As one of the biggest expense items on the balance sheet, labor spend has become a focus for compliance-concerned executives.
Workforce Management is Critical to SOX Compliance
As cost accountability becomes a mounting preoccupation for SOX-focused executives, one of the biggest expense items on the income statement is firmly in their cross-hairs: labor. A survey of 224 public companies showed that organizations recognize the criticality of complying with SOX. Businesses with more than $5 billion in revenue are expected to spend an average of over $8M on SOX compliance initiatives in 2005.
The Challenge of Certifying Financial Statements
In highly distributed, complex or unionized labor environments, payroll management is far from straightforward and controls are often lax. The risk of mismanagement – and corresponding payroll inaccuracies – is real.
Inaccurate capture of employee hours, manual application of complex pay rules, and multiple data entry steps render payroll generation an error-prone process in many organizations.
- Time capture is handled by disparate time tracking systems and processes
- Manual touch points make the calculation and application of pay rules inconsistent throughout the organization
- Retroactive pay adjustments require significant manual intervention
The situation is exacerbated by little or no audit trail to account for how employees were paid for the time they worked. At the end of the fiscal year CEOs must authorize multibillion dollar payrolls based on inaccurate, manual processes with no visible audit trail. It's no wonder that executives feel anxiety towards SOX.
Workbrain Enterprise Workforce Management Helps Executives Comply with SOX
Workbrain solutions automate complex time and attendance processes to deliver accurate, transparent employee pay. SOX Compliance is supported by features such as:
- Full audit tracking of employee pay
- On-demand labor reporting
- 100% automation of an organization’s complex pay rules
- Accurate, automatic retroactive pay adjustments
- Workflow-enabled time sheet authorization processes
- Configurable Security Framework with 128-bit encryption to protect sensitive data
The same workforce management tools that ensure tight internal controls also create a competitive advantage for Workbrain customers by dramatically lowering operating expenses and improving workforce performance.
