Let’s be honest, the pharmaceutical industry is under immense pressure to perform better. This single industry is always on its toes to invent new solutions, offer extraordinary service, and achieve all this within time.
In between all this, do you think there’s time left for payroll and HR?
Undoubtedly, payroll processes are somewhere lost in other important activities. As a result, often employees are misguided, retention rates reduce, and employee satisfaction trajectory reveals a horrible picture.
We have discussed the issues of payroll in the following sections. We have also discussed how payroll services for pharmaceutical industry can mitigate these risks and issues.
Payroll Issues Faced By Pharmaceutical Companies
Not only pharma, but this is an issue faced by multiple industries alike. Every country has set guidelines for payroll compliance. For instance, TDS, PPF, and other deductions including payroll requirements.
When a pharma organization fails to accomplish all these things, non-compliance penalties are imposed. And it is not hard to fall for non-compliance. Sometimes, the simplest yet gravest reason for non-compliance is human calculation errors.
2. High Costs
Since a pharma organization needs to manage a lot of other budgets and costs, payroll system and HR activities are easily sidelined. This means it is highly likely that the payroll system or technology utilized by the pharmaceutical organization is outdated.
And when that happens, mistakes automatically find a pathway. Then, the processing becomes incompetent and highly erroneous.
3. Taxation Issues
Indian taxation requirements are not simple. For that matter, taxation requirements across the globe are not simple. The factor that adds to the complexity of taxation is the frequently changing rules and updates in the tax environment.
When an organization fails to stay updated with these changes, taxation errors are made. In the pharmaceutical industry particularly, there are so many other important responsibilities. Hence, it is not hard to overlook tax environment fluctuations.
4. Data Management
Accuracy in data is another essential aspect of payroll processing. When processing payroll, the HR team needs to dispatch the right salaries at the right time. Without accuracy, the errors reduce the trust of the employees in the organization.
Further, calibrating old data with new data is also necessary. Accuracy in this calibration helps in workflows like appraisals, promotions, bonuses, etc.
5. Data Security
Did you know that 27% of businesses have to face payroll fraud?
Why does this happen?
Due to the poor security of employee data.
Every organization holds personally identified information of the employees. This information is extremely valuable. When stolen, it can cause a lot of harm to the employee as well as the organization.
In effect, the harm is not just monetary, it is reputational.
Solution: Payroll Outsourcing
The best payroll solution for pharmaceutical industry is payroll outsourcing. Payroll outsourcing is now preferred by an array of organizations that require accuracy in payroll but still wishes to control the costs of this activity.
Other than controlling costs, payroll processing in a pharma organization is an added hectic task. Getting rid of the responsibility helps the organization provide optimum focus to its employees’ growth and the company’s goals.
If you are a pharmaceutical organization facing issues in payroll processing, reach out to Paysquare for further help. Paysquare is an organization that offers accurate, quality payroll services for pharmaceutical industry. With our experience and industry knowledge, we can help you streamline your payroll workflows.