There is an indefinite amount of research to support the speculation that well-compensated and timely payments to the employees guarantees high job satisfaction levels. However, the process is not that simple.
Besides looking for the right mode of payment, an organization also needs to understand the salary-based expectations of the workers, deserving bonuses, and compensations they might be looking for in time of need.
So what are some practices that a company should have in perspective if it wishes to not only make employee payment procedures easier but more efficient as well?
Choose a Mode of Payment That Is Beneficial To The Employee and the Business
Amidst digital transformation, it makes zero sense to stick to paying in cash. It is cumbersome, difficult to manage, and a waste of time if you are working with a large number of employees.
Therefore, many companies have decided to go with direct deposits. In most cases, employees only need to provide the account number and routing number to have the direct deposit set up. They can also choose to share a routing number of digital apps such as Cash App to which the monthly pay would be automatically deposited.
Direct deposit automates the whole payment procedure. It ensures the organizational management is not burdened by keeping track of pay rolls and also guarantees that funds would reach the employees on time. The catch? Happy workers!
Moreover, some companies choose to go with options like payroll cards.
These prepaid cards are specifically designed with one objective: eliminate the need of a bank account and have the payment sent directly to the card.
Once the payroll cards are given out, employees can keep them and the recurring monthly pay would be shared to their account. There are some set up and maintenance fees that may be deducted from the account so make sure you compensate your workers for it.
Openly Discuss The Total Package Instead of Just The Monthly Pay
Workers often weigh the job on the basis of the cash that they are getting at the end of the month. This is partly because companies fail to convey the other benefits that they are offering as well.
If you are providing fuel compensation, non-cash incentives, reimbursement of money spent on company-related trips, etc, make sure that these things are clarified at the time of the hiring.
It is even better to put them down in writing so the employees could have a better understanding of the total package.
Don’t Be Afraid of Carrying Out Salary Surveys
Surveys have always been a good way to gather reviews from a group of people. If your company wishes to make the payment process to employees easier and more satisfactory, perhaps the best approach is to learn what they think of the relevant practices at the workplace.
Ask them about their choice of payment method. Maybe you will be surprised to find out that some prefer to get cash so they can use it for investment on platforms like Robinhood to use the funds elsewhere. Others may be more than happy to set up direct deposit.
Similarly, encourage them to share if they think they are under-paid or comment on how a better salary would improve job satisfaction levels, etc.
Salary surveys can help the employers develop fair payment practices keeping in view what specific post-holder is expecting, his duties, and qualifications.
Be Ready To Compensate Workers In Times of Need
The organization needs to develop an “equal compensation” policy to ensure that all workers enjoy unbiased access to support, financial and social, if need be.
Fairly compensated workers tend to have higher job satisfaction as they are comfortable with the environment that they are working in even if the pay-scale is relatively low than the market value.
Therefore, it should be made a priority to quarterly review the compensation policy implemented within a company and ensure that there are no discrepancies in the process.
Take-Home Message: Be Fair With Pay Practices
It all boils down to one basic goal: implement fair pay practices in the workplace to attain higher job satisfaction levels.
Provide complete clarity to the workers on how payments work, when they should expect raises, what compensation the company offers, and encourage them to discuss their view on the policies.