How to Efficiently Handle Payroll with Complex Long Service Payment in Retail?

There are many part-time employees in the retail industry, with high turnover and high frequency of pay. The remuneration items include statutory rights and interests such as holiday pay and sickness allowance, as well as employee benefits such as attendance bonus, long-term service payment, and overtime work allowance. Calculating pay is cumbersome and time-consuming.

Salary calculation has always been a pain point faced by the retail industry because it involves multiple variables and the salary composition is complex.When it comes to salary services related to attendance and holidays such as attendance bonus and ot pay, it is necessary to record and check clock-in/out, attendance data and holiday data on a daily basis. Making it even more difficult to handle payroll accurately.

This article will discuss how to efficiently handle payroll in the retail industry, and see the efficient solution that Workstem’s one-stop human resources management system can provide you!

How is salary typically structured in retail?

Salary usually consists of basic salary , attendance bonus, holiday pay and other components. Resigning employees are entitled to payment in lieu of notice and long service payment. Basic salary is an employee’s fixed income, while attendance bonus, holiday pay, payment in lieu of notice and long-term service payment are non-fixed incomes, and the calculation methods are complex and diverse in retail industry salary. What are the pain points?

• Various calculation methods and high complexity

Since employee types include full-time employees and part-time employees, the formulas, proportions, and gradient settings for calculating attendance bonuses and holiday pay will also be different.

• The data is complex and accuracy is difficult to guarantee

Attendance bonus and holiday pay involve a large amount of data, such as attendance data and holiday data. These data are overwhelming, and their accuracy directly affects the calculation results of salary.

• Calculating manually or using traditional methods is inefficient

Calculating salary using traditional methods such as manual or Excel will undoubtedly require multiple calculations and checks. If the calculation is incorrect, the form will need to be modified repeatedly, which is time-consuming and labor-intensive. More seriously, it will affect the interests of employees and may lead to unnecessary labor disputes.

Have you also encountered the above problems? How can we manage payroll accurately, efficiently and quickly?

How to manage payroll in the retail industry?

Let’s take a look at the following retail industry cases. Workstem will give you an in-depth understanding of salary calculation in the retail industry.

The client is a clothing store. For different positions, they receive different attendance bonuses and holiday pay. Employees with monthly salaries are entitled to pay in lieu of notice and long service pay when they leave.

• Customer’s core characteristic business– Attendance bonus

• Customer’s core characteristic business – Payment in lieu of notice

• Customer’s core characteristic business – long service payment

• Customer’s core characteristic business – public and statutory holiday pay

The customer needs to calculate the attendance bonus and holiday pay that employees working in different departments and positions should receive in the current month according to the above business logic. As a retail industry with high staff turnover, employees who leave enjoy payment in lieu of notice andlongService fee.

If there is only this one position, HR may be able to control such a large-scale salary calculation, but if there are multiple positions and multiple departments, and the salary calculation standards are different, it will be a huge workload!

Referring to the above cases,In order to reduce errors in salary calculations and improve work efficiency, clothing stores can summarize some methods to efficiently manage payroll.. Here are some suggestions:

• Establish clear attendance bonuses, holiday pay,payment in lieu of notice and long service payment policy

Establishing clear policies can help employees understand attendance bonus,holiday salary，payment in lieu of notice and long service payment calculation methods and standards reduce misunderstandings and disputes.attendance bonus, holiday pay,payment in lieu of notice and long-term service payment.The policy should include calculation methods, proportions, settlement times, etc., such as the different attendance bonus, holiday pay, payment in lieu of notice and long service payment calculation.

• Develop clear attendance bonus, holiday pay, payment in lieu of notice and long service payment calculation formula

When it is related to attendance bonus and OT pay, it is necessary to record and check clock-in/out, attendance data and holiday data on a daily basis. The specific circumstances and business requirements of the retail industry need to be taken into account when determining the calculation method. Companies should develop clear calculation formulas based on their own circumstances and communicate them to employees to ensure that employees understand their sources of income.

• Use professional automation tools

A sound data collection and management mechanism is a prerequisite for ensuring accurate salary calculations. The use of automated tools can greatly improve the accuracy and efficiency of salary calculations. For example, the Workstem human resources management system can automatically manage attendance and holidays, and instantly record lateness, early departure, absence and other abnormal attendance status. Mobile App application/approval, high efficiency, fast working hours statistics，Automatically integrate all data to help the retail industry calculate automaticallyAttendance bonus, holiday pay, payment in lieu of notice and long service payment, reduce manual errors and save time.

Great recommendation! Workstem improves payroll efficiency.

Workstem one-stop human resources management system Support automatic obtain the number of remaining annual leave days when an employee resigns, customize the calculation method of annual leave pay, ADW calculation, settlement time, etc., and use the powerful AI calculation engine to calculate according to the annual leave pay calculation formula, and automatically compare salary data , ensure that the calculation of annual leave pay complies with company policies and standards, and pays out efficiently.

In addition to calculating annual leave pay, the Workstem system can also provides a full range of solutions to help the retail industry business management of other HR processes, such as Rostering、Attendance、Leave, MPF and tax return management, etc., help the retail industry can truly realize digital transformation and improve management efficiency and employee satisfaction.