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Human resource service knowledge article

Compensation and Payroll: Setting the Stage

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Before hiring your first employee, it’s beneficial to have your company’s basic payroll infrastructure in place. At first glance, managing payroll may sound as simple as cutting a cheque every second week ¬– but dig deeper and you’ll soon realize there’s far more to streamlining payroll operations than simply issuing regular paycheques.

When dealing with matters of compensation and payroll it is vital to retain the services of qualified professionals to help start you on the right path. The world of payroll is rife with rules and regulations, many of which are ever-changing. Save yourself the time and headache and reach out to an experienced HR Services Consultant and, depending on your needs, a Bookkeeper or Accountant too.

Building the Foundation: Compensation Structure

The first step is to sit down with your HR Services Consultant to build a clear Compensation Structure. Look ahead at the positions you foresee being filled in your growing company in the short and medium term, and work with your HR Services Consultant to create pay ranges for each position. By doing so, you will be better equipped to manage labour costs which are often one of the largest business expenses that a company must handle. Plus, you can objectively explain to inquiring employees how their individual pay rate was determined.

In addition to a carefully designed Pay Plan to create guidelines for Base Pay and Bonuses, Honiva Consulting Ltd. can also help employers with Labour Cost Modeling. That initiative will allow you to calculate the total cost per hire and enable to you develop more accurate budgets for your labour costs.

Next Step: Setting Up Your Payroll Processes

As your company grows, you will need to designate someone who will be responsible for handling payroll processing activities. This role can be fulfilled by your Bookkeeper, Accountant, or Payroll Administrator.

Prior to engaging a payroll processor, Honiva Consulting Ltd. can help you map out the payroll processing procedures to streamline the collection of banking details, work hours, and time off requests that can impact payroll administration. We can also create educational materials for employees detailing your company’s payroll cycles and pay dates, as well as the deductions that employees can expect from their pay cheques.

If needed, our HR Services Consultants can provide support to you in selecting the appropriate payroll software package for your business to automate payroll processing tasks.

Here to Help

We can be reached for a free confidential consultation at +1-403-470-5350 or [email protected] For further details on additional HR service offerings, please visit our website at https://www.honiva.com or follow along for more informative tips by joining us on LinkedIn, Facebook, Twitter, or Instagram. We also run a complementary LinkedIn and Facebook group called “Insights by HonivaHR” where you can access free information on how to become a more empowered employer. Or you can sign-up for our quarterly newsletter to have help sent straight to your inbox from our company homepage.

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