While many companies are now adopting online pay stubs, not everyone understands them. They can be confusing, especially to employees, more so to those who have been used to getting printed payslips in the past. While some employees don't bother looking at their pay stubs, others are keen to look for any discrepancies.
Employers have to help their workers understand their stub payroll. That way, they can then confidently answer any questions their employees might have regarding the payroll process. Here are some tips on how business owners can help employees understand their pay stubs.
Clarify How Employees' Pay is Calculated
One of the major questions from employees is how their pay is calculated by the payroll team. Since all the hours appearing on an employee's stub payroll are averaged across 12 months, a shorter month is likely to throw off their calculations. While an employee's pay stub might show that they have worked 162 hours, the correct number of hours is only 130. Employers should consider adding such detail to their employees' pay stubs to avoid getting such questions.
Be Clear on Employee-Paid Benefits
Another misunderstood area regarding pay stubs by employees is how their other compensation is documented, including pensions. Employees need to understand what they pay and what their employers pay. They should understand its representation on their pay stubs. Unfortunately, many pay stubs don't cover all the elements in detail. Employers should expand this field on the stub payroll to show this itemization.
Include an Employee Self-Service Functionality
To help employees fully understand their pay stubs, employers can implement an employee self-service functionality. As more employees become tech-savvy, they expect full access to their pay stubs.
Employees can use stub payroll software to come up with an FAQ where they include all common questions regarding pay stubs. Employees can then access and review them on demand. That way, they get answers immediately as they wish, and employers don't have to spend a lot of time answering the same questions.
Include Understanding Pay Stubs to the Onboarding Process
Most employers rarely consider this when implementing employee experience. Understanding pay stubs is rarely discussed during the induction process. However, doing so could be beneficial for employees as it helps them understand the whole process.
The issue is that many companies make understanding how payroll is prepared to look complex while it isn't. Once the process is simplified for employees, employers can easily display differences such as holiday entitlement and other important things that are included in a pay stub.
In most cases, employees will see things on their pay stubs that they don't understand. They may be afraid of asking or keep coming to you for clarification each time they find something they don't understand.
Teaching them how to understand their pay stubs during the onboarding process will help resolve all these issues so that they will never be confused about any element in their pay stubs.
Simplify the Process
Companies offering stub payroll solutions such as this one have made the process of creating them straightforwardly. Similarly, employers should also help their employees understand their stub payroll in easy steps as outlined above.
