56% of VSE-SME executives believe that the climate of uncertainty in terms of economic policy has a strong negative impact on their company’s activity, according to the 4th quarter 2024 barometer published by Bpifrance Le Lab (Data from the survey conducted among business leaders (IMV and SMEs) in October 2024).Reduced investments, postponed hiring, worsening cash flow are all reasons to be more attentive than ever to optimizing your organization’s costs. However, with better management of payroll and calendars there could be a lot of savings and financial help, assures Angélique Acosta, associate executive director of spartes, a human resources consultancy.
First potential source: incorrect pay slips to the detriment of the company. «72% of pay slips contain one or more errors», underlines the manager. in most cases these are configuration errors that result in additional contributions for the employer. According to estimates from the Spartes cabinet, this would be around 3,000 euros per year per employee. Very small anomalies in a larger company, multiplied by several hundred employees, can add up to large volumes.
How can payroll management errors impact the financial health of small and medium enterprises?
Interview: Navigating Economic Uncertainty and Cost Optimization in SMEs
Time.news Editor: Welcome, Angélique Acosta, associate executive director of Spartes.Thank you for joining us today.With recent findings from the Bpifrance Le Lab revealing that 56% of VSE-SME executives feel the economic policy’s uncertainty is negatively impacting their businesses, what are the most pressing concerns for these leaders?
Angélique Acosta: Thank you for having me.The current climate of uncertainty is indeed a notable concern for many SMEs. The executives I speak with are particularly worried about reduced investments,postponed hiring,and worsening cash flow. this habitat understandably drives them to look for ways to optimize their operational costs to maintain financial health.
Time.news Editor: That makes sense. Your survey indicates that many companies might be overlooking one critical source of savings. Can you elaborate on this?
Angélique Acosta: Absolutely. One of the most overlooked areas involves payroll management. A staggering 72% of pay slips contain at least one error, leading to unnecessary financial strain on companies. These are mostly configuration errors that can inadvertently result in additional contributions for employers.As an exmaple, this could amount to approximately €3,000 per year for each employee.In larger organizations, even minor errors can accumulate into significant financial losses.
Time.news Editor: That’s quite alarming. What practical steps can VSE-SME executives take to mitigate these payroll errors?
Angélique Acosta: First and foremost, I recommend that companies conduct a thorough audit of their payroll systems. Ensuring the accuracy of pay slips should be a priority. Organizations can also implement regular training for HR personnel to minimize errors in payroll processing. Utilizing advanced payroll software that supports automation and error-checking can greatly enhance accuracy and efficiency.
Time.news Editor: These are excellent suggestions. In light of these issues, how crucial is it for companies to focus on optimizing other operational areas as well?
Angélique Acosta: It’s crucial.Beyond payroll management, companies should scrutinize their entire operation. This includes reviewing suppliers for better rates, optimizing inventory management, and assessing marketing spend. Each of these areas can contribute to reducing costs. The goal is to build a robust and agile institution that can weather economic uncertainties.
Time.news Editor: In your experience working with SMEs,what has been the most common misconception regarding cost optimization?
Angélique Acosta: Many executives believe that cost-cutting is synonymous with reducing the workforce or slashing budgets. Though, that’s not always the case. Smart cost optimization can also involve strategic investment in technology and resources that drive growth and efficiency. The focus should be on maximizing the return on investment and ensuring every euro spent contributes to the company’s overall objectives.
Time.news Editor: Thank you for these insights, Angélique. As we wrap up,what final thoughts would you like to share with our readers?
Angélique Acosta: I’d encourage leaders to embrace a proactive approach to managing uncertainties. Cost optimization is not just about reducing expenditures; it’s about understanding and adapting business processes to suit the current economic landscape.By paying close attention to payroll accuracy and seeking efficiencies across the board,SMEs can emerge more robust from challenging times.
Time.news Editor: Thank you so much for your valuable insights today, Angélique. We hope to see positive changes in the landscape of SMEs as they navigate these economic challenges.
Angélique Acosta: Thank you for having me. I look forward to seeing how businesses adapt and thrive in this evolving environment!