Why Payroll Accuracy Matters In Growing Businesses
1 in every 6 companies in the Philippines still compute wages manually – that’s 23% of all the companies in the country today. While many argue that they can still do it “the way they have always done it before”, studies have shown that keeping the “old way” leads to a lot of payroll management issues such as:
- erroneous wage computation,
- inefficient use of time and human resources
- the high cost of doing it manually (large companies might need multiple people to handle wage)
- dealing with angry employees because of wrong salary amount
Is it all worth it? The answer is a plain and simple no.
The importance of employee engagement
Regardless of size, companies that pay their people accurately and on time have a more engaged workforce. In the study by Deloitte, how much an employee is paid is not as important as how they are paid. Provided that the pay is equitable, the next most important thing for employees is the attitude of the organization towards paying them. If payroll is consistently accurate and on time, this means the company cares for their people.
Employees who feel they are important give more for the business that they work for. They are more responsive to programs that the organization is running. They are more responsive to the new things the management is doing to improve the bottom line.
Do you want to accelerate your growth? Treat payroll like customer service – keep your internal customers, your people, as happy as your external customers.
Pride at work
The sense of pride of getting that paycheck is unchanged since people started receiving wages. At the very core of work or being a professional is getting fair and timely compensation and this has always been a source of pride and fulfillment. This is the reason why employees have little patience when they get wrong pay amounts and unjust deductions. When pay is not given on time or there are discrepancies, it is not taken lightly. People’s pride is on the line.
Do you want your employees to have that sense of pride while working for you? Pay them accurately and make sure there are no delays.
Wage and Employee retention
The secret to growth is securing top talent to rally your business objectives. But “cream of the crop” employees are hard to come by and they are harder to retain considering the possibility of them moving to better paying jobs. In a very competitive industry, talent piracy is common.
Going back to the study of Deloitte, how much you pay high value employees is set by industry standards. However, accuracy, timeliness, and flexibility (how employees are paid) is dependent on you and your company payroll practices. This is where payroll efficiency comes into play.
Is your business growing fast? Make sure that your payroll management is as efficient as it can be. The best way to do that is to use a payroll management system that automates everything from DTR to payout. While there are many systems out there that can provide you with this level of automation, only a few have the flexibility to answer all your payroll needs. Get this right and you can better sustain your efforts in growing your business.