Does outsourcing salary management improve employee loyalty?
At first glance, salary management and employee loyalty might seem as though they sit at opposite ends of the spectrum. While salary management is operations and knowledge-based, employee loyalty is mostly based on how a person feels in an organisation. Yet the two things have more in common than you may think.
The focus has shifted
The generation entering the workforce currently – millennials – are a little less worried about how much they get paid and a little more focused on the culture of their workplaces. Of course, the money matters, that hasn’t changed – but millennials have a different attitude when it comes to their work – they want to work doing something they love, with people they get along with. It’s as simple as that. Millennials aren’t the only ones either, in a 2016 survey by TinyPulse, great colleagues and peers were the #1 contributor to workplace happiness.
When it comes to the current workforce, it’s important to keep salary management ticking away in the background but the focus needs to be on positive culture and behaviour. If this isn’t fostered, you can expect employees to hop around, looking for better options.
Do what you enjoy
Managing the salaries of your employees is important and it comes part and parcel with your business. Unfortunately, not everyone enjoys handling the administration side of things – that’s only natural. There are two ways it can unfold when you don’t like dealing with salary management: either the admin gets done but because you don’t enjoy it, it eats away at your time and you never have time to dive into the other areas of business that you do love or the admin simply never gets done on time. Despite the many employees caring about culture more, money still matters and when employees don’t get paid on time or correctly, the effects can ripple to their families and have quite a negative effect.
So, what’s the solution?
Outsourcing salary management may seem daunting but it actually saves business owners a whole lot of trouble. Getting your head out of the admin means that you can get your head into the areas of your business that you love the most; culture starts at the top, after all, and if you’re not enjoying the job you have, how can you expect your employees to be loving their role?
It also means that you will have more time to create a positive workplace culture and when employees love where they work, they’re far more likely to stay. Despite the productivity benefits of employee loyalty, there’s also a financial benefit – the Center for American Progress estimates that the cost of replacing an employee is about 20% of that employees salary.
Employee loyalty is important for any organisation, so if you’re ready to focus on culture and making a workplace that your employees love coming to everyday, Pendragon can help you with your salary management. Get in touch today on 02 9407 8700.