Payroll services and human resources (HR) are two distinct functions within a business. While payroll processing is concerned with employee compensation, human resources are primarily concerned with employee relations. However, there are instances where the two roles overlap and are frequently performed by the same person, particularly in a small business.

While this arrangement may appear to be advantageous on paper because it involves fewer employees to pay and a more integrated approach to company operations, it can lead to a slew of issues. A business owner must understand not only the differences in their functions and terminology but also how the two functions can collaborate to produce better results.

Automating HR processes is a small step that can have a large, positive ripple effect throughout an organization. But how do you streamline HR processes, reduce human error, and create repeatable protocols that your overburdened HR team can adhere to? Here are some tips to streamline HR Policies & Processes:

Payroll outsourcing services:

I don’t think there’s much debate about the importance of outsourcing human resources. You are in charge of employee payroll and tax filing, as well as employee benefits and health administration, legal compliance, file and record maintenance, and training and development oversight.

And, for many businesses, that’s just the tip of the iceberg. You can’t help but feel like the captain of the Titanic, heading straight for that iceberg.

So, how do you lighten the load?

Payroll Outsourcing services is a great way to accomplish this. There are two major benefits to outsourcing some of your HR tasks outside of the company:

Risk Management

Employment laws are constantly changing almost daily. It’s also extremely difficult to keep up with those changes. And there are severe penalties for failing to keep up with and comply with those changes. Payroll Outsourcing services provider companies hire people whose sole purpose is to do just that. They can not only keep you up to date on legal changes that affect your business, but they can also audit your processes regularly to ensure that everything is compliant and nothing has slipped through the cracks.

Cost Savings

The Human Resources function is not a revenue-generating department. As a result, it is simple for senior management to look at the bottom line and ask difficult questions about why HR spends so much money while bringing in none. Outsourcing some of your tasks can be much less expensive than doing them in-house, making your department appear to be less of a drain on the bottom line.

Payroll Processing

Speaking of payroll processing, automating this function can provide you with several advantages, including more accurate calculations, less time spent processing and preparing payments, and easier record keeping with digital files rather than physical ones.

Onboarding and recruitment

Recruiting and onboarding are two of the most important functions that HR departments perform. They are, however, two of the most difficult, requiring a large amount of paperwork, information processing, and filing.

Automating the recruitment and onboarding processes not only improves and streamlines the experience but also reduces the risk of human error, prevents the loss of important paperwork, and increases the visibility of new-hire status across departments.

Tracking and managing your time

Hours are typically not logged efficiently in most most organizations and they are often also tracked manually. Of course, this increases the likelihood of inaccurate records, however inadvertent. A digital time tracking solution will make life easier for employees, who will no longer have to struggle to remember their time, as well as for HR employees, who will be able to ensure that payroll is accurate.


Offboarding employees can be as difficult and time-consuming as onboarding them.

Offboarding procedures frequently include credential revocation, identification collection, an exit interview, and other paperwork. You can help ensure that all of the right boxes are checked by automating these processes, even if emotions are running high. As for HR personnel, they can rest assured that payroll is correct.

 Benefits of Payroll Services for Streamlining HR Policies & Procedures

Human resources are in charge of all aspects of employee relations. Tasks vary by company but typically include staffing and business operations. HR policies assist in keeping employees on the same page and streamlining the day-to-day operations of the business. Employees may become confused about the company’s culture and expectations if these policies are not in place, resulting in a chaotic work environment.

Recruitment and Hiring

A key HR function is recruiting and hiring new employees. Employees are informed of the company’s expectations and procedures by human resources policies that include what goes into the recruitment and selection process. This is especially useful if an employee wishes to refer a job candidate to your company.

Promotions and Rehires

The company’s stance on rehires and promotions is explained in human resources policies. This includes the criteria for rehiring a terminated employee as well as the process for moving up in the company.

Employees who leave the company in good standing are usually eligible for rehire, and employees who perform satisfactorily or above expectations are usually promoted. These policies specify what employees must do to be considered in these situations.

Development and Training

HR policies include provisions for training and professional development to ensure that employees are aware of the resources available to them. These policies also help to reassure new employees and those who have been given additional responsibilities that help is available.

Employee Concerns

HR policies educate employees on how to deal with problems at work. Employees want to know that they can confide in someone about their concerns, whether they are about coworkers, management, or the work itself. The policy specifies the chain of command in handling problems, such as whether an employee should approach her supervisor or manager first or go directly to HR.

Company Policies

Human resource policy manuals outline internal policies as well as the company’s code of ethics. Dress code, professionalism, vacation time, personal and sick time, holidays, workplace safety, discrimination, and how to interact with coworkers and customers are all covered. Ethics is especially important because it varies from person to person.

Employees will know what is expected of them if you outline what constitutes good behavior in your company.

Application of Labor Law

Labor laws are extensive and complicated. Human resources policies may include posting a law breakdown so that employees understand how the laws apply to them. Minimum wage, overtime, record-keeping, employee benefits, and breaks policies clarify what employees are entitled to and how they can help ensure timely paychecks by submitting time cards to the payroll department on time.

Termination Reasons

HR policies specify the grounds for terminating an employee, and explaining the grounds for termination protects the company from retaliation if an employee was fired for violating clearly stated policies in the company manual.

What Role Do HR Policies & Procedures Play In Business?

Proper HR policies and procedures play a significant role in a company’s overall success.

Structure of the Organization

HR policies and procedures establish guidelines for employer-employee relationships, including information on acceptable norms of behavior, work schedules, health and safety precautions, employment laws, conflict resolution, and disciplinary measures. Employee rights, duties, and responsibilities policies foster a suitable working environment and healthy workplace relationships. The distribution of policies and procedures to employees reduces the number of times management sends memos and notices about employee issues.

Legal Concerns

HR policies and procedures that are following applicable laws and regulations protect an organisation from corporate liability and employee lawsuits. Employees’ rights and responsibilities are outlined in clearly written HR policies and procedures. Employees, for example, are informed of relevant laws prohibiting workplace discrimination, such as Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, Title II of the Genetic Information Nondiscrimination Act, and Titles I and V of the Americans with Disabilities Act.

Guide to Supervision

HR policies and procedures provide supervisors with reference material for employment issues in the organisation, which streamlines workflow. A supervisor, for example, understands the scope of his authority and can guide new and existing employees if any questions arise during their employment. HR managers and specialists use policies and procedures to maintain workplace discipline. The disciplinary procedures in place protect the administration from accusations of bias.


HR policies and procedures help an organisation establish and maintain consistent workplace practises. Unpredictability in employee matters such as benefits, schedules, and responsibilities increases the risk of employee dissatisfaction and may lead to employee conflicts. Consistent application of policies and procedures communicates the organization’s principles to employees and other stakeholders.

How TopSource Worldwide can help?

With streamlined HR processes, you’ll free up time and resources for both your company’s employees and, of course, your HR specialists. After all, an HR department’s time is spent processing employee information and answering questions, while HR specialists spend an average of 40% of their time on administrative tasks such as data entry.

TopSource Worldwide allows you to easily create workflows for repetitive HR tasks. For a more in-depth look at how TopSource can help you streamline and automate HR processes, feel free to contact us today!

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Published On: December 21st, 2021Last Updated: June 16th, 2022

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About the Author: Sachin Disa

Sachin heads the India Payroll business unit and is responsible for global sales into India, India domestic sales and delivery, and local finance support in India. Sachin has over 17 years of experience with the company, his previous roles include head of UK payroll operations, head of accounting support services, head of sales in India and VP of finance.