To begin with, we need to understand: What is Payroll and why is it important?
A payroll is a company’s record of employees who are entitled to compensation against a fixed period of time or date. Along with the salary data, it also includes employees’ information related to attendance, position, leaves status, pay policy etc. Payroll processing involves calculating the actual net pay for every employee in the organization minus necessary deductions (Taxes, PF, Insurance Policies..etc) from gross salary.
Payroll processing is recognized as one of the most crucial and time-consuming administrative tasks which has to be taken care of with utmost attention. Hence, it’s necessary to understand the IMPORTANCE of it in terms of business:
– A company’s financial integrity depends on it
– It can be used to identify problems like employee turnover and absenteeism beforehand
– Protects your brand’s reputation by adhering to country’s labor laws and legislations
– Centralizes all employee’s crucial data in one place
– Altering the salary structure with on-going promotions and increments
Let’s learn how a GOOD Payroll Services Management System can impact company culture positively:
Use it as a medium to understand your business and employees better. It’s fair to say Payroll services affect every part of the business including Company Culture – by aiming to create a positive impact establishing trust and loyalty towards their employees. We’ll tell you HOW!
1. Digitalize To Implement Transparency
Today’s Payroll functioning has evolved to a point where HRIS allows employees to view their data online related to salary structure, monthly payslips, attendance and leaves status, policies and so on. Switching from manual HR processes to automated systems have developed a sense of transparency and accessibility among employees. Another way to go about it would be outsourcing HR Services to streamline and automate all processes including Payroll Processing.
2. It Boosts Employees’ Morale
An ill-managed payroll system is a BIG no when it comes to winning the trust of your employees – Not only that, it can also trigger them to switch jobs . Getting paid on time boosts an employee’s morale as it is a clear indication that they can rely on the organization when it comes to maintaining the financial ethics of the company.
3. Contributes Toward A Company’s Reputation
Payroll Processing is a critical time-consuming task that involves utmost caution, critical documentation, and strict deadlines. If done properly, it builds a company’s reputation in terms of stability and security. You can achieve the same by timely preventing frauds, adhering to laws and tax obligations, and reducing any chance of error. It not only helps you attract prospective candidates but also helps in employee retention.
4. It Fuels Employees Performance
An employee will only stick to a company if they take rewards and recognition seriously. Payroll plays an important role in enhancing employee experience with company benefits (Insurance, Pension, etc.) and flexible policies. Apart from that monetary recognition in the form of bonuses, promotions and increments are equally important to encourage them to perform better and progress within the company.
5. Increases Employee Engagement
With employee progression comes increasing employee engagement hence an effective payroll in place keeps them motivated. Make sure they don’t lose faith in the system so take preventative measures in order to save yourself from late/missing payments and laid-back payroll processing.