"Informative, Interactive, Inspiring. The conference brings new ideas and insights about current issues in talent and HR management"
Join the seventh annual Talent Management Asia, Asia's leading HR strategy conference.
Register now for early-bird savings!
On 1 April 2017, the one-year grace period for compliance with the mandatory itemised payslips will end. Thankfully, the percentage of businesses issuing itemised payslips have increased from 74% in 2016 (before it became mandatory) to 95% this year.
Shockingly, according to Justlogin’s Itemised Payslip Compliance survey, 88% of the businesses not compliant yet are unaware of the fact that the grace period for itemised payslip compliance ends at the end of this month. Digging deeper, a majority of these businesses (67%) were running payroll manually, only 20% made use of software, while the remaining 13% outsourced the process.
As for businesses already issuing itemised payslips, while the majority (64%) are making use of software to issue them, 25% are still doing it manually, either by pen and paper, or using spreadsheets. The remaining 11% have outsourced the process.
The survey also found that after upgrading from manual processes to HR software, businesses experienced on average, more than 40% time savings in HR.
With more businesses getting familiar with Software-as-a-Service (SaaS) or Cloud- based
software solutions, the increase in software adoption can be fully attributed to the growth in adoption of cloud-based payroll software (from 12% in 2016 to 29% in 2017).
At the same time, the percentage of businesses running manual payroll processes had decreased by almost half (from 46% in 2016 to 27% in 2017). While on-premise software adoption remains stagnant at 33%.
Leading the way in running payroll on cloud-based HR software are SMEs, with 31% of SMEs using these software. However, the same percentage (31%) still run payroll manually, 30% make use of on-premise software, and 8% outsource the process.
Big enterprises lagged in terms of adopting cloud-based software, with only 23% using these systems. However, compared to SMEs, less big enterprises were still running payroll manually (20%). A majority (39%) make use of on-premise software, while the remaining 18% outsource the process.
Photo / 123RF