Analysis and Improvement of Payroll Systems Using Agile Methods to Achieve Efficiency and Fairness

Abstract

In today\'s dynamic business environment, the success of an organization hinges not only on the quality of its products or services but also on the efficiency and equity inherent in its employee payroll system. This research elucidates the imperative behind the transformation of corporate payroll systems in response to the rapid evolution of industry dynamics and the escalating complexity of employee requisites. The primary objective of this study is to conduct an in- depth analysis of the payroll system employed by PT Kefsone, a dynamically growing enterprise, with a specific emphasis on augmenting operational efficiency and instituting equitable compensation distribution practices. The comprehensive analysis encompasses an exploration of the evolving demands of the workforce, an evaluation of methodologies for performance assessment, and a critical review of remuneration structures and incentive policies. The findings of this research underscore the substantial impact that components affecting fairness and efficiency within PT Kefsone payroll system exert on workplace productivity, employee retention, and overall morale. Moreover, the study presents actionable recommendations for system enhancement, thoughtfully tailored to align with the company\'s requirements and the expectations of its workforce.

Introduction

Payroll management is a critical part of human resource management because it directly affects employee motivation, satisfaction, organizational productivity, and operational efficiency. Companies must continuously improve payroll systems to ensure fair compensation and smooth business operations. PT Kefsone, a growing company, recognized the need to evaluate and improve its payroll system to enhance efficiency, transparency, and fairness.

The study identified several problems in PT Kefsone’s existing payroll system, including inefficient salary calculations, unclear salary policies, and lack of transparency in salary increment criteria. To address these issues, the company implemented a computer-based payroll system integrated with a human resource management system and introduced a fairer salary policy based on objective factors such as employee performance and tenure.

The research used qualitative methods, including interviews with company management, and applied the Agile Development method for system improvement. Agile emphasizes collaboration, flexibility, iterative development, and responsiveness to changing user needs. The Agile process included planning, design, development, testing, deployment, review, and launch stages.

The implementation of Agile methods improved payroll system efficiency by speeding up payroll cycles, reducing administrative work, and enabling quick adaptation to policy or business changes. It also improved fairness through transparent performance evaluations and equitable compensation processes. Continuous employee involvement and feedback increased employee engagement and satisfaction.

The study concluded that Agile-based payroll system development creates a more efficient, transparent, fair, and responsive payroll environment. This positively impacts productivity, employee satisfaction, organizational performance, and continuous system improvement.

Conclusion

In conclusion, the research conducted on payroll system applications has demonstrated the substantial advantages of utilizing such applications in enhancing efficiency and fairness within a company\'s employee payroll management. Employing Agile methods for the analysis and improvement of payroll systems represents a significant shift in the realm of human resource management. It enables organizations to enhance the efficiency and equity of their employee payroll procedures by prioritizing adaptability, team collaboration, and ongoing iterations. This approach not only optimizes payroll processes but also contributes to fostering a more equitable and responsive work environment, ultimately benefiting both the organization and its employees.

References

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Copyright

Copyright © 2026 Yash Tiwari , Shivam Mishra. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.