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When it Comes Payroll, Size Doesn't Matter

02/23/2016

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3 Reasons Why Payroll is Crucial to Your Company's Success

Payroll is an integral part to any business. Consistent, timely payroll is pivotal for keeping employee morale up, can actually save your company money in the long-run, and sets your company up for success. Yet, whether you have 10 employees or 10,000 employees, the importance of payroll remains the same. Here are three reasons why a properly managed payroll is crucial for your company’s success:

Morale

Perhaps the most important aspect of payroll is its impact on your employees. If payroll is constantly late or riddled with mistakes, then employee morale is going to diminish. Take a step back and look at it — getting paid is the one of the main reasons your employees work for you, and if you’re not reliable with their compensation, then that work will slowly disappear. What’s more is that employees are more aware of a company’s financial state in a smaller business. If there are constantly problems with payroll, then your employees will start to question the viability of the company. 

Compensation

Another important aspect of payroll is that compensation allows an employee to feel his or her net worth within a company. If your employees feel valued, then they will tend to put out better work and stay with your company longer. Of course, salary and bonuses play a big part in an employee’s felt worth, but so do benefits. An employee who receives benefits is going to feel much more valued than one who doesn’t. 

Processing Payroll

Processing payroll can be a time-consuming job, regardless of the size of your business. Yet, no matter the amount of work necessary to handle it, payroll needs to processed regularly, once or twice a month. The payroll information must also be correct, so employees are getting paid on-time and with the correct amount. For a smaller business, it may be a good idea to consider outsourcing your payroll responsibilities to free up time for what you want to focus on. 

Need help managing your payroll? Contact your local LBMC Employment Partners representative today!

Posted in: Payroll