Work still to be done on electronic payment distribution Work still to be done on electronic payment distribution

Work still to be done on electronic payment distribution
24 Nov 2017

Multinational companies are not taking advantage of automating the employee payment distribution process as much as they could. The process includes electronic payments and electronic payslips, and the goal is to cater to 100% of employees. If this goal were realised, there would be no need to produce paper cheques, send out payslips and/or hand out payslips in the office. Automating these processes frees up payroll staff to work on more value-added activities.

Why it’s important

Electronic payment distribution is not only important to reduce the number of manual transactions undertaken. It is also a vital part of business continuity and disaster recovery planning. Strategic implications

Although most companies focus on automating electronic payment, which is mandatory in some countries, the need to focus on transactional activities will not be reduced until the entire endto- end process is automated. This means that every employee who receives an electronic payment should also receive an electronic payslip. The only exception would be where local legislation states otherwise.

Employee self-service and mobile support must also be in place for all employees to benefit from electronic payment distribution. Most importantly, while automating electronic payment removes the need for some transactional processes and activities, real efficiencies will not be gained until each component of the payment distribution process is covered.

Does your company have a 100% electronic payment distribution rate? Do all employees have access to electronic payslips? As you look at ways to increase the efficiency of your payroll processes, automation should definitely be on your list of improvement initiatives.

 

By Felicia Cheek, global payroll advisory programme practice leader and senior business advisor at The Hackett Group.

 

Multinational companies are not taking advantage of automating the employee payment distribution process as much as they could. The process includes electronic payments and electronic payslips, and the goal is to cater to 100% of employees. If this goal were realised, there would be no need to produce paper cheques, send out payslips and/or hand out payslips in the office. Automating these processes frees up payroll staff to work on more value-added activities.

Why it’s important

Electronic payment distribution is not only important to reduce the number of manual transactions undertaken. It is also a vital part of business continuity and disaster recovery planning. Strategic implications

Although most companies focus on automating electronic payment, which is mandatory in some countries, the need to focus on transactional activities will not be reduced until the entire endto- end process is automated. This means that every employee who receives an electronic payment should also receive an electronic payslip. The only exception would be where local legislation states otherwise.

Employee self-service and mobile support must also be in place for all employees to benefit from electronic payment distribution. Most importantly, while automating electronic payment removes the need for some transactional processes and activities, real efficiencies will not be gained until each component of the payment distribution process is covered.

Does your company have a 100% electronic payment distribution rate? Do all employees have access to electronic payslips? As you look at ways to increase the efficiency of your payroll processes, automation should definitely be on your list of improvement initiatives.

 

By Felicia Cheek, global payroll advisory programme practice leader and senior business advisor at The Hackett Group.

 

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