Important Tasks for HR and Payroll Managers

Payroll is a number-driven function that requires an understanding accounting and tax laws. However, it also deals with people and involves maternity pay, raises, bonus payments and leave encashment. HR and payroll managers must work together to ensure that paychecks are processed correctly and on time. They must also collaborate on sensitive issues, such as storing employee data securely.

Payroll

Payroll managers are responsible for the recurring business activities and data processing operations associated with paying employees. It includes managing payroll taxes and deductions, reporting to the IRS, and handling compliance with local, state and federal laws that pertain to wages and medical coverage. Typically, payroll managers hold degrees in HR management and accounting.

Regardless of academic background, effective payroll managers possess soft skills like communication and customer service. To efficiently manage the team and resolve challenges, a person must have strong written and verbal communication skills, outstanding time management, and problem-solving talents.

An employee must be paid accurately to maintain morale, productivity and job satisfaction. Moreover, a single error in the payroll system can snowball into a costly fine or lost reputation with employees. To ensure that payroll is accurate, on time and compliant with government regulations, you should ensure your HR and payroll teams understand the complexities of their roles.

A great way to do this is by holding all-staff meetings where the payroll staff can explain their processes and answer any questions. You can also invest in training to improve your employees’ understanding of the company’s policies. Another good idea is installing biometric sign-in hardware or a software solution like ADP. It helps reduce the manual work your payroll team has to do and promotes a more efficient, collaborative workplace.

Training

Training a new employee can take time when a payroll team member leaves your company. To minimize this turnover, your HR and payroll manager must prioritize training. During the hiring process, ask for supervisory references to explain how your prospective hire performed their duties in previous roles. A well-trained, dedicated payroll staff is a key component to your business operations, and you need to know that you’ll get an accurate picture of how the person will perform the job from their references. Training should be task-oriented, flexible and ongoing. Your employees may have ideas about what training they need, so consider inviting them to an all-staff meeting. You can also use tech-based training, which allows employees to access the information they need on their schedules.

It’s also important to communicate your company’s policies on payroll management to all your employees. It helps your employees understand their responsibilities and ensures everyone is on the same page about what to do and when. It can help prevent any confusion or misunderstandings, which can lead to mistakes in the future. In addition, explaining any industry jargon to your employees and providing them with resources they can refer back to as needed is a good idea.

Performance Management

Employees need to be able to set their goals, get feedback, and work as part of a team. It is why it’s important to have a performance management system in place, one that sets goals, gathers data, gives ongoing feedback and develops talent. It also helps employees understand how their work relates to company goals and objectives, which promotes engagement. Traditionally, performance reviews were held annually based solely on the past year’s accomplishments. However, studies have shown that this type of review doesn’t provide the necessary motivation to engage employees or drive results. Rather, it’s more effective to have frequent check-ins, where managers can share an individual’s progress towards reaching their goals and identify areas of improvement.

Another important aspect of performance management is ensuring that employees are properly compensated. It involves establishing and communicating pay scales, bonus programs, and compensation guidelines. It also includes calculating employees’ salaries, wages, deductions, filing reports and paying employment taxes. Managing these processes requires HR and payroll managers to have strong communication skills. They must concisely and easily convey complicated ideas to staff members. It includes verbal and written communication, active listening, conflict resolution and problem-solving. They also need to manage relationships and build trust with employees.

Recruiting

HR professionals recruit new employees by advertising job openings and attending job fairs. They also review applications and interview candidates for available positions. Once managers select a candidate, HR helps the new hire with paperwork and introduces them to their work environment. Many businesses are quite concerned about employee turnover. To reduce the risk, HR managers may offer current employees opportunities to grow careers through promotions. A common misconception is that promotions only include a title change. Still, managers can expand employees’ duties or give them higher authority and autonomy without a formal title change. For example, a salesperson might become the team leader for their division, or a junior coder might start participating in engineering operations.

When a manager considers promoting an employee, he must evaluate their performance and track their numbers and statistics to determine if they are ready for greater responsibility. Numbers and statistics can include sales figures, year-over-year growth or customer service scores. Other responsibilities for HR managers include maintaining records on the company’s employees, including hiring and retirement/end of employment actions, salary information and benefits enrollment records. These records are kept in a database, such as QuickBooks, designed to help manage payroll processing, payroll taxes and other financial data in one location.