How Payroll Contributes to Company Culture

How Payroll Contributes to Company Culture

Introduction

Company culture is a set of traits viz. shared goals, values, attitudes and practices adopted by the organisation and its people that collectively helps portray its personality. It has significant impact on the way an employee thinks of his work, for instance, when the company culture is strong and aligns with the personal beliefs and attitudes of the employee, he is intrinsically driven towards outperforming his duties, on the contrary, if the company culture contradicts with the personal belief’s and attitudes of the employee, he naturally tends to underperform.

Now, what’s the point of having a positive company culture?

Stats reveal that :

  • When candidates are looking for career opportunities, 66% of the job seekers consider company culture as one of the characteristic that tops the list of their selection criteria.
  • Companies which successfully manages their company culture are capable of boosting their employee retention by 40%.
  • Companies inheriting stronger cultures can push their employee engagement rates to a high of 72%.
  • Highly engaged teams outperform their peers by 10% in customer ratings, 21% in terms of productivity and 22% in profitability.

Therefore, these are the perks of having a positive culture at your workplace.

Payroll’s contribution to company culture

Though not directly but payroll plays a vital role in contributing to the company culture of an organisation. An impeccable payroll process helps in enhancing the employee engagement and employee retention rates of an organisation, thereby enriching the work-life balance. This helps attract positive energy and thus helps gearing up the business for a longer run.

Factors of payroll which helps build company culture are as discussed below:

? Increasing Employee Engagament :

Late payouts or inaccurate pay rates might often piss employees off and leave them feeling underrated. These employees gradually begin dropping their interests in the day-to-day engagement activities and as a result, the company begins to experience a severe drop in the productivity of the business.

Therefore, an ideal pay procedure helps managing flawless payouts to their employees, which is followed by a boosted employee morale and keeps them motivated to consistently ace their performances. These employees have grown in themselves a sense of loyalty towards the organisation and therefore, might even go the extra mile to help the business achieve its goals at any cost.

? Building Brand Image :

Repeated erroneous pay processes might leave the organisations brand image in lurches, therefore leaving minimal chances for attracting top talents to work for you.

A reliable payroll process must be compliant towards the statutory laws and regulations such that they don’t fall prey to heavy penalties, flags any suspicious or fraudulent behaviours beforehand and make on-time submission of documentations within the established deadlines. An organisation which can provide the utmost security to its employees is afterall the most sought-after organisation.

? Fair Compensation :

Employees should be rewarded for their good performances such that they stay motivated to outdo their work consistently. Payments should always be in-line with the performances of the employees and favouritsm must never be the reason for promotions.

Adopting performance-based pay model is a fair play and therefore makes the employees feel valued and respected for their contributions. This further acts as the fuel to ignite the creative minds to keep performing selflessly for the organisation.

? Enhanced Career Progressions :

Employees wish to stay with companies for long, which value their abilities and skills and keep providing opportunities for their self-growth, which ultimately results in the growth of the organisation.

Compensated pays, monetary or non-monetary benefits and social recognitions offered frequently might be a great way to show affection towards your employees and let them know that you really care.

? Quick TAT :

Incase of any issues in the payouts, employees might be left in a considerably disturbed mental state, because you might never know how much of financial crisis an employee might be going through at the same time and at the same time a faulty pay might leave him more furious. Therefore, such matters should be immediately escalated and solved.

Also, easy accessibility to pay slips, salary breakups can actually help employees to decipher anomalies if any and point it out to the concerbed authorities, such that immediate corrections can be made.


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