Embrace New Tools to Cut Costs
Finance people (good ones, at least) love to find ways to maximize business spend. And cutting payroll costs is one of our favorite ways to do exactly that.
Thankfully, technology is helping companies do more with less. When paired with a smart strategy, the right solutions turn payroll into a number of cost-cutting opportunities. For example:
Web-based workforce management (WFM) tools
These solutions equip leaders to more intelligently organize and manage team members. The result is fewer redundancies and a more efficient output. These tools also create a more informed and capable management:
AI-powered payroll automation
These tools remove the need for manual payroll data entry and processing. Choose an automation tool that calculates deductions, such as medical and dental insurance, and administers benefits without human involvement. The result will be reduced labor costs associated with completing these tasks, as well as fewer penalty fees and lawsuits from inaccurate human input. Plus, you’ll enjoy having a management team that is less stressed and has more time to handle anomalies and nuances brought up by their subordinates:
- • Hands down, Gusto is the payroll automation tool of choice here at Ignite Spot. Gusto streamlines our payroll work while ensuring that we stay compliant.
- • Experts at Business.org agree, but you’ll still benefit from their comparison of the other payroll automation options available.
Express pay administration and disbursement
More and more companies are paying employees in real time. The perk is so new that it still has a number of names, including “instant access,” “pay flexibility,” and “express pay.” But experts say it’s here to stay. Express pay simply means employers are learning how to do payroll in a way that gives workers their earned wages immediately or on demand.
Coverage from Employee Benefit News reports that employers offering this benefit experience enhanced ability to attract applicants, lower employee turnover, improved time-clock compliance, and even an increase in requests for more hours. The reciprocity makes sense: as employees enjoy the immediate fruits of their labor, their gratitude and motivation show.
Interestingly, analysts predict the trend will continue gaining steam. This is an offering especially beneficial for the 78% of workers living paycheck to paycheck and those in unbanked or underbanked groups. The best part is, you can expect your own long-term costs to reflect the move: PCMag’s investigative writers agree that you’ll reap a thankful, more engaged workforce—with lower turnover.
- • The express-pay solutions market is hopping. Branch, PayActiv, DailyPay, and Even are all competing for your business right now, which means flexible features and affordable price points.
Source: Aite Group 2017 Impact Report
Better expense management
An Ignite Spot accountant recently advised his customer to try a new expense-management solution, and the company cut their corporate spending by 15% almost immediately. You want to empower your people to spend what they need to do their jobs well. But you also must monitor and rein in misguided or excess spending immediately. Until now, the only answer has been costly human oversight:
- • By far, Ignite Spot accountants recommend Divvy above other tools. Divvy’s site calls it “the #1 corporate card & expense management platform.” Other options include Concur, Expensify, and Zoho Expense.
Many of today’s technological tools cut business costs overnight. Savings like this affect your cash flow immediately, putting more wiggle room in your schedule and budget for more wealth-building activities.