If you’re not struggling financially, you probably know at least one person who is. In fact, a 2024 Pollfish survey commissioned by Paycom revealed 71% of employees are stressed about their current financial situation.
Without addressing financial stress, organizations could experience:
- decreased productivity
- lower engagement
- higher turnover
And while everyone has their own unique financial situation, that doesn’t mean employers can’t help. By promoting pay literacy — the ability to clearly understand what goes into their compensation — you can help prevent financial stress and empower your employees secure their futures.
How do businesses benefit from higher pay literacy?
The advantages of higher pay literacy aren’t limited to employees. Here are just a few ways creating a culture around it benefits employers, too:
- Reduced administrative burden: Since pay literacy helps employees understand their compensation, it’s less likely they’ll need to rely on HR to answer basic questions.
- Improved payroll accuracy: When employees know what makes up their paycheck, they can easily help identify and prevent costly issues in advance.
- Greater employee retention: Promoting pay literacy tells employees that you care about their well-being, giving them a compelling reason to stay.
- Increased transparency and trust: Showing employees what goes into their pay can help cultivate a sense of trust and connection with your organization. After all, wouldn’t you prefer to work for an employer who prioritizes accurate and easy-to-understand compensation?
How does automated payroll help reduce financial stress?
An automated payroll experience like Paycom’s Beti® engages employees with the HR process that affects them most. It works by automatically identifying potential errors, then guiding your employees to fix them before submission.
This tech lets employees easily see the entire makeup of their pay, while also giving them an invaluable opportunity to ensure its right. At the same time, it reduces the strain on HR, freeing them to focus on more impactful work.