Payroll Management Process and Employee Engagement

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Money is the basic motivator for the employees, and so it becomes of utmost importance to have accuracy in payroll management process. This process includes administration and calculation of the salary considering the tax deductions and retirement benefits and ultimately disbursements of salaries to the employees. The accounts department and the HR department work together to accomplish these tasks. Several payroll management softwares are used in organisations for proper record keeping, and administration of the salaries. These have several benefits such as it reduces paperwork, simplifies tasks, better management of information and it becomes easy to take decisions. Good payroll management software is capable of managing different salary structures based on the employee category within the organisation. Such software efficiently monitors employee attendance reports and maintains important employee information.

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Attendance and time tracking is an essential part of payroll management. Attendance tracking helps to make sure that the employees are paid the right amount of money for the amount of work they put in. The salaries can be on an hourly basis or monthly basis depending on the organisation’s policies, due to proper attendance tracking the companies can cover for themselves at a legal view by providing the salaries according to the efforts made by the employees. There are several benefits of attendance tracking:

  • Time and attendance systems can help the managers to track the performance and productivity of their employees. By tracking the number of hours worked, the mangers can get information about the efficiency of the organisation and if there is idle time for an employee, his time can be utilized by assigning him work.
  • Maintaining such systems allows the managers to understand issues related to working hours or leaves of an employee that needs immediate attention.
  • Proper time and attendance tracking leads to efficient payroll management which in turn motivates employees and increases their loyalty towards the company.
  • Certain attendance tracking software permit employee access to their attendance records which makes the employee more accountable and they get a sense of belongingness.
  • Tracking of attendance ensures that the employees are paid according to their work hours so that they do not abuse working hours.
  • Attendance tracking ensures better handling of employee leave and vacation requests, which leads to higher employee satisfaction. The overall work environment improves, and it increases the employee’s loyalty towards the organisation.
  • Proper record-keeping of the attendance reports of the employees keeps a check on them and reduces absenteeism.

Employee Engagement

Employee engagement refers to the loyalty that an employee has towards the organisation and towards each other. It can be understood as an emotional attachment that an employee has towards his position in the organisation, towards other co-workers, superiors and ultimately to the overall organisational culture. Employee engagement is essential as a worker’s loyalty can have a direct impact on his/her productivity and as well as on the working environment. The human resource department is responsible for motivating employees in order to bring about employee engagement.

The HR department acts as a link between the employees and their managers and the executive leadership, so they need to carry out employee activities to facilitate employee engagement. To have positive employee engagement, it is important to find employees who are the best fit for the organisation’s culture. In order to do so the HR department should take great care while interviewing prospective candidates for the company and they should inculcate company values into the selected candidates for the job. Positive engagement amongst the employees leads to the creation of a happy work environment that keeps them motivated during the period of personal or economic crisis.

It is the responsibility of HR department to promote employee engagement by creating an atmosphere of recognition for the employees who deserve to be rewarded and appreciated for their contribution in the organisation. The performance of the employees needs to be recorded and the ones who have high productivity should be rewarded with gifts or bonuses or other incentives. This in turn boosts the morale of the employees and it also increases their loyalty towards the organisation.

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