It is true that payroll is not the only factor that contributes to happiness at work, but it is nonetheless one of the main ones. Whether it is the amount, the timing, the accuracy, the compliance… payroll has to respect a set of conditions to meet the needs and expectations of the employees. The slightest error can be a source of conflict. Conversely, an accurate payroll can promote employee happiness.
Find out in this article how payroll affects employee happiness at work and what are the key elements of an effective payroll.
Payroll & Employee Happiness: two related concepts
Recent studies have shown, 47%, or nearly half of respondents, cited pay as the primary source of motivation at work. In the context of the health crisis, well-being at work is at the forefront of everyone’s mind and financial well-being is a major contributor. With the arrival of Covid-19, many households have been impacted financially. According to figures from the U.K. Office of National Statistics (ONS), nearly 12.5 million people reported that their household was financially affected due to the coronavirus between March 20 and June 7, 2020.
Receiving one’s salary on time and without any errors during the Covid-19 period has been a relief for many employees. The financial well-being of employees must imperatively be a priority for human resources. It is one of the pillars of happiness at work.
The key elements of a good payroll
In order to ensure an accurate payroll, payroll managers must consider a multitude of factors. Discover the 3 pillars of effective payroll management:
Good payroll management involves compliance with payroll rules and standards. Payroll legislation is highly regulated, and it is essential for payroll managers to pay close attention to it. Payroll is also a function that is regularly reformed or updated. It is, therefore, necessary to regularly monitor the payroll in order to adapt it to any legal, conventional or internal change within the company (compliance with tax rates, social contribution rates, withholding tax, etc.). An automated payroll software will help you to integrate changes quickly and globally for all users concerned.
Who doesn’t look forward to their paycheck every month? Many of us do! And when it doesn’t meet our expectations, it can quickly lead to frustration and conflict. Every month, we need to pay bills, and many people organize their budget around payday. That’s why it is necessary for payroll to be accurate, precise and on time! It is also increasingly important to make payslips easier to read and understand. In France, since January 1, 2018, the payslip is generalised to all companies and has been simplified. To create a bond of trust with your employees, you can also offer them help to read the payslips. The goal? Familiarize your employees with payroll in order to avoid potential conflicts. In the digital age, a payroll software will allow you to calculate salaries with accuracy. It is also an excellent tool to provide your employees with a secure and accessible space for their payslips at any time.
Data security is a current and major issue. Personal data must be protected, even more so in a digitalised world. As for salary data, it is considered more sensitive and must be handled with care. You must ensure the security and confidentiality of your employees’ data and documents by respecting the relevant standards and complying with the rules such as GDPR.
How does payroll contribute to employee happiness?
Payroll has an impact on your company’s reputation. It is up to you to make sure that impact is positive. If your company has a reputation for paying employees on time, accurately and being available for any questions or comments, your employees are more likely to trust you.
Payroll is a powerful motivational lever. Your employees will be more motivated and engaged in their work and tasks if the payroll is accurate. It can be beneficial to set a specific day in the month (the 1st, 5th, or 25th of the month, for example) because it is an unchangeable variable that will make it easier for your employees to manage their budget.
Accessing payroll data at any time and being able to view and download your payslips easily from your computer or phone has become an indispensable asset in any business. The dematerialization of payslips has several advantages:
- Time savings by eliminating time-consuming tasks
- Storage and traceability
- Reduction of the ecological footprint
Flexibility is one of the HR trends of this year. Flexibility in the hours, in the way of working but also in the pay! Be flexible with your employees and show them that you trust them. With the complexities of today’s environment, your employees may need an advance on their salary or need to change their payday. Today, offering flexible compensation is not as complex as it used to be with all the tools HR has at its disposal to automate and track each employee’s payroll.
Managing employee payroll is not always an easy task as many factors must be taken into account. With the development of technology, there are now powerful tools that will save you precious time in each payroll cycle. You can now optimise your payroll by automating the processes and covering all these specificities.
This post was written by Novative. They are an exhibitor on the HRTech247 Payroll, Time & Attendance floor in the Technology Hall here.