The Law of Lateness – Why Paying Your Employees On Time is Vital to Your Success

Paycheck

It’s imperative for companies to think longer and harder about employee satisfaction. Technology allows businesses to be much more efficient and comprehensive when it comes to taking care of employees. Employees shouldn’t be treated as extensions of their boss, or the company, but as valued individuals who make the company what it is.

Depending on the industry, many companies rely on their lower end staff to represent the business and give a face to a name, representing the values and image that the company has worked so hard to define and maintain. Richard Branson is well-known for vocalising his opinions on employee satisfaction and it seems to be working well for him – treat your employees right and they will treat your customers right. Or better yet, treat your employees like your most valued customer.

Value

At some stage or another, many employees have felt undervalued and overburdened from an employer. People are working longer hours under more stressful conditions, for what seems like less pay, as the cost of housing and living continues to rise. Financial remuneration continues to be a, if not the, prime motivator for workers in Australia. If you, as an employer, are not in a position for offer pay increases or bonuses, then the least you can do is ensure that all employees are paid on time, at a regular and set interval to enable them a sense of financial security and control.

Ensure Payroll is Accurate and Efficient

Satisfied employees are more productive and more efficient, which saves the company money and resources. One good way to upset a valued employee is to pay them late or incorrectly. We’ve all heard that the best bosses are firm, yet fair – and it’s unfair to be irregular or flippant about someone’s paycheck. The Fair Work Act specifies that wages should be paid in at least monthly, with industries and many businesses opting to pay more frequently, or weekly. Investing in good payroll software will make your life easier, as it takes care of calculating hours, overtime, PAYG, and meeting your employees’ chosen super payments amongst other things.

Payroll Software

Manually processing payrolls can be expensive and time-consuming – good payroll software eliminates both of these issues. Doing the payroll is more than just writing your employees a check – there are taxes to calculate, deductions for specific benefits such as car leases, health insurance, employee super contributions, annual leave loading, workplace banking and more. Some businesses process their payroll through their accounting software, which does overlap in many areas, however, when accounting software does include payroll, the payroll function in accounting software usually doesn’t include all the features of a dedicated payroll solution.

Some small businesses prefer to outsource their payroll to a third-party company to eliminate the expense of an in-house administrator or payroll software. While this is an alluring option, outsourcing your payroll comes with its own challenges. Outsourcing can cost more overall than payroll software, and there is a risk of mistakes to employee’s pay checks, which are no fault of your own but still upsets your employee. There is also the question of privacy of information when outsourcing sensitive information like your employees financial and personal details.

Before purchasing payroll software, figure out exactly what features you are going to need and work backwards from there. It can be a good idea to have a checklist handy of your business needs before locking in with a payroll solution – be sure to consider cost, scalability, and training and support, to ensure you get the right software for you.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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