How inefficient payroll undermines employee engagement effort


It's every employee's basic right to get paid on time and correctly for their completed work. So naturally, when employees are left to deal with the consequences of frequent payday failures, it leaves them feeling undervalued by the company and as a result, disengaged.

Organisations are becoming more aware daily that this disengagement can be infectious. When one employee has a bad taste in their mouth, they're quick to spread the word to others. As a result, discretionary effort is at risk and employees will not be representing the business the way you intended. 

In this blog, we discuss how an inefficient payroll undermines employee engagement effort, but how an efficient one can improve it. 

Earning employee trust through efficient payroll 

If an employee is showing up for work but not getting paid on time, it won't take them long to lose trust in their employer and look for other employment opportunities. That churn can quickly become costly to a business. 

Paying employees on time and accurately is, therefore, one of the easiest ways an employer can start building on trust. And, providing transparency and clarity over payroll calculations further grows the employee-employer relationship.

Further, a smart payroll system can help employees make sense of complex payroll calculations. This often results in a number of queries between employees and either the payroll team or their line manager over calculations. By providing transparency and clarity around these calculations, employees can make better sense of their money.

Of course, not every payroll system has these capabilities...

 Click here to learn more about how payroll software can improve employee engagement.

Why businesses need to consider automated payroll systems

Businesses should seek out a smart payroll system can give. This should include “frictionless” processes for payroll inputs and checking, and deploying employee focussed designs on all systems that connect to employees.

Smart payroll systems can also provide managers with analytics that support their employee engagement efforts. For example, a simple view of the generational diversity of their workforce may provide a better understanding of likely behaviours or motivations of different teams depending on their generational makeup.

Employees also tend to think highly of an employer who provides modern and well-designed tools that are employee-focussed. As online, mobile and social applications become ever more prevalent in people’s personal lives, they expect these conveniences to be part of their work life as well.  

Email or printed payslips are considered a thing of the past - modern apps on smartphones provide “cool” and practical functionality that can help employees engage more efficiently. Well-designed smartphone apps and employee portals can provide a simple high-level view of an employee’s pay and give them easy access to time-off requests, and give easy approvals to the managers. This technology can help encourage positive relationship building by reducing mundane admin.

It's easy to see how investments in engagement are quickly undermined by unnecessary payroll issues. It's definitely in the employers' best interest to opt for innovative features of modern payroll systems from vendors who understand employee engagement.

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