Efficient payroll with Zenegy
Create a more efficient work day
Do you spend an unnecessary amount of time on payroll administration?
Heavy work processes, not enough structure and manual entries are among the biggest time consumers when making a payroll run.
But it doesn’t have to be that way!
Luckily it doesn’t require big organization or system changes in the company in order to optimize the payroll work. With automation and better use of the digital systems, you can obtain a lot of saved time. In this guide we will provide you with the tools necessary to create a view of your current payroll setup and 4 steps to make your payroll runs even more effective.
1. Map your current work process
The first step to optimize your payroll run is to describe the current work process. By making a description of the process regarding the payroll related tasks, you’ll be able to better see how time consuming the tasks are and which work flows might be taking up too much time. You’ve probably made your own habits and routines for what you do and when you do it and probably don't give it much thought. To create a view of all of your daily tasks might seem like a difficult task, but it’s important to prioritize this. One of the more difficult things about creating a view of your routine is that you might forget to be critical about how you do things, which means you might miss out on optimization possibilities. By creating the description for the company’s payroll run you get to see the workflow from an elevated point of view and this makes it easier to see which tasks might be taking up too much time. Maybe you’ll already start to notice tasks where there’s optimization possibilities.
How to get started
The first task in order to create a more effective work flow is a difficult one and this is no coincidence. This task creates the foundation for the rest of the optimization process and it’s important to take your time. Be practical and systematic. Try to describe the tasks over a payroll period, preferably a month that has a typical structure and in the days right before the salary payment. Make a diary about all your pay related tasks, where you describe the purpose of the task and how you usually solve this task.
Checklist to describe the work process:
- Salary input -what and how do you get input from other departments or employees
- Salary management -what do you (and maybe others) do with the salary input
- Approval and validation -who approves what and how
- Output -what happens after the payroll run
In Zenegy the payroll is set up so that you can start the payroll for the next periode quite early. This creates the opportunity to update the payroll run continuously with the available data -for example registrations and other input to the salary which means that the pressure leading up to the payroll run is minimized.
2. input and output to the salary
Are you a bookkeeper, payroll administrator or in another type of function related to accounting, you’ll know that payroll management starts with salary in-put which are processed in a salary draft and ends with a salary out-put that is processed afterwards.
Variable salary inputs are what mostly affects the payroll run in the following month. It can be everything from hour registrations, time, absence or holiday registrations, severance pay, expense, bonus, mileage and much more. All of these inputs will be sent to the payroll administrator and might come from several employees, different departments or a combination. The biggest potential for streamlining is in the variable salary inputs and this is why it’s important to structure this.
If the salary inputs are too unstructured, the person responsible for the salary might lose track of what needs to be registered and how this should be done. If you receive a lot of absence registrations by e-mail and expenses in the form of a bunch of receipts it will take a lot of focus and a great deal of manual entries. The more manual entries, the more risk there is of making mistakes and it’s also quite time consuming.
Create an overview of salary-input
There’s a lot of benefits in moving away from manual processes and using digital tools to register the variable salary inputs. You will save more time if you let the employees register their own variables, like expenses, absence, holiday etc. When all of these registrations are put in to the system continuously by the employees themselves, it frees up a lot of time for the payroll administrator and this means that it will be a lot easier and faster to complete the payroll run.
With Zenegys deviation reports, you’ll be able to decide the deviation margin on the payroll. The system will check for deviations compared to last month’s payroll. This means that if there are deviations, the system will let you know automatically, ensuring that the payroll is correct. Besides this, you can also get a number of different reports (Tax, bookkeeping, payroll, expenses and more) and also drafts of the payslips, which means that it’s easier to control the payroll and minimize mistakes.
Salary outputs in the company are what happens after you have made the salary payments.This includes payments to the employees and payments to pensions schemes, tax, holiday account, maternity etc. Typically these payments will happen automatically, if you have set this up between your payroll system at your bank. Salary output should also be delivered to the accountant department and processed. If you're spending your resources on collecting salary output data for specific reports or formats, which is needed in your economic system, it might be possible to save time by looking into automatic transfer of data between your pay and economic system.
A digital payroll system with an open API makes it possible to connect the payroll system to other systems and programs used in the company. With a digital system there won’t be a need to eksport the salary output manually to the accountant department. The transfer of data happens automatically between your systems and afterwards the accounting department can start to process the salary data directly from the economic system. There’s even more time to be saved by connecting multiple programs to the system, for instance, hour registrations-, schedule planning and R systems etc.
Zenegy has a lot of different API integrations. Find all our integrations here
3. Schedule the salary ad give yourself a head start
Be prepared for changes internally in the company and in the market by giving yourself a headstart early on in the salary process. In order to improve your work flow you must structure as many tasks related to salary as possible. Create a month and year overview and update this continuously, this is a way to make sure that your always prepared, even for the busier periods.
Create an overview of the month
The salary process is often identical from month to month so by creating an overview of the month you can define your routines and tasks for the month. You also get the possibility to put in time for inspections of the data, so you don’t end up having to check up on everything at the end of the month. For future use you will be able to use the month overview as a checklist, and in this way be more effective and lower the risk of mistakes.
Create an overview for the year
There’s both internal and external things that can affect the payroll.
A lot of staff functions, including pay administration, can benefit from having an overview of the year, because it creates a complete and unique view. By creating the year overview you help yourself with collecting all internal and external things that might affect the payroll run. In the overview you should take notes of all repeated processes in the company and all other tasks that are repeated every year. This ensures you can get a quick and easy overview of the most important tasks during the year.
The internal tasks could be yearly salary regulations or payment of bonuses within the company. The external tasks could be things such as new agreements, new rates from the government etc. By creating an overview of the year you know when sudden tasks will take place and this can help you better plan your time.
4. Use the digital opportunities
Maybe your company has already digitized parts of the work flows, but pay is usually not one of the first tasks that companies think about digitizing, as it can often be overlooked for other tasks when a company wants to become more digital.
If you have completed the first steps you’ve probably already seen that there’s a lot of potential in digitizing salary. That’s why you should be critical about the current way of doing things. Try not to be stuck on how you usually do things but be open to new possibilities. There’s a lot of time to be saved on everything from the more obvious, bigger tasks, to the smaller tasks that you might not have thought about. By digitizing these tasks you can make your payroll more efficient and automated.
After the first steps in this guide you should have a clear view of you needs in order to create a more efficient work day and this makes you better prepared to challenge your current payroll system in order to find a more automated and digital solution at another payroll system.
You can talk to one of Zenegys consultants about your company’s needs and what possibilities Zenegy can give you. Talk to a consultant.
At Zenegy we always strive to create a more digital work day and an efficient workflow for both the pay administrator and employee. Our customers, who includes both minor and bigger companies, experience a lot of time saved when switching to Zenegy, where better overview and automating manual processes results in a time saving of up to 30%.
You don’t need to invest in expensive software solutions to fit your company’s need. Zenegy has a range of different set ups which means you can adapt Zenegy to your company’s needs. And the setup specifications can be changed if your company changes.
Functions that our customers especially like:
- Mass updates of salary data
- Digital registrations
- Approval flow
- Deviation reports
- Digital documents
- Employee app
- Interactive payslip
- Realtime data in the payroll draft
Become more efficient with Zenegy payroll and HR
Your work tasks and processes can become even more efficient if more functions are gathered in one platform. Zenegy has a selection of solutions to make the administrative work more efficient.
Zenegy is a modern pay- and HR system which makes it easy for the company’s salary administrator to deal with the pay and HR tasks. Our modern and user friendly system optimizes and automates the company’s manual tasks, so you have time to focus on more value creating tasks.
Zenegy employee app gives the employee a better salary experience and the possibility to better understand their payslip. This means less questions and requests to the salary administrator because the employee can do most of the work themselves.
All registrations take place digitally for both the company and the employee and this means that the salary administrator no longer has to receive a bunch of email with questions about holiday, absence and more.
Zenegy HR is a very good addition to the payroll function and it provides your company with digital employee administration, the possibility to share documents digitally in a safe way, creates an overview of absence and much more.