Payroll is the ultimate relationship an employee shares with a company. It is an essential agreement between the individual and the organization he works for. A skilled employee values the contribution he gives to the company and expects precise remuneration in return. An employee is eager to receive the paycheck at the end of the month. It is the product of the hard work they have put into finishing tasks assigned to them. The paycheck issued by the company allows an employee to survive financially in the world. A survey by Intuit suggests that a quarter of employees have experienced erroneous payrolls. Around 49% of employees look for another job after two late paychecks. So, how does payroll affect employee satisfaction? The following points can illustrate that.
The payroll processing team may use manual techniques for calculations. Errors can occur while deducting taxes and exact leaves along with adding overtime and employee benefits.An inaccurate or late payroll frustrates the employee and they begin to question the administrative caliber of the company. A situation should never arise where the employee doubts the intentions of the employer.An erroneous payroll creates distrust and may even lead to the employee's resignation.
Non-compliance with laws
Many times, the employer is not aware of compliance-related payments. The employer needs to pay gratuities and provident funds to retiring people. If they fail to do so, the retiree can sue the company. The company can lose valuable employees if this case gets repeated. Sometimes, industries fail to meet the labor standards of an unfamiliar region and have to pay hefty penalties. A bad reputation for the company is formed which leads to resignations. Even employing fresh candidates becomes quite difficult. According to Glassdoor, the cost of hiring a new employee to fill the vacant position is around $4000.
Lack of Transparency
Imagine an employee who wants to know the particulars of their payroll and has doubts about the salary received. They will have to approach the accounting staff and request a thorough discussion of the deductions. The accounting person will explain to them the number of unpaid absences, taxes, insurance, etc. The overworked HR person may get irritated during such incidents. Such confrontations waste time and demotivate the employee to work for the company.The employee looks for a job that allows them to grow productively and produce better outputs. This is a tedious and time-consuming affair that can be avoided using automation.
How does an outsourced payroll service increase employee engagement?
After delegating responsibility to a team of experts, the company can be assured of the accuracy and punctuality in their payroll processing. The payroll service acquaints itself with the local laws and adheres to their compliance. Taxes are updated regularly and the company does not need to bother itself with the latest modifications. The employee has access to a self-service portal where they can personally assess the numerical values in the payroll from the number of leaves, overtime, current tax variations, etc. They can easily apply for leave encashment through the portals. They can log in through these portals anywhere without having to personally consult someone.An error-free payroll with an automated attendance and leave management system enriches the employee experience. In this way, employees recognize that their employers have a disciplined approach towards their well-being and provide them with the best-in-class tools to clear their suspicions.
Paysquare's team of experts enhances your payroll processing by giving error-free results. We consider that employees' welfare equates to the company's welfare. An uncomplicated portal allows employees to form a mature relationship with the employer and we help in achieving it. We aim to ease employee life and satisfy their anticipations.
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DeliziaHR is designed with rich features and enhanced UI/UX experience for managing onboarding, payroll management, leave management, compliance management, and exit management. It is designed for businesses of all sizes and is scalable to meet any of the complex requirements of the HR Department.