The Importance of Payroll

The Importance of Payroll

Payroll is not just mere routine admin but one of the most important functions of business. Most employees’ household finances hang on their pay checks, some on a hand-to-mouth basis. Tied to the pay check are the employees’ plans, the new home, new car, next holiday, joy, pride, love and dreams and hopes. It is no surprise that payroll issues can trigger a highly charged emotions.  

When payroll is flowing, it is hardly noticed, being taken to be the business’ baseline obligation; however, when it doesn’t, it can generate disproportionately negative reactions, which if not resolved can escalate quickly and cause dysfunctional behaviours in individuals and teams. Payroll errors or delays can quickly cause suspicion and distrust. Repeated occurrence is bound to undermine business’s financial stability and integrity.

 

Maintains Company Reputation

Employees are the most important community a business interacts with firsthand on a daily basis. They are the first and most immediate source publicity – for better and worse. Casual or deliberate comments about the company pass from employees to their partners and family, and in turn to the wider community. As usual, word-of-mouth, especially negative stories are more prone to distortion, exaggeration and vilification, and spread like wildfires. It doesn’t take long to reach customers and suppliers.

Therefore, ensuring optimal functioning of payroll should be any business’ top priority to protect the business’ reputation as a stable, respectable employer.  

 

Transform Lives

A pay run can mark a new milestone for high achievers. Sizeable bonuses and commission or other unusual once-off payments can change the lives of those employees and that of their family, whether it means a new car, new home, or a grand holiday. It is directly linked to the employees and their families hopes and dreams, happiness and joy – things that touch their hearts deeply and may transform their lives in the most profound ways.

In this context, payroll is infinitely more than an admin function.  Payroll affects lives.  Payroll transform lives. That is the power a business can harness to propel their business towards their goals and vision. 

 

Boosts Employee Morale

Employees make the business. A reliable and robust payroll process demonstrates the company commitment to fulfilling its obligations to employees, its commitment to conducting business with integrity and in accordance its code of ethics.

When it comes to reward and recognitions, timing is of the essence. The more immediate the reward and recognition, the more powerful it is a boost to employee morale, and a source of motivation for future performance. Reward and incentive scheme will have its full intended effect to drive individual performance and the business’ as a whole.

 

The Cost of a Bad Payroll

The opposite is also true for a tardy and incorrect payroll. Employees feel undervalued and under-engaged. Worse, it undermines employee confidence in the business’ stability and their future income, which implies a threat to the everything the employee holds dear: their basic livelihood, their ability to provide for their family, their future, hopes and dreams. Simple payroll issues can very quickly escalate to raw existential fear, though irrational and illogical. And fear is one of the most powerful moving forces, with unpredictable, dysfunctional and potentially destructive consequences. Morale plummets. Performance drops. Absenteeism climbs, employee turnover soars and bad words spread. Management in general are treated with distrust and suspicion. Business initiatives are met with resistance and even sabotage. Bad payroll has the potential to bring down an otherwise strong, healthy organisation!

That is the important and priority payroll should be treated with.

 

How Wilson & Assoc can help?

At Wilson & Assoc we commit to delivering timely, accurate and seamless payroll service no matter how big or small your team is. We deliver payroll services on a world-class platform to ensure your payroll function is executed seamlessly and at the highest standard of compliance, integrity, and efficiency. Our services support all payroll functions including payroll tax compliance, processing, reporting and reconciliation.

If you are looking to run your business payroll yourself, we are happy to help you set up your systems and employee records. We will also provide you coaching and training to empower you with the full functionality and flexibility to run your payroll like a pro.

 

Contact Us

For any assistance with payroll and reward and incentive schemes, feel free to contact our friendly team. Trust us to apply the insight and appropriate care and sensitivity in and beyond what we do.

 

About Wilson & Assoc

Wilson & Assoc Chartered Accountants provides taxation and business advisory services to individuals, investors and businesses wherever you are based. We provide specialist services to startups and health care providers.

If we can help in any way, we’d like to hear from you.

DISCLAIMER

Information provided on this website is general information only and should not be treated as professional advice.  You may not rely on the basis of currency or accuracy of the information. We disclaim liability to all persons or organisations for any loss or damage suffered as a result of such reliance.  Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

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