At the end of the last day of the pay period, payroll must, without fail, be processed. The result is a definitive line item in the general ledger. It requires no explanation. It’s absolute, something the accountants understand. And employees understand too. Miss payroll, or get it wrong, and your employee sentiment scores will nosedive. As if this weren’t enough, however, there is much more to payroll; there are, in fact, two sides to payroll—the concrete and the abstract. Both are important.
Payroll is more than a number
We at 3Sixty Insights speak of the two hemispheres of human capital management. The term we use for anything in the management of an organization’s employees that easily translates to a financially quantifiable number is “concrete HCM.” That would make payroll the most concrete aspect of HCM.
Continue reading here: How Payroll Can Provide Concrete and Abstract Value to Organizations