5 Ways Company Culture Affects Payroll

5 Ways Company Culture Affects Payroll

Former Microsoft CEO Steve Ballmer once said that "great companies have high cultures of accountability." His remarks cut right to the core of what company culture is supposed to be all about. Unfortunately, many a company in America lacks any sort of culture that demands accountability. Equally unfortunate is the fact that poor company culture affects payroll.

As a provider of payroll processing and benefits administration, we know all too well that there are some companies out there that seem to be operating on a revolving door. Employees come and go as quickly as the temperature changes. This is not good for HR or payroll, let alone company productivity and stability.

We could approach company culture from any number of angles for this post. But given what we do, we thought it best to explain five ways company culture affects payroll. Some of them are good, others are not so good.

1. Culture Influences Employee Perceptions

Nothing influences employee perception quite like company culture. If a company's culture is poor, that will be reflected in how employees do what they do. Employees who work in a poor culture are the same employees who do not perform well. This gives everyone the perception that the company isn't worth working for. How does this impact payroll? By encouraging employees to look for new work elsewhere.

Every time an employee jumps ship, the payroll department has to deal with it. Loose ends have to be tied up with the departing employee and payroll has to prepare to on-board a replacement.

2. Culture Is Linked to Productivity

Payroll processing is not an easy task by any measure. Therefore, management should be concerned by how company culture affects what happens in the HR and payroll departments. A positive company culture reinforces productivity and motivates employees to give their best. That is what the payroll department needs. It doesn't need employees who dread coming to work every day.

3. Company Culture Affects Efficiency

Company culture is not always about whether staff members are getting along with one another or not. Sometimes it is about efficiency. Where payroll is concerned, a company culture that stresses efficiency encourages the payroll department to get better at what they do. It seeks to provide payroll workers with the tools they need to be more efficient, more accurate, and more flexible.

4. Company Culture Directs Employee Interactions

The payroll and HR departments invariably interact with the rest of the company's employees to answer questions about time and attendance, handle scheduling, and so forth. A company culture that promotes open and transparent interactions is a company more likely to utilize an online payroll solution that gives employees access to their own information via an online portal.

5. Company Culture That Embraces Technology

Finally, company culture is reflected in how well a business embraces technology. A company looking to push forward and stay abreast of the 21st century is one that looks at technology-based solutions to a variety of problems. Where payroll is concerned, technology can play a crucial role by way of online payroll, automated time and attendance tracking, and so on.

You probably noticed from this post that all the things discussed could apply equally to any department within your company. That's because payroll is just a microcosm of everything that goes into running a successful business. Know this though, the culture that dominates your company affects everything the payroll and HR departments do. A positive company culture yields positive results. Likewise, a negative company culture yields negative results. It is no more complicated than that.


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