It can be tricky to keep track of everything going on within your business. As your company expands and the number of employees grows, it becomes increasingly difficult to balance day-to-day aspects of business with the longer-term vision of your company. However, it is essential that any successful large business implements an effective effective wage management strategy to ensure financial stability.
Effective wage management can imply anything from the wage structure of your business to your company’s ability to adjust to contemporary tax legislation, such as single touch payroll. For business owners, it’s important to understand how an effective wage management system can benefit large businesses and help you stay in control of your company finances.
Keep reading to learn how you can implement an effective wage management strategy in your business going forward.
Set A Transparent And Fair Wage Structure
Much of effective wage management revolves around the construction and maintenance of a transparent and fair wage structure. Transparency is critical. Allowing employees to access information concerning wages, salaries, and benefits via an online payroll system can be very useful. You are far less likely to experience controversy over your wage management practices if payroll information is easily accessible.
Generally speaking, the principals of an effective wage management system are straightforward. Wages should be correct and accurate for each pay period and your wage structures should be progressive and logical, paying employees according to their education, experience, and performance. Be sure to consider local and national laws when implementing taxation and other deductions from wages as well.
Having an effective wage structure can also ensure that you are attracting the most talented people to your business. Knowing what you should and are able to offer your employees can make sure that those skilled professionals who know their worth find their way to you. If your wage management system is effective, it will also include clear lines regarding salary levels following a promotion.
Effective wage management can also motivate your employees and boost company loyalty. If you structure your wage system in a fair and transparent way, you are sure to field fewer complaints or issues related to payroll. If you manage a large company that employs unionised workers, effective wage management systems will ensure that your collective bargaining and industrial relations are relatively harmonious.
It is critical that your wage management system contains no favouritism or bias towards particular employees. The more transparent and clear your payroll structure is, the more you project your company as a progressive employer. This can only serve to benefit all aspects of your business.
Single Touch Payroll And Wage Management
The single touch payroll legislation now streamlines the way in which payroll information is shared with the Australian Tax Office. Larger companies are already required to be enrolled in the system, but businesses with fewer than 20 employees will be required to enrol by July of this year. The program is aimed at allowing the ATO to make better policy decisions regarding taxation.
The implementation of STP has created an additional incentive to keep wage management systems operating in good order. It is important to make sure that your systems are properly updated to ensure that no problems arise when reporting to the ATO.
Wage Management Is Vital
The importance of an effective wage management system cannot be overstated for any business. However, for larger companies, wage management can sometimes have a tendency to be overlooked and it is critical that you prevent this from happening in your organisation. Remember, with some forethought and planning you can make a big difference to your larger business simply through optimising your wage management system for the future.