June 15, 2021 by Satabdi Mukherjee

4 Ways Payroll Can Boost Employee Engagement


4 Ways Payroll Can Boost Employee Engagement


Wondering what payroll has to do with employee satisfaction?

Put yourself in your employee’s shoes. Would you be willing to work wholeheartedly if you knew that there could be salary glitches at the end of the month? Or worse, your salary could get delayed?

Payroll has a direct impact on an employee’s experience of the workplace and its culture. When salary is credited on time and accurately, employee satisfaction increases.

Likewise, when salary is not paid on time or there are errors in calculations, employee satisfaction plummets. This also reduces productivity and morale, causing a negative atmosphere to prevail.

Other factors that affect employee satisfaction include treating an employee with respect, offering a competitive pay, recognizing employees’ work regularly, empowering employees, and offering perks and benefits. These factors are also linked to payroll.

How can payroll ensure that employee satisfaction is maintained?

Your payroll department can support an organization’s efforts to boost employee engagement and satisfaction by adopting a payroll management software that includes the following features:

1. Error-free salary and tax calculations

The best way to avoid salary disputes is to use an automated payroll management software that simplifies salary calculations and tax calculations. It signals to your employees that you care about them and respect the effort they put in every day at work.
Delayed salary payments are no trivial matter and you are bound to lose employees if you let it continue.
Studies have shown that there is a positive relationship between compensation and job satisfaction, and that generous rewards help retain employees and earn their loyalty and commitment.

2. Integration with time and attendance recording systems

Manually updating time sheets may be the last thing that an employee wants to do. Unscrupulous employees may also try to tinker with their time records.

Automated time and attendance management solutions not only record data accurately but also provide employees with clarity regarding their shifts and overtime payments.

This makes employees confident about the pay they expect to receive at the end of the month and the payroll team does not have to waste valuable time manually tracking and reconciling hours.

3. Accurate leave record management

Managers and employees may have leave disputes causing a rift in their relationship. A streamlined leave management system ensures that leave policies and leave structures are clearly defined and executed.

Employees are also updated about their leave status requests in real time, allowing them to plan their time more efficiently. They also feel appreciated and valued, which directly feeds into productivity and engagement.

4. Self-service options - mobile app

If employees are able to access details regarding their salary structure, tax deductions and benefits, timesheets, and leave records--especially through a mobile app--it gives a fillip to their satisfaction at the workplace.

Employees have greater control over their information and they feel motivated to take ownership of their information. Access to data reduces uncertainty and stress and improves the bond that employees build with their organization.


Investing in the right payroll software for your small business can make noticeable changes in employee morale and job satisfaction. In addition, you’re also communicating to your employees that you cherish values such as accuracy, timeliness, and excellence.

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