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 must 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 well-being.
Find out in this article how payroll affects employee happiness at work and what are the key elements of an effective payroll.
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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 goof payroll management
In order to ensure an accurate payroll, payroll managers must consider a multitude of factors. Discover the 3 pillars of effective payroll management:
⚪️ Compliance
Good payroll management necessarily 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.
⚪️ Accuracy
Who doesn’t look forward to their paycheck? 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 a lot of bills and many people organize their budget around payday. That’s why it’s necessary for payroll to be accurate, precise and on time! It is also increasingly important to make pay slips easier to read and understand. In France, since January 1, 2018, the pay slip is generalized 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 pay slips. 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 pay slips at any time.
⚪️ Security
Data security is a current and major issue. Personal data must be protected, even more so in a digitalized 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. At Novative, security is a priority. Our information security management system is ISO 27001:2013 certified. This certification attest to our high level of security and rigor in managing the data entrusted to us. The data is stored in a secure center. Our software also has a set of measures to strengthen the confidentiality and security of our customers’ personal data: encrypted data, two-factor authentication, specific access rights for each profile…
How does payroll contribute to employee happiness?
⚪️ Reputation
Payroll has an impact on your company’s reputation. It’s 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.
⚪️ Motivational Lever
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 a good idea to make pay days consistent, always on the same days or on the same period of time. It will then be an unchangeable variable that will make it easier for your employees to manage their budget.
⚪️ Accessibility
Accessing payroll data at any time and being able to view and download your pay slips easily from your computer or phone has become an indispensable asset in any business. The dematerialization of pay slips has several advantages:
- Time savings by eliminating time-consuming tasks
- Storage and traceability
- Modernity
- Reduction of the ecological footprint
- Savings
⚪️ Flexibility
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 optimize your payroll by automating the processes and covering all these specificities.
