Five tips for improving your payment processing system

Anything that can be done to streamline operations helps boost the productivity and profitability of your staffing agency. For example, if your payroll payment process is slow, clunky, overly complicated and regularly taking up too much valuable time to implement, it will adversely affect your clients, workers and the efficiency of your own people. From payroll funding services to staffing software, there are a number of existing solutions that can help you get more out of this important area.

  • Consolidate pay cycles. Do you pay management staff on a biweekly schedule and hourly workers every week? These traditional pay cycles might meet the expectations of employees, but they create twice the hassles and double the opportunity for errors. Consider consolidating pay periods to increase efficiency and cut the time spent on the payroll process.
  • Switch to electronic payment services. Direct deposit and payroll prepaid cards are quick, easy and efficient ways to administer payroll. Whether or not an employee has a savings or checking account, payment can be made easily and cost effectively.
  • Automate payroll activities. The best staffing software enables firms to end the manual tedium by fully automating most of the duties involved in payroll administration. Everything from creating job orders to direct deposit of funds can be accomplished with a few clicks. Top-quality staffing software easily handles deductions, garnishments, payroll taxes and other onerous tasks, allowing you and your people to focus time and attention on doing what you do best — recruiting top talent, boosting sales and serving the staffing needs of your clients.
  • Take a critical look at low-margin clients. This isn’t to say you should automatically turn down less-profitable work, but it’s worth careful bottom-line scrutiny. Sometimes the least profitable accounts can cost the most effort. Figure out how much time must be put into administering payroll for those borderline clients. If they’re among your easiest clients to service, do nothing. But don’t let those low-margin clients be among your most time consuming. The good news is that, as the economy steadily improves, you should be feeling more confident than you have over the last several years in your ability to turn down work that might be barely profitable and, quite frankly, not worth the effort.
  • Consider using a payroll funding Cash flow is a consistent problem for staffing agencies of al sizes. Your clients might not pay for 30 or 60 days or longer, but you can’t wait that long to pay employees. A payroll funding company gives you a short-term cash cushion with ready access to the working capital that’s critical for your operation. It will let you smoothly ride out the constantly changing tides of client demand, to ramp up or scale back to reflect current realities and meet your responsibilities to employees and clients alike.

Do you have additional tips for reducing the time and hassles of payroll administration? Have you tailored your payroll processing system to get things done more efficiently? If so, tell us about it. We’d love to hear from you.

 

As a full-service payroll funding, invoicing, payroll taxes and credit monitoring resource, TemPay enables staffing agencies to focus on growing their businesses.