The Role That Big Data Play In Benefiting Payroll In Business

Do you know there’s someone who plays the role of a tax collector in your company? If you know, good enough, if not, not an issue at all, as the tax collector in the company performs his/ her task with a different name or designation. Well, before I could tell you “who” that is, let me tell you “why” he/ she is called so.

As a normal phenomenon, there are times when a deficit is experienced by the government in revenues that are required to assist in meeting the expenses of the governmental infrastructure. And it is the tax collector’s tax collection that comes to the rescue and plays a significant role. However, the perplexity lies in the calculation and decision of how much to collect as there are continuous changes involved.

Now, coming back to the topic, I hope you were able to guess who the tax collector is, didn’t you? – The one who processes the payroll. Wondering why? Because it is he who processes payroll which concerns the company, employee as well as government compliance, while the tax collector similarly is considerate about the state, federal, as well as local governments. 

No wonder if you are inquisitive as to why am I discussing all this with you. But then, as we move ahead with the topic, I’m sure that you’ll be able to connect. And in order to move forward, Let’s just have a brief understanding of payroll, its difficulties, and Big Data.

What Is Payroll?

On a general note, payroll is understood from three different perspectives. They are – 

  • The amount that is paid to the employees for a particular period
  • The list and the information of the employees who receive compensation 
  • The very process right from gathering information, calculation, and disbursement of the salary or wages, including the tax.

Payroll processing is an essential function for any organization that entails insights and knowledge about the prevailing regulations along with tax details to make sure that each employee is paid the right remuneration after withholding and filing the compliances in the most organized manner.

What Makes Payroll Difficult?

Payroll management is considered to be a painstaking part of the HR manager. Because even a tiny mistake is sure to bring damages that could be too expensive. The challenges or the difficulties included in payroll processing are:

  • Manual errors
  • Non-compliance to the statutory laws
  • Too much of effort and time is consumed.
  • Accurate and real-time reports
  • Ensuring data safety
  • Maintaining the cost, etc.

And thus, many companies prefer to switch from in-house payroll to payroll outsourcing companies or wish to implement human resource software integrated with payroll software that performs payroll processing and other HR-related tasks for efficient and effective outcomes.

What Is Big Data?

A comparatively new term that defines the massive amount of data that deluges the business every day is called Big Data. Nevertheless, it’s not just the volume of a particular data, but the way the companies describe or interpret it is critical. It can be evaluated with the use of AI in order to develop an understanding of business strategies and decisions.

Does it sound complicated? Well, let’s try to simplify the sentence. Big data is nothing but a combo of almost every process as well as tools that relate to the utilization and the management of incredibly vast sets of data. The emergence of knowing the growing trends and preferences among the existing large amount of data is what influenced and led to the development of the approach. And big data’s operation is defined by the four Vs – namely, velocity, volume, velocity, and variety.

Is There A Role That Big Data Could Play In Payroll Processing?

Earlier in the article, I did mention that as tiny as the mistake may be, there is no way out from the consequences. And that’s where you’ll find the assistance of Big data, as it’s competent to monitor changes that could help businesses and HR departments recognize opportunities for improvement and gain substantial incomes.

The payroll department’s analytic prediction and the interpretation of the data are sure to provide the annual prognosis or estimation that helps in managing the budget or the cash movement. The interrelation between the performance and compensation aspect is shown by payroll and provides insights for retaining employees. According to research, Fortune 1000 are gaining about 48.4% measurable results as an outcome of the ventures of big data. 

Benefits Of Employing Big Data For Payroll 

Considering the meaning and the current scope of big data, there might be a question of how it contributes to my business? I have listed out the following pointers, which, when understood, can act as driving factors to adapt to big data and get the best out of it. 

Maintaining Records

Evidently, the term payroll, by itself (irrelevant of which perspective you wish to consider), denotes the handling of quite a large amount of data. And in that case, the storage of the same is sure to pose another concern. However, the availability of cloud storage and computing storage facilities, that allows you to store any amount of data and also provide easy access as and when required.  

Right Talent Acquisition  

There is an increase in the battle among many organizations for the right and talented candidate. You may wonder asking, “what has payroll got to do with big data? Is not recruiting a totally different operation? But where does Big data come into the picture? 

Among many scopes of big data, the assistance it offers the entrepreneurs in improvising the quality of hire is indeed predominant. How? Big data gathers the information from probing factors such as clients survey, workforce feedback, etc., to forge strategies for recruitment.

Enhances Decision Making

The ultimate purpose of any and the entire process that any organization undertakes is to enable a smooth flow as well as effective results. And what is any action without “decision making?The concern is no more as to whether the desired end results are met earlier or later. Yet, the performance’s decision illustrates an eminent part of the entire managerial decision-making procedure. How about big data helping you to make the right decisions?

Big data’s practical applications and scope are too useful for a company’s strategies, especially when it comes to decision making. Big data analytics in making decisions going forward to an extent beyond what humans can to aid and to create possibilities that otherwise wouldn’t have been possible.  

Address And Rectify The Errors

Big data is capable of giving a new and detailed outlook to the managers, even on the tiniest aspect of the payroll processing. Added to it, it can also address the errors and other issues that may get the whole process on hold. This addressing includes the compliance errors, skipped time limit, etc., and are capable enough to identify where these errors have occurred. 

Thus, big data contributes to the enhancement of the payroll process and its infrastructure. Likewise, software solutions could be used throughout a weekly or monthly payout cycle to optimize payroll quality with greater consistency, providing productivity increases over the long and short term.

WorldWide Implications

Companies with a worldwide influence have considerably raised concerns regarding payroll information and, therefore, must cope with chaotic and uncertain regulatory environments. Big data instruments help internationally-interested organizations organize and synchronize the data they collect through their worldwide territories and then use that to establish and enforce a payroll solution globally.

New Perspective To The Old Concept 

Don’t we all look for something new or a change in our regular chores? Then why not businesses, when they are so very complicated? Big data technologies encourage the employees to think differently and have provided an opportunity to start exploring the best possible ways for the overall benefit. 

As a known fact, there are already many software and automation tools that revive the process, and no doubt, it is sure to continue. Why not take part in it? Thus, the more one wishes to enjoy, the more he should be willing to explore and evolve.


While attempting to leverage big data in a payroll framework, the primary concern is to make sure that the information is reliable and of fine standards. For companies that still use traditional or obsolete technologies and a fractured payroll system, this scenario represents a problem and will soon pose an existential threat.

Nonetheless, on the other side, operating integrated payroll operations on a structured and legitimate framework allows the data to be a consistent arbiter of facts. Thus, offering a precise vision of your budgets throughout all periods. And then onwards, enabling you to establish and re-define your payroll team and indeed the data it manages, both for now and in the future, as a company’s strategic asset. 

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