Enhancing Employee Communication in Payroll: Hints and Tips
Communication is a cornerstone of any successful business, and payroll is no exception. When employees don't understand their payslips or have questions about their benefits, it can lead to confusion, frustration and even resentment. That's why it's so important for payroll teams to communicate effectively with employees. We’ve outlined some basic principles to help businesses communicate payroll policies clearly and make sure they reach the intended audience.
What to Consider When Designing a Communication Plan
The first step to effective communication is to develop a communication plan. This plan should outline what you want to say, which employees you want to say it to and which channels you will use to communicate with them.
- Goals: What do you want to achieve with your communication? Do you want to improve employee understanding of their paychecks? Increase enrollment in benefits programs? Setting out a clear goal will help you make sure your communication is clear and easy to understand
- Target audience: Who are you communicating with? Tailor your message to the needs of your audience. We all know that busy employees will often scan-read an email from HR or payroll, so make sure your messaging is as clear and simple as it can be.
- Channels: How will you reach your target audience? Some common channels for payroll communication include email, physical letters, workplace posters and employee meetings. If you want to be able to track which employees have read and understood your message, you can create a free Google Form which asks employees to confirm their understanding.
The basic principles of effective payroll communication
These are the fundamentals. Communication with employees doesn’t need to be complicated. In fact, the simpler it is the better for everyone. So whether you’re rolling out payroll policy changes or dealing with an employee directly, following these straightforward tips will help you get it right.
Using Clear and Consistent Language
One of the most important aspects of effective communication is using clear and consistent language. Avoid using jargon or technical terms that your employees may not understand. Instead, explain complex concepts in a simple and easy-to-understand way. Here are some examples of how you can easily replace technical terms with straightforward language.
- Replace "gross pay" with “your total earnings”.
- Replace "net pay" with “your take-home pay”.
- Replace "pre-tax deductions" with “money taken out before taxes”.
- Replace "post-tax deductions" with “money taken out after taxes”.
Providing Multiple Formats
Not all employees learn in the same way. Some employees prefer to read written information, while others prefer to watch a video or attend a meeting. By providing information in multiple formats, you can ensure that all of your employees have access to the information they need in a manner that suits them. You’ll also be making sure that there’s less chance of an employee missing or ignoring your update. Here are some possible formats to consider:
- Emails
- WhatsApp Updates
- Printed Payslips
- Infographics in Company Newsletters/Flyers
- Payroll Department Information Board
- Employee Meetings
- Company Intranet/Employee Portal
- Mobile App/Self-Service Portal
- Explainer Videos/Short Animations
- Podcasts/Audio Recordings
- Posted Letters
Tailoring Communication to the Audience
When crafting your communication plan, it's crucial to remember that a one-size-fits-all approach won't often work. Consider these factors to tailor your message for different employee groups:
Experience Level
- New Hires: Focus on providing a clear overview of the payroll process, including pay schedule, paystub breakdown (explained in simpler terms), and tax withholdings. You might also include a walk-through of the self-service portal or how to access paystubs electronically.
- Experienced Employees: Provide updates on policy changes or new benefit options. Offer in-depth information on specific deductions or tax implications in a more detailed format (like a downloadable PDF).
Job Type
- Hourly Employees: Focus on explaining overtime pay calculations, timekeeping procedures, and how to report absences. Visual aids or short explainer videos can be particularly helpful.
- Salaried Employees: Offer information on bonus structures, stock options (if applicable), and benefit plan details.
Language
If your company has a diverse workforce, consider offering translated versions of important payroll documents or having multilingual resources available.
Accessibility
Ensure all communication formats are accessible to employees with disabilities. This may include providing transcripts for videos or offering documents in alternative formats such as Braille.
Seek Feedback and Improvement
Communication is a two-way process. Regularly ask for feedback from employees on how they perceive and understand policies and procedures. Analyse communication metrics and employee responses to identify areas for improvement and enhance engagement. This is the best way to find a communication approach that truly works for your business.
Need more help with payroll?
At Finesse Resources, we specialise in helping UK businesses get payroll right. Ensuring your employees get paid accurately and on time, as well as providing support in areas such as employee communication. If you’d like to find out more about our outsourced payroll services, speak to one of our CIPP-accredited experts today.