Employee experience payroll refers to the aspects of payroll management that directly
impact employees’ perceptions and satisfaction regarding their compensation. This
encompasses not just the accuracy and timeliness of payroll processing, but also how
transparent, accessible, and user-friendly the payroll system is for employees.
Key elements include:
- Timeliness: Ensuring employees are paid on time, every time.
- Transparency: Providing clear breakdowns of pay, deductions, and any changes.
- Accessibility: Allowing employees to easily access their pay stubs, tax forms, and payroll-related information through online platforms or mobile apps.
- Support: Offering resources or support for employees to address payroll inquiries or issues.
- Engagement: Involving employees in decisions about payroll processes or benefits, which can enhance overall job satisfaction.
A positive employee experience in payroll can contribute to higher morale and retention
rates within an organization.
Why employee experience matters
There’s no hidden meaning or ambiguous buzzwords here. The employee experience
literally refers to how your employees feel about your company and their role
in it.
Views on work and employment have changed in big ways over the past few
decades. Millennials are now the largest demographic in the global workforce,
with Gen Z coming up behind them. These workers have traded in the blind loyalty
characteristic of those before them and are looking for meaningful employee experiences.
According to McKinsey & Company, when it comes to work, workers want:
- Connection
- Collaboration
- Inclusion
- Support
- Flexibility
- Growth
- Purpose
- Technology
- Trust
If you want to attract and retain talent, your global business has to
deliver on these wants.
How does payroll affect employee experience?
While money is surprisingly not at the top of most employees’ wish lists,
it’s one perk of working—but there’s more to it that impacts overall
employee satisfaction.
Your company’s global payroll strategy is directly linked to:
- Brand reputation
- Employee engagement
- Communication
- Flexibility
- Trust
A strong reputation attracts (and keeps) strong talent
Your brand’s reputation has many moving parts. The quality of your services,
responsiveness to customers, diversity, and social inclusion all come into
play—as well as employee experience.
Word gets around fast when the math doesn’t add up on payday. It only takes
two payroll errors to hurt your reputation. Nearly half (49%) of workers report they
would head for the door after that second mistake.
Engaged employees work harder, faster, better
Engagement is the measure of satisfaction with the employee experience. When
it’s high, employees are productive. When it’s not, they’re one foot out the
door.
When it comes to managing the employee experience, your payroll department can
generate goodwill simply by making it easy for employees to get paid.
This means:
- Processing an error-free payroll with appropriate tax withholdings.
- Embracing technology integrations for timekeeping and attendance that fit the flow of work.
- Ensuring accurate leave and benefits tracking.
- Providing accessible payroll information through dedicated lines or self-service options.
Communication is vital to the global employee experience
Next to getting paid correctly for their time, employees also need appropriate
communication and access to payroll information. Unanswered questions can
quickly turn to frustration, anger, and disengagement—especially when they’re
about money.
Your global employee experience should take into consideration how you share
payroll information and how employees can access it. If you’re using a centralized payroll
approach, consider designating a local point of contact for employees. Offer self-
service technology like mobile apps when possible.
If your payroll is processed locally, make sure your employees know their
point person for all things payroll (questions, tax forms, pay slips,
benefits, etc.).
Employees are accustomed to new levels of flexibility
The pandemic-era transition to remote work set new expectations for the global
workforce. And it’s turning out to be a win-win, providing employers with a
bigger talent pool and employees with more options.
Offering the flexibility for employees to work in any way can be a big win for employee
experience—whether it be working remotely, working the hours that work best
for them, and/or even getting paid in a specific currency or cadence in which
they prefer.
Trust is paramount in the employee experience (with payroll as the gatekeeper)
Building trust with employees is multifaceted. You must address respect,
inclusion, safety and mental health needs that directly impact the global
employee experience. But you may overlook other significant factors—like
technology and data privacy.
Your payroll department collects a lot of personally identifying information
(PII) your employees must be able to trust you with (e.g. names, addresses,
social security IDs, driver's license numbers, and ethnic and political
affiliations).
Adopting new technologies and introducing third-party outsourcing can add to
the security risk. While both can be helpful and improve the employee
experience, payroll needs to be vigilant about protecting employee data.
Your global payroll data is an inherent privacy risk. At a minimum, you should employ
safeguards like:
- Encryption for sensitive payroll data transmissions
- Strict ‘need to know’ protocols for email communications
- Regular cybersecurity threats training for payroll employees
- Secure data storage infrastructure with regular backups
- Partner with vendors that adhere to appropriate security protocols
Related content: The risky business of overlooking data privacy in
global payroll
A final word on employee experience payroll
Nearly everybody is talking about amping up their diversity and inclusion
programs and creating a culture of learning. But global payroll is typically
an afterthought in the employee experience.
It’s generally considered a ‘given’ that payroll data and processes are
accurate, convenient and secure. But if you fail to deliver on this, the
tables can quickly turn. It’s important to do your due diligence to keep your
global payroll strategy contributing positively to your employee experience.
A centralized vendor can help ensure your employees get paid accurately and
on time. Learn more about Payroll 360, or please contact us
with any questions you may have.