By prioritising payroll you are prioritising employees, says Jeff Phipps, managing director of ADP UK.
There are a multitude of moving parts at the core of business success and growth, and there is no exact recipe for business success. However, there is one crucial business function that can often be overlooked – payroll.
If people are the lifeblood of an organisation, payroll is the heart. It drives employee engagement and trust, as well as ensure business functions are properly supplied and the business continues to pump forward. But more often than not, the real impact of payroll is overlooked.
Having an accurate and seamless payroll function is crucial for every business and becomes even more critical in the context of expansion and growth. Business and organisational change can test employee morale, and if basic business functions like payroll do not run smoothly during times of change, organisations risk losing the trust of their workforce.
On the flip side, prioritising payroll and understanding its value can help businesses to attract and retain talent. ADP’s Future of Pay study revealed the increasing demand for alternative payment methods and flexible pay cycles.
In the report, 78 percent of employers surveyed agreed that companies will need to customise payment options to remain competitive in the war for talent. While 62 percent of employees said off-cycle pay options, such as the ability to choose pay frequency, would make a difference when considering a job offer.
Payroll can also illuminate the ethics and values of an organisation, which plays an important role in remaining competitive. It is essential that companies not only stay on top of reporting requirements in order to be compliant with legislation, but also because they provide insight into culture.
With gender pay gap reporting implemented in the UK and ethnicity pay reporting potentially on the horizon, payroll is more than just a business function, it’s an opportunity for organisations to be transparent about their business practices. If you value diversity and gender parity in the workplace, there are few things more important than how companies reward their people.
Payroll is probably not the first thing that springs to mind when we think of business success, but it is the foundation of what makes a business tick. Companies in every industry require payroll to operate, and to run smoothly and accurately with no room for error.
Paying your people accurately, while also responding to business and economic changes can be a daunting challenge. However, investing in cutting-edge HR and payroll technology is worth the rewards of stronger insights and employee trust.
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