Recent conversations about the U.S. Department of Labor's newly enacted overtime rule have made it clear to the Creative Workforce Solutions team that many organizations—particularly smaller ones—don't have clear processes around payroll actions, approvals, and recordkeeping.

More often than not, a manager sends an email to the designated "payroll person," instructing them to give (insert name here) a raise, bonus, title change, etc. The rules can vary by the state your employees are paid in and the type of organization you're in, as regulations are different for nonprofits and publicly traded companies, but even if you're not legally required to keep a clear approval trail, it's good business.

So what's really needed?

Properly documenting personnel changes with clear approvals and a paper trial is critical. If you're audited or an employee brings an action against the organization, an email isn't enough.

Every time a person is hired or terminated, or there is a change to their employment status or pay, a properly completed and approved personnel action form must be placed in their file.

But what's the best way to do it?

For companies that are tracking personnel changes using personnel action forms (PAFs) or interactive processes, the paperwork and follow-up can be overwhelming. (However, trying to re-create these documents after the fact is even worse.)

Most of these forms or links are still being forwarded through the approval hierarchy by email, though, so they have a tendency to sit in inboxes for weeks without a response. As a result, the payroll action often happens without a signed form, missing the point of creating the process in the first place.

At Creative Workforce Solutions (CWS) HR, we believe the best way to keep processes moving forward is with the help of automation and transparency.

That’s why, after thinking about how PAFs would be managed in a perfect world,we worked with our sister company CWS Software to create DataEnvoy. Take a look at how it's purpose-built to easily track personnel changes as well as provide visibility throughout the approval process.

Whether you automate or not, you need a process.

Reach out to Sue Brocaglia at Creative Workforce Solutions to look at your current payroll and personnel approval processes and seek opportunities to streamline them. Stay compliant with minimal friction—we're here to help.