time means that organisations can move from reactive to proactive planning. This added agility allows organisations to make quicker, smarter strategic decisions and better prepare for the unexpected, improving business resilience.
How is real-time payroll in People First changing the face of payroll?
MHR’s leading cloud-based HR and payroll platform, People First, has the first real-time payroll engine, changing the face of payroll.
This means our customers have access around the clock to up-to-date people costs, enabling them to make strategic decisions with immediate impact throughout the month.
With People First, payroll teams can plan better, avoid mistakes and be freed up for more added-value work, and employees have access to an interactive payslip throughout the month, so they have a clear view of what they have earned, when they’ve earned it, boosting financial wellbeing. That leads to higher morale, stronger retention and better performance across the board.
Plus, with AI-powered Payroll Anomaly Detection, patterns are continuously monitored. Any outliers get flagged before they impact your bottom line. With payroll fraud accounting for losses of £12 billion annually, this is a gamechanger in terms of compliance and peace of mind.
See how People First’s real-time payroll can enable data-driven decision making and deliver a level of accuracy and speed never seen before.
