REWARD
“Further, the inclusion of tips and advice will cement the supportive role the payroll team can play for employees and thus improve relations between the two”
you will appreciate, payroll management is often extremely complex and can be inaccessible for employees due to the use of jargon and abbreviations. A handbook which uses simple language and diagrams to explain concepts such as pay as you earn and tax codes would help make the payment process more comprehensible for employees. A handbook would also pose an excellent opportunity for payroll teams to show employees how they’re dealing with topical affairs. Payroll teams should support employees’ financial literacy by explaining how changes announced on occasions like government fiscal events (such as the budget held on 30 October 2024) could affect their take-home pay. Accessible resources Payroll teams could publish a quarterly payroll newsletter for employees, to cover the following topics: ● updates on payroll processes ● upcoming changes in tax regulations ● tips for financial management. A regular newsletter will showcase to employees that the payroll team is taking a proactive approach in response to legislative changes. Further, the inclusion of tips and advice will cement the supportive role the payroll team can play
for employees and thus improve relations between the two.
in this area, subsequently raising the profile of the payroll team and facilitating a feeling of trust and confidence within them from employees. Automatic notification systems for pay- related updates, changes or potential issues Payroll teams could use simple technology to improve transparency and trust between employees and the payroll team. By using an automated notification system to provide employees with real-time updates about pay changes, potential discrepancies in wage calculations or processing issues, payroll teams can proactively address employee concerns regarding their pay. Legally, employers must provide employees with payslips, which must show: ● earnings before and after any deductions ● the amount of any deductions which could change every time an employee is paid, for example, tax and National Insurance ● the number of hours an employee has worked, if their pay varies depending on time worked. An automated system could help payroll teams fulfil this legal requirement by ensuring payroll information is circulated in a timely and accurate manner. n
Personalised support and proactive problem solving It’s apparent that payroll teams are becoming key players in creating a positive workplace experience for employees. Payroll teams could use the following to transform their approach to employee support and build stronger connections with employees. Create an email address / portal dedicated to payroll support Payroll teams could set up a singular email address or online portal to be used by employees when asking any queries they may have regarding their payslips. Payroll teams have a wealth of information which can assist employees in improving their understanding of their pay. For instance, it may be that employees don’t understand what their tax code is or how to check if it’s correct. According to research carried out this year, 35% of UK workers would find another job if their employer paid them incorrectly even once. An email address / portal such as this would establish a channel for employees to access the payroll team’s knowledge
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
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