If you ask any HR manager, payroll is one of the most exhausting tasks to perform, especially if it involves manual paperwork. In many organizations in the UAE, lots of money is lost by companies due to payroll problems. To avoid payroll problems, hire payroll outsourcing companies.
Common payroll issues in the UAE
According to many HR managers in the UAE, one of the most common payroll issues is poor record keeping. You find that some HR managers cannot take note of each reimbursement, and one employee gets to benefit while the others, including the company, end up suffering. This can go on for as long as the human resource manager does not maintain an open communication channel.
It is, therefore, safe to say that poor communication between HR and employees can be another reason for payroll errors. Another common payroll issue in the UAE is late payment. Due to the workload associated with payroll, some HR managers cannot have everything in order on time. Late payments can have a harmful impact to a business because it discourages employees from working with dedication.
Other factors like mismanagement of company funds and holiday paydays are yet other complaints of many employers in the UAE. When HR cannot account for money or control the finances as it is supposed to, it is the employees who suffer the most. Many HR managers in the region are also adapting to the rescheduling of paydays that fall on holidays. By paying employees one day before the holiday, they can get motivated since they will enjoy the holiday much better than if they were not yet paid.
Luckily enough, there are several ways of cutting down these errors and saving your company some money. According to many professionals and executive HR managers, some of the best ways to avoid payroll problems in your business include:
1. Prepare early
As HR, one of the first steps of reducing payroll errors is preparing early. That way, you will have ample time to go through the records without any rush. One of the causes of payroll problems usually is the omission of a payment transaction. With more time in your hands, recalling unrecorded transactions can be more accessible. You will also have ample time to interrogate employees if you realize that figures are not adding up.
2. Technology
Payroll data needs to be accurate, which is why boosting each transaction’s security will save you a lot of money. The good news is, there are several types of payroll software online that you can always use to keep track of an employee payment. Many businesses in the UAE have resolved to use payroll technology for one main reason; Accuracy. Additionally, nobody can alter the data whatsoever. Most of the best payroll software’s are paid solutions, but you will need to watch out for con artists that may want to sell you a fake product or, worse, gain access to your computer.
3. Auditing
Regular audits can save your business a lot of money. UAE-approved auditors are some of the best in the industry, and they can help you keep track of every penny in your business. It is also recommended that you work with JAFZA approved auditors in the UAE if you intend to get accurate data about your payroll data. Note that periodic auditing will do more than help you to avoid payroll issues. You will also be able to identify any corruption or theft taking place without your knowledge.
4. Categorization of employees
It is easy to give the wrong payment to an employee simply because you forgot their position in the company. A good HR manager is supposed to maintain updated data about the employees and their roles in the business, which determines how much they should earn. When preparing for payroll, this is one of the records that will guide you to make accurate payments. On top of that, you will avoid making obvious mistakes like paying a former employee.
Here to help
Other than the ways mentioned above of keeping the correct payroll data, one of the easiest ways of solving the problem is hiring a company capable and understanding the modern employee management systems in the market. Farahat & Co is one such company. Not only are we one of the top Auditing companies in the country, with over 35 years in the market we have a stellar team that can help you do any of the tasks mentioned in this article step by step. So, contact payroll companies like payroll middle east to assist you.
