Employee engagement is an essential ingredient for business success. Motivated employees are generally more productive and satisfied, supporting the organisation in achieving its goals. While factors such as culture or flexible working are increasingly important, pay is perhaps the most important element influencing employee engagement levels.
If employees weren’t paid on time or the correct amount, this would inevitably affect their motivation. However, payroll professionals often fail to recognise their contribution to enhancing employee engagement. What is more, only 51% of those employers that offer financial education do so because they believe it would increase staff engagement . However, a lack of understanding of pay-related issues could stir up unnecessary tension between the organisation and its employees.
There are a number of ways employers and payroll professionals can increase employee engagement, while improving their financial awareness. For example, employees may not fully understand how different factors influence their payslip, including National Insurance and tax. In addition, some organisations may choose to educate employees about the benefits they are eligible for, or help them make better pension decisions based on their individual needs.
Supporting employees’ financial understanding will demonstrate how much the organisation values its employees, making it a natural part of wider corporate responsibility initiatives. Considering the profound impact productivity and job satisfaction have on overall business success, organisations should ensure payroll and financial education programmes are included in their overall employee engagement strategy. In return, employees will feel they are supported by their organisations in and outside of work.
Thank you for celebrating National Payroll Week with me – I hope you have enjoyed my blogs embracing the importance of payroll throughout the week. Did your organisation participate this year? Let’s continue the conversation via #NPW15 on Twitter.