For any Canadian organization, managing payroll can be a major challenge. When it comes to larger firms, the difficulties might stem from having an equally substantial number of workers, but for small and medium-sized businesses (SMBs), the issue is another one entirely. While these companies may have fewer staff members who need to receive accurate paychecks on time, it is often more of a hassle to produce these documents. For instance, some SMBs might not have a particular employee who can take care of this responsibility or the methods being used to record the relevant information is outdated.
By using payroll software, leaders can easily boost the efficiency of their payment processes. Increased automation has a number of important benefits, from drastically reducing the time it takes to determine an employee's pay to ensuring that all staff-related records are correct. As a result, SMBs can dedicate more of their hours to product development, customer service and more, which can greatly impact the bottom line. Additionally, because of their levels of automation, these solutions can help enterprises adhere to Canadian payroll compliance standards.
Earnings on the rise
Another reason it can be advantageous for companies to leverage payroll software is that as their ranks grow, they may need to adjust to changes, such as different pay rates or employees working different hours. Meanwhile, they need to ensure their recordkeeping stays accurate. This can be difficult to achieve by hand, especially if many shifts are occurring at once. According to Statistics Canada, now is an important time for businesses to deploy these technologies, as the nation's workers are making more money.
The source found in its most recent payroll report that earnings grew an average of 3.1 percent year-over-year in March. Compared to February, rates in March jumped 0.7 percent, bringing the average weekly earnings of non-farm workers to $915. At the time of the survey, employees were working slightly more than 33 hours per week, up from 32.9 hours from both February 2013 and March 2012.
The greatest growth was found to be in the construction industry, in which payroll employment rose 5.8 percent year-over-year, followed by real estate, rental and leasing (4.4 percent).
Financial Post noted that in a recent survey by Randstad, 73 percent of Canadian workers see strong pay and benefits as crucial when deciding whether to take a position. If businesses want to gain the best employees, they should stay abreast of rising pay rates in order to keep their offers competitive.
To continue to support the country's workers and strengthen their own outcomes, SMBs should implement payroll technology for increased accuracy and efficiency.