Company culture should not be overlooked. A great company culture breeds employee satisfaction and engagement. However, building a company culture is hard work that requires many elements including a vision, values, communication, and an appropriate work environment and management style. One element that is consistently overlooked, however, is the payroll.

Payroll may not directly contribute to a company’s culture, but it affects employee engagement, which is an element of organizational culture. A study by Spherion revealed that among employees’ top concerns during their job search were their experience in the hiring process, the number of perks, programs, and benefits a company offers to help workers achieve work-life balance, and their connection with a company’s culture and values. This means that a good payroll team is necessary to provide benefits and correct compensation.

Correct compensation and work-life balance are particularly important for workers with families, and recurring payroll errors raise concerns among employees. A recent survey found that 49% of American workers restart the job search process after experiencing only two payroll errors.  Showing the attention they give to payrolls. So here’s how payrolls contribute to a positive culture.

It Builds Reputation

A company’s reputation relies on its stability and security. A trustworthy, reputable, and qualified payroll team works towards these goals by preventing fraud and ensuring compliance. These actions build a good reputation with the public and prevent negative press.

By ensuring proper management of payroll, there’s a lesser chance of errors or suspicious activity.

It Increases Employee Engagement

Accurate and timely remuneration of workers is essential. If employees are consistently paid incorrectly or insufficiently, they feel undervalued and less inclined to perform their duties. Late and missing payments can also lead to suspicions and loss of faith in a company motivating employees to leave.

A reliable payroll creates confidence and assures employees that their queries will be dealt with swiftly. Having faith in a company boosts morale and increases engagement.

It’s Compensation

A study by Robert Half found that 46% of professionals feel underpaid which is a problem. Employees want recognition for work done, and remuneration is one way to do this. Accordingly, employees want adequate compensation for their effort.

Appropriate payrolls enable proper compensation of staff. For example, a performance-based pay model means employees are compensated for their work leading to higher satisfaction.

Encourages Employee Progression

For workers seeking a long stay in a company, progression is vital. They want career progression within companies. As a result, organizational success depends on employee recognition. One way to recognize employees’ achievements is through compensation indicating the importance of payrolls.

Better Use of Resources

Managing employees’ compensation takes time. Through a reliable payroll, time-consuming tasks can be delegated to allow better use of resources. HR and payroll software is available to improve the process to save time.


Employees seek easier accessibility to payment information. Technology aids them to access current and historical payslips easily. It minimizes the need for employees to visit the payroll team for this information, and it leads to improved payroll management and employee experiences that enhance retention rates.

It is evident that payroll contributes to a company’s culture. Without a good payroll, businesses are at risk of having a bad reputation, minimal engagement, and high turnover. So, have your business invested in its payroll?