Top 5 Payroll Challenges faced by HR Professionals in MNC

Payroll Challenges

As CEOs, CHROs, and CFOs indulge in the G3 matrix of forming a better company culture; payroll is becoming more important to tackle. Calculating salaries, managing incentives, and reducing deductions for a large number isn’t easy without errors. Manually writing off salaries and dues is prone to payroll challenges. If not met and addressed on time, these hurdles will turn into payroll horrors in no time. 

To prevent bigger problems from payroll activities, it’s best to trust the uKnowva payroll management system. This tool helps CHROs and HR leaders solve common and unwanted payroll errors. 

If you’re new to HR and payroll, refer to this blog post to enrich your knowledge. Know how many of these payroll troubles are faced by today’s HR leaders in leading MNCs. 

After this knowledge, your stance and take on emerging payroll technologies will be clear and concise. Using that knowledge, you improve the skill set and approach to the modern payroll solution available at budget-friendly prices.

The top 5 Payroll Challenges Faced by HR Professionals in the MNCs are:

Miscalculations and other human errors.

That’s the most common error and challenge in the payroll activities by HR professionals in growing MNCs. People are prone to fatigue, bias, subjectiveness, and other issues when they conduct payroll manually. 

This leads to miscalculations, misplacements, and mismanagement of salaries or total remuneration to be paid. As a result, HRs end up either overpaying or underpaying employees. 

This causes a bad reputation internally for the firm. Employees do not trust the payroll and HR for their salaries. There are chances that many employees might think to depart from the firm if such a payroll error occurs even once. 

You have to note that salary and compensation are the two biggest motivators for employees in a country like India. And if there is any payroll error related to miscalculations or delays, employees would be ready to switch more than once.

The best solution here would be to trust the uKnowva payroll management software. It eliminates human error to a great level. 

Non-compliance and penalties are attached to unprofessional behaviour.

Manual payroll activities must be carried out in tandem with taxation and legislative laws of the state and country. Faltering in the same will put the employer or the company in trouble. 

They would be liable to pay penalties for not abiding by the statutory laws. And if salaries and tax deductions are not as per the laws, employees find it hard to file income tax returns properly. 

This, by and large, impacts the PF contribution, TDS deduction, ESI, and other benefits an employee is entitled to. With recurring payroll challenges like these, companies will be banned from operating by the state’s law. 

The best payroll solution here is to use the automated payroll management system. Let admins and developers automate the compliance work in the system. They can integrate the software with government websites to stay updated. 

These updates are further associated with the payroll activities triggered at a scheduled time. Therefore, every salary calculation then will be according to the changing tax and compliance laws. 

Time or technical lags while sending salaries in bulk. 

Another common error among leading and emerging MNCs HR professionals is not disbursing salaries on time. This is highly unprofessional behaviour, often cushioned by excuses of technical errors.

Employees feel tongue-tied when these occur, but the reputation and internal branding of the firm deteriorates. If these challenges continue, employees no longer wish to work at such a firm.

They would not even recommend such a firm to their loved ones to work. Rather, they end up leaving strict and rude remarks after departing. To avoid this mishap, HR professionals and leaders must be disciplined. 

They have to roll out salaries on time without delays. Exceptional cases must be there. But it must not occur repeatedly. The most reliable payroll solution here is to use the automated system. 

For example, the uKnowva payroll system disburses every employee’s salary on time. Admins can schedule the date and time. The bank transactions are safe and secure on its server to send salaries to 100-1000 employees at once. 

Not taking entire employee productivity in the purview of their compensations. 

Your payroll activities must be smartened up. If not, it’s tough to calculate deserving compensation for each employee. Even to date, many HR leaders forget or let go of the holistic picture of their employees’ productivity while calculating their remuneration.

That is why employees often take their job roles lightly, knowing they are getting paid every month, despite their performances. But that practice has to be stopped. 

HR teams must use payroll software to counter these payroll challenges, backed with AI technologies. These software help HRs process a bigger picture of employee productivity. 

Each salary or remuneration will be more deserving to the employee. That is because their performance, project, and punctuality records are maintained in the system. There is no manipulation or bias. 

The system automatically records the data as the employee uses the network for everyday activities. Therefore, the HR person knows how well their particular employees are performing. 

The system adds bonuses to employees’ accounts if they are breaking records. Such bonus policies must be added in advance to the system. The entire calculation of the compensation based on the performances will be automatic. 

HR leaders supervise the salary information before finally sending it out. At least, with this strategy, an organisation can justify the cost of talent acquisition and development. 

Otherwise, payroll challenges like these can put the company’s finances in trouble. That majorly happens when the outcomes are unsatisfactory, yet the firm continues to pay employees at par. 

Too much dependency on redundant payroll activities. 

Another common payroll challenge or horror is a dependency on redundant payroll activities. That means HR leaders are not using modern technologies to automate the system. That could lead to other payroll errors, most of which are mentioned above. 

There could be too much dependency on excel sheets, paperback, or manually tracing each employee’s pay. That would also include wasting manual hours every day to check the current liabilities score. 

Instead, the uKnowva payroll system is the best solution here. It helps HR teams automate most of the repetitive payroll activities. These involve calculating salaries, bonuses, penalties, and deductions. 

The system rolls out compensations on time. It helps settle the full-and-final of departing employees without errors. 


Read the payroll challenges explained in detail above. There are solutions as well listed to tackle each such trouble when you’re executing daily payroll activities. 

With these modern solutions, HR leaders free their time and focus more on managing and developing talent as value creators.