How Payroll Can Make or Break Your Company Culture
Recruiting and company culture go hand-in-hand. 74% of surveyed HR professionals say a company’s reputation is crucial when it comes to recruiting.
But company culture is about so much more than casual Fridays, teamwork exercises, and what’s said around the watercooler. It’s about how you treat your employees and making sure they’re compensated for their time.
No one wants to work at a company that has trouble paying its employees.
However, 82 million U.S. employees, around 54% of the American workforce, are affected by payroll problems, and 49% of workers would begin a new job search after only two issues with their paycheck.
Take a look at the relationship between payroll and company culture so your employees stay loyal to your company.
How Payroll Affects Company Culture
- Employer Branding and Business Integrity
Your business will lose a lot of credibility if your employees aren’t getting paid on time. Payroll is about reducing fraud, protecting your employee’s finances, and meeting hard deadlines.
Without these safeguards, your employees will start to lose faith in your business. Disgruntled employees may even start posting negative reviews of your business on Glassdoor and other employer review websites, which sends the wrong message to potential candidates.
A poorly managed payroll department can also lead to cash flow issues, bringing your entire organization to a grinding halt. This won’t instill confidence in your employees, leaving them to wonder if your business has what it takes to succeed.
- The Backbone of Employee Engagement
Payroll is also crucial when it comes to employee engagement and efficiency. Your employees will be less likely to go above and beyond for your company if they’re not getting compensated for their time and effort.
Creating financial incentives for your employees is another way to boost engagement, but this only works if your employees know that they’re going to be paid on time.
Without a steady paycheck, your employees will be more focused on their own financial troubles than the task at hand, slowing down key operations throughout your business.
- A Sign of Employee Progression
If you want your employees to stick around for the long haul, you need to reward them for their loyalty. From benefits to additional compensation, payroll becomes a sign of how much you value your employees.
Without this steady progression, your employees will start to feel undervalued and underutilized, forcing them to look for work elsewhere.
Be clear about how and when your employees will receive a raise to keep them motivated on the job. Show your employees how their performance relates to compensation, so they understand how much they’re making and why.
- Increasing Transparency and Keeping Employees in Control of Their Finances
In addition to getting paid on time, having a great payroll system is about helping your employees keep track of their finances.
Using the latest payroll software can help you improve routine tasks like issuing payment, calculating taxes, and issuing benefits. But your employees should be able to track these processes as well using an online dashboard. They can see when payment goes out and how their benefits are handled on a case-by-case basis.
Mobile payroll and HR programs help your employees track their earnings over the long-term so they can see how much they’ve made month-to-month or year-to-year. This increases transparency throughout your company culture, so your employees feel as if you’re dealing with them fairly and honestly.
If you just hand your employees a paycheck at the end of the week or month, they’ll have to calculate these statistics on their own, which can make tax season all the more painful.
New technology is taking the stress out of payroll management, helping everyone stay on the same page.
Payroll is an essential part of any business. If you overlook this key aspect of your operations, your employees will be less loyal to your organization as they start to explore new job opportunities. New technology helps you automate certain payroll operations, so your employees don’t have to worry about not getting paid.
Use these tips to optimize your payroll and HR department. For more recruiting tips, attend brand marketing conferences in your area to hear about the latest trends in HR and business management.