How Paycom Supports Financial Wellness Through Pay Literacy

Getting paid is just the start To make smart financial choices employees need to understand their pay Yet various professionals lack this clarity According to The State of Financial Well-being summary by BrightPlan only of employees have basic financial literacy That confusion fuels financial stress However financial wellness goes beyond knowledge it s about applying that knowledge to build stability and reduce stress A PwC survey exposed that of U S workers assessment feeling moderately to highly stressed about their finances with living paycheck to paycheck This stress follows employees into work impacting their productivity and engagement Particular of the consequences include Lower power and engagement A weaker sense of belonging Less alignment with company values Reduced pride in their employer Increased likelihood of seeking new opportunitiesIn a new episode of Paycom s HR Break Room podcast Jean Chatzky bestselling author and former NBC Nowadays Show financial editor spoke about the keys to achieving financial wellness Specifically she discussed the concept of Pay Literacy which is the ability to understand every component of your paycheck including How earnings are calculated What deductions are taken How benefits impact take-home pay What each line item represents How compensation is structuredJean emphasized how Pay Literacy is crucial for reducing financial stress and empowering employees to take control of their finances It s not just about understanding the numbers it s about applying that understanding to feel more secure and confident in managing your money The Growing Demand for Financial LiteracyProviding financial-related support and development is crucial for preventing burnout turnover and avoiding toxic work values However a Pollfish survey commissioned by Paycom identified only of professionals say their employer offers financial wellness programs A separate March survey revealed that just feel confident in their understanding of payroll tax deductions A December Pollfish survey detected that more than in employees experienced a payroll mistake in These errors don t just frustrate staff they re costly for businesses too A IRS scrutiny determined that of employers make payroll mistakes and it assessed billions in collections and penalties The Response Pay Literacy and Self-Service PayrollPaycom s intuitive payroll tools foster greater pay literacy by providing employees access to paycheck information and deductions This access allows employees to better understand their earnings deductions and benefits reducing stress and enabling informed financial decision-making Through Paycom s program employees gain real-time visibility into how their pay is calculated empowering them to identify and resolve discrepancies before payroll is processed This supports the financial wellness Jean Chatzky talks about helping employees clearly understand their pay so they can spot and fix issues early cutting down on financial stress By streamlining this process Paycom s cure not only meets group members expectations but also reduces HR s administrative burden Automation allows HR to focus on higher-value priorities such as employee engagement and compliance rather than spending time on manual material entry In fact a Forrester Consulting examination commissioned by Paycom detected that automated payroll system can cut payroll processing labor by That means fewer errors fewer headaches and a more empowered workforce Now that they have a better picture of their paycheck they can use this information to fix payroll errors in advance Beti Paycom s industry-first self-service payroll system allows employees to verify their payroll content before processing reducing mistakes and improving accuracy It automates calculations flags missing approvals and provides real-time visibility for HR minimizing post-payment corrections Paycom s unified application ensures Beti integrates seamlessly with other HR functions creating a smooth and efficient payroll experience Time-Off Requests and the award-winning GONE automatically adjust balances and track approvals to payroll Time and Attendance syncs approved hours worked directly with payroll Benefits Administration sends employee selections and deductions to payroll without manual entry Pay literacy is a critical step toward financial wellness As Jean Chatzky wisely puts it Getting started is the first step A multitude of people avoid managing their finances because they re afraid of making mistakes but understanding their pay is an empowering first step By improving pay literacy employees gain clarity about their earnings deductions and benefits reducing stress and strengthening their sense of financial control With Paycom s easy-to-use platform employees can take charge of their financial journey This leads to improved engagement greater financial safeguard and a more productive workforce overall The post How Paycom Supports Financial Wellness Through Pay Literacy appeared first on Rough Draft Atlanta