How does Payroll Contribute to Positive Company Culture?


Without a fully functional and effective payroll system, no business will be able to thrive – or even last for very long! 

What is Payroll?

The purpose of payroll is to pay employees. This is the foundation of your relationship with them – even if the experience of working for your organisation is satisfying in myriad other respects, employees aren’t going to stick around if they’re worried that they might not be paid. By adopting the right payroll systems, you’ll ensure those pay packets go out exactly when they’re supposed to, with minimal administrative burden to the company as a whole. 

What is Company Culture?

Your company’s ‘culture’ is a collective, umbrella term for all of the beliefs shared by a workforce, and the behaviours that result from those beliefs. If all of your upper management hold a certain belief, then you can be fairly sure that the implications of that belief will filter down into how workers actually behave at the bottom. By fostering the right corporate culture, you can encourage positive outcomes – like employees who value a healthy work-life balance, and who are able to contribute a great deal in the long run.

How do Payroll and Culture Interact?

So, what effect might the right payroll system have on the culture inside your business? There are a few effects we might dwell on. 

Correct Compensation

Your payroll system should ensure that your staff are being paid the right amount. This is critical for employees of every kind – but those with families and dependents to support might be particularly concerned. Compensation is a term encompassing salary, benefits and bonuses, and it’s important that payroll systems include all three. If staff are promised bonuses, then the feelgood glow is likely to be all the dimmer if they have to chase you up for those bonuses.

Fraud Reduction

An effective payroll system is one that’s resistant to fraud. It will also ensure that you are meeting all of your legal obligations, and submitting documentation to relevant bodies when required. 

Improved Reputation

If you have the benefit of an effective payroll system, then your reputation as a business will be insulated against complaints from former and existing employees. This will help to bolster your reputation, and thereby draw in quality new members of staff. 

Impact on Morale

If your staff are being paid promptly and accurately, then they’re that much likelier to be happy in the workplace. This will have a diffuse effect, as the mood of one staff member can transmit to others. A bad payroll system can translate to a more broadly-felt sense of bad mood, which won’t be pleasant to work with.