Employees’ happiness is directly tied to their levels of productivity and commitment to your company. Increased absenteeism, animosity, and a decline in work quality are some of the signs an employee might be dissatisfied. These symptoms can end up costing your business in more ways than just the potential loss of a staff member. Lowered morale and job satisfaction can spread like wildfire, creating a toxic culture that’s difficult to recover from.
The Right Payroll Software Will Keep Your Employees Happy
Low engagement and unhappiness on the job rarely develop overnight or come from one employee. The feeling of being unappreciated, poor communication, and strained relationships with peers and bosses are factors that can lead to unhappiness. So can a lack of trust or broken trust between the employer and employee.
Why Paycheck Mistakes Can Cost You
Making mistakes with employees’ paychecks is one way an organization damages trust. While money is often not the main reason why workers leave, accurate, on-time pay creates a sense of security. Payroll software for small businesses can help prevent errors, make direct deposits when promised, and let staff manage their benefits.
Frederick Herzberg, a behavioral scientist came up with an idea in 1959 that he called the “Two-Factor Theory.” This theory views wages as a potential source of job dissatisfaction if they are inadequate or missing.
Aptitude Research Partners has found that 49% of U.S. workers will turn in their resignations after two paycheck mistakes. Automating your payroll process can help you avoid such mistakes, ensure employees get scheduled raises, and remove workload burdens from HR staff.
With added features like financial wellness education, payroll solutions can even ease workers’ money worries.
How Payroll Software Can Prevent Problems
Ideally, employees join your company because they want to do the job. They gain meaning from the work itself and are intrinsically motivated to show up each day.
While purpose and achievement are doubtless important for employees’ job satisfaction, workers can’t be happy if they’re worried about their physical survival.
That survival, of course, depends on getting paid in a fair and timely fashion. Here are some of the ways payroll automation can alleviate that concern and increase your employees’ sense of well-being.
Have you ever looked at one of your pay stubs with a sinking feeling that something wasn’t right? Maybe your expense report reimbursements were missing, or your sales commission wasn’t calculated correctly. You had to find documentation, prove your case, and have a lengthy conversation with HR. It’s not a pleasant experience, and it’s worse still if it prompts feelings of panic over how you’re going to pay the mortgage.
Automated payroll solutions reduce errors related to human oversights by syncing hours, pay and salary rates, and PTO benefits. The software makes the calculations and sends out paychecks and direct deposits according to schedule. If your company keeps track of expense reports in a separate application, payroll software can sync approved reports.
Integrated apps can also automatically deduct vacation, sick, or personal time off from existing balances. With hourly employees, payroll solutions will correctly add paid holidays and time off as compensation. You can double-check pay rates and enter in additional commissions and bonuses if needed. Federal and state taxes will also be deducted without HR having to worry about compliance or calculations.
Fewer mistakes mean fewer unhappy employees in an HR or payroll specialist’s office. With accurate, dependable compensation, your staff can be free to focus on completing the work they signed up for.
Manage Employee Benefits
Some payroll apps let your staff sign in to a web-based interface to see and manage all their benefits. This can include health and dental insurance, 401(k) contributions, and additional perks like vendor discounts. When employees can see what the company is providing them besides a salary, it creates transparency. Self-service portals give workers a sense of control and reduce the time they have to spend contacting HR with questions.
With the ability to see the costs of different benefit plans and options, your staff can make informed decisions. By allowing employees to make changes to benefits online during open enrollment or when a qualifying event happens, you’ll reduce paperwork. Removing layers of red tape makes staff on both sides of the fence happier. HR and management won’t be buried in clerical tasks, and workers won’t have to wait for changes to go through.
If your company partners with other businesses to offer perks and discounts, some automated solutions can manage these as well. Employees can log in and see a list of where they can save on things like gym memberships and travel. They can click on the offers to learn more and claim discounts.
When workers discover all the ways an organization helps support their quality of life, they’re more likely to remain committed.
Provide Financial Wellness Education
Payroll solutions can be more than a convenient way to pay employees on time and give them access to benefits. Modern apps are moving beyond the basics by helping staff manage their personal finances. Anxiety and distress over money can sometimes come from a lack of knowledge and access to educational tools.
Financial wellness education can give employees the resources and advice they need to set and track goals. From budgeting to saving for emergencies and retirement, money management techniques can make staff feel more secure. Providing information about how retirement savings work can also reduce misconceptions and resistance to enrolling in your company’s 401(k) plan.
Financial education and counseling can boost work output and results, in addition to employees’ overall happiness. You’ll show that your organization cares about each staff member’s success as a person. You’re not just about ensuring the company performs well but also about your employees’ well-being.
How to Engage Employee Happiness
If someone had the magic bullet for making every worker happy, there wouldn’t be as many studies about employee engagement. That doesn’t mean leaders and business owners are going to give up trying.
Developments and research on personalities and job fit, motivational theories, job redesign, and organizational cultures will likely continue. The debate over what management can do to make employees happier may never reach a definitive conclusion.
As Maslow’s Hierarchy of Needs shows, a lack of financial security can be stressful. When employees are frazzled about how they’re going to make ends meet, they can’t perform. When your staff gets the message that your company doesn’t value their financial wellness, they’ll find an employer who does.
Automating your payroll and employee benefits and providing financial education will show you care about their money and much more.
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Fintech Kennek raises $12.5M seed round to digitize lending
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
Featured Image Credit: Photo from Kennek.io; Thank you!
Fortune 500’s race for generative AI breakthroughs
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
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UK seizes web3 opportunity simplifying crypto regulations
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
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