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The 3 Biggest Challenges Facing Manual Payroll Processing

Posted on Wed, Jul 25, 2018 @ 08:00 AM

By Emily Sharp, Marketing Specialist

One thing that all organizations have in common is the need to pay their employees. Payroll is arguably the most important aspect of your business and it can make or break you.  We are seeing organizations of all sizes transition from a manual, paper-based payroll systems to automated cloud-based systems. This shift is happening very slowly in spite of the fact that manually processing payroll can be inconvenient and stressful for your business.

Here are 3 major challenges manual payroll systems present:

Human Error

Frustration and stress are two things that seem to always accompany the manual payroll process. This process burdens financial and HR teams with tedious day-to-day tasks, such as documentation and cross checking. The paper system is also highly susceptible to human error. The smallest errors can create incorrect or late payments.

Time and Attendance

There are times when multiple employees request time off, go on vacations or fall ill. These are situations that must be tracked by payroll but doing it manually can be overwhelming. The documents used in tracking time and attendance for every employee pile up fast, which can get frustrating for the people in charge of this process. There is also a greater chance of miscalculation that can lead to employees getting paid more or less than what they deserve. This can result in decreased employee satisfaction levels and lower employee retention rates.

Manual Payroll Systems


Managing important employee data in a hard copy or excel sheet, is not a secure way to maintain that data. Ensuring the security of your employee’s data and critical information is critical to your company’s success. When you manually process payroll, the chances of important information getting into the hands of the wrong person is very high. A leak in this information could be a huge issue for your business. Exposure to data pirating or loss can cripple an organization.

Switching from a manual payroll system to a cloud-based system would help decrease headaches, lower costs and save a lot of time for finance and HR personnel. If you are manually processing payroll, consider switching to a cloud-based solution. It could be just the thing to put your organization on the path to greater workforce success.

Reducing Payroll Errors


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