Create a culture that means business™
Company culture should not be overlooked. If retaining employees and having a reputable image is important to a brand, then maintaining a great company culture is critical. A great company culture breeds satisfied and engaged employees. However, it requires many elements to make it work, including company vision, values, communication, work environment and management style to name a few. One element that is consistently overlooked however, is actually the core of company culture – a vital department that ensures the day to day running of the company. This is payroll.
Payroll may not be the obvious contributor, but it is nonetheless crucial in playing a vital role for employee engagement in company culture. According to a study by Spherion, employees said their top concerns during their job search would be their experience in the hiring process, the number of perks, programs and benefits a company offers to help workers with work-life balance and their connection with a company’s culture and values. This means a good payroll team is necessary to cater to these concerns – benefits, perks and correct compensation is a core responsibility of the payroll team.
Correct compensation and a good work-life balance is particularly crucial for those with families, and recurring payroll errors can be a cause for concern for employees. In fact, a recent survey from found that 49% of American workers will start a new job search after experiencing just two payroll errors. This shows just how much employees value an attentive payroll team – they are far more than the team that hands them their pay checks. Here’s how payroll directly contributes to a positive company culture.
It Builds Reputation
A company’s reputation is reliant on its stability and security. A trustworthy, reputable and qualified payroll team prevents fraud, maintains compliance and submits critical documentation to strict deadlines. This is vital for building a good reputation with the public; negative press or simply negative word of mouth can be harmful. This is not something current employees want to be involved in, and prospective candidates will be put off.
By ensuring payroll processes are managed well and security is taken seriously, there’s less chance for any errors or suspicious activity to occur, meaning a better company reputation is upheld.
It Increases Employee Engagement
Being paid correctly and on time is essential. If employees are consistently paid incorrectly or insufficiently, they will feel undervalued and less inclined to be engaged with their role. Late pay checks and missing payments can also lead to them losing faith in their company and question if something bigger is happening financially behind the scenes. These are two great motivators for an employee to decide to make a move.
A reliable payroll team that communicates well and consistently pays employees correctly means teams have confidence that they are being reimbursed as expected. It is also beneficial for employees to know that any queries they have will be dealt with swiftly.
Having good faith in a company can mean boosted morale and increased engagement from employees. It should be a given, but if payroll isn’t being done correctly, why should employees go the extra mile?
According to a study by Robert Half, 46% of professionals feel they are underpaid at their jobs. Pay is compensation – employees work to get paid, no matter how much they value their role. They want recognition for the work they do every day, and their payslip compensates this. Employees who are compensated for their extra effort or new skills feel valued and respected.
In addition, flexible payroll means your staff are compensated correctly in-line with their performance as a whole. A performance-based pay model means your employees get compensated for their commission and target-based bonuses, meaning employees are satisfied that their pay is 100% accurate.
Encourages Employee Progression
Progression is vital for employees looking to stay with a company long term. They want to progress within the team, building on their current skillset and gaining promotions. Success is built on employee recognition and a great way to recognize an employee’s achievement is with compensated pay, company benefits, and frequent social and monetary recognition.
Better Use of Resources
Managing employees’ pay is a time-consuming task. By having a reliable payroll team on your side, these time-consuming tasks can be delegated, allowing for a better use of resources. With a great selection of HR and payroll software available, companies can benefit from increased time savings, management and reporting.
Employees value ease of accessibility. By allowing them to easily access current and historical payslips in one place with mobile apps, employees have effortless access to their pay information. This minimises the need for employees to go to their payroll team for information and filter though mounds of paperwork when requested. We live in a digital world, and it’s important to provide digital avenues for employees – providing mobile app accessibility to HR programs leads to a better payroll and employee experience.
It is clear payroll teams are key contributors to a positive company culture. Without a good payroll team on your side, businesses face the threat of a bad reputation, minimal employee engagement and high employee turnover. So, the question is, have you invested in your business’s payroll?