‘If they’re able to automate or outsource just some of these daily tasks, they might find themselves with more time to focus on strategic, high-impact decisions’
Small businesses in Canada are spending an average of 21 hours per week managing data across various systems, according to ADP Canada.
This time drain is significantly hampering their ability to grow, says Mohamed Basma, general manager of small business services at the company.
“Small business owners wear many hats to ensure the survival of their business,” he tells Canadian HR Reporter via email.
He notes that small businesses have to spend time on the daily administrative tasks, ensure they are compliant with all existing local and federal laws and procedures, and handle HR management.
“From hire to retire, you must handle things like onboarding and severance. You’re in charge of crucial operations like performance management and career development,” says Basma.
Balancing taxes and compliance regulations across borders requires state of the art tech – with any mistakes or shortcomings leaving organizations open to hefty fines, according to a previous report.
Administrative tasks stalling business growth
The heavy administrative load is pulling business owners away from core growth activities, says the ADP general manager.
Citing a pizza restaurant owner as an example, he notes: “If he or she is doing all of these daily administrative or compliance tasks, it can be difficult to find the time to propel their business forward.
“You’re spending time on those tasks instead of sourcing valuable ingredients from the most trusted supply chains or making sure your employees are trained to provide first-class customer service. You might not be able to spend any time on marketing to make sure people keep coming to your restaurant.”
Automation can help, says Basma.
“If they’re able to automate or outsource just some of these daily tasks, they might find themselves with more time to focus on the strategic, high-impact decisions that can drive their business forward.”
Payroll accuracy helps productivity and reduces liability, according to one expert from UKG.
What are the advantages of an efficient payroll system?
Implementing an efficient payroll system benefits both the business and its employees, says Basma.
“Having an efficient payroll system for your business and workforce can help keep your employees humming, happy and retained. Employees are getting paid on time, their time tracking is super easy and accurate, their tax forms are ready when they need them,” he says.
In addition to supporting employee satisfaction, technology can help ensure compliance and reduce financial risks.
“If you’re doing payroll manually, you might be more likely to provide the wrong tax information or the wrong remittance. Mistakes like this can be extremely costly, especially for a small business,” says Basma. “An efficient payroll and HR system can really help streamline your recordkeeping and compliance.”
Previously, the Saskatchewan Health Authority (SHA) faced significant criticism in recent months due to payroll system failures that affected healthcare workers across the province.
