REWARD
Payroll’s integration with reward and benefits: supporting employee financial wellbeing
Rachel Harte, co-founder and director, Money First Aid, explains how the increased interaction between payroll, reward and benefits is heightening employee financial wellness and discusses the changes payroll teams can expect
T he role of payroll has transformed significantly over the years. Once viewed primarily as a transactional function focussed on ensuring employees were paid accurately and on time, payroll is now integral to the wider reward and benefits landscape, especially with the increasing focus on employee wellbeing, particularly financial wellbeing. Payroll teams play a pivotal role in this shift, often serving as the first point of contact for employees with questions about their pay, benefits or financial wellbeing resources. As the distinction between payroll and employee benefits continues to blur, payroll professionals are emerging as key contributors to promoting holistic employee wellbeing, far beyond just processing pay. This article explores: l how payroll is integrating with reward and benefits l how this shift supports financial wellbeing l how payroll teams can prepare to manage these changes effectively. The shifting landscape: payroll and financial wellbeing The modern workforce faces numerous financial pressures. Rising living costs
alongside low wage growth have led to a higher percentage of income going towards necessary expenses like rent, mortgage payments and utility bills. At the same time, digital innovations have made it easier than ever to spend money on impulse and get into debt without even realising it. As more people feel the squeeze, many are looking to their workplace as one source of support. This has prompted employers to take a more proactive approach to employee financial wellbeing, recognising that financial stress can significantly impact productivity, engagement and mental health. Payroll professionals are uniquely positioned to play a key role in this shift. The integration of payroll with reward and benefits systems means that payroll teams are no longer just processors of payments; they are now actively involved in administering financial wellbeing programmes and communicating important aspects of employee compensation packages. Increasingly, payroll teams are responsible for ensuring employees understand and make the most of the financial benefits available to them. These may include: l salary sacrifice schemes for pensions,
childcare or cycle-to-work initiatives l flexible pay options, including earned wage access, which allows employees to access part of their wages before payday l workplace savings schemes, such as payroll deducted savings plans, which help employees build financial security over time “As the distinction between payroll and employee benefits continues to blur, payroll professionals are emerging as key contributors to promoting holistic employee wellbeing,
far beyond just processing pay”
l financial wellbeing resources, such as employee assistance programmes or debt management support. This evolution is driven in part by technology, which has enabled payroll to integrate more closely with human
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 38
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