Payroll Management

What is payroll management?

Payroll management is one of the ongoing HR management issues that design, develop and maintain relevant payroll management systems. Its main purpose is to determine the wage level, combination and structure of employees, to motivate employees to a better work performance, to maximise manpower utilisation, thus promoting the business goals.

The importance of payroll management

The payroll management of any organisation generally needs to achieve three major goals at the same time, which are “fairness”, “effectiveness” and “legality” (that is, whether to give corresponding overtime allowances, statutory holidays, benefits and other non-economic compensation according to the law) .

As business operations have more and more requirements for payroll management, it has more restrictions. When dealing with these HR issues, in addition to considering the economic affordability, internal fairness and Employment Ordinance, employers or HR also need to combine the development strategies of different periods, internal talent positioning, external talent market, and payroll strategies of competitors and other factors.

Case analysis of payroll management

How to make employees believe that the incentive mechanism of the enterprise is reasonable and fully comply with the payroll management system is one of the important signs of successful payroll management.

Take the payroll management of company B as an example. Employees of company B will pay attention to their payslip at the beginning of each year. How well they worked last year can be reflected through wage increases. The company’s internal payroll policy is very complicated, which is directly related to positions, work performance, but with education allowances and seniority allowances excluded.

An excellent resume may be a good start, but it doesn’t guarantee wages. Because of this, Company B has gradually developed a high-performance culture from internal payroll management.


The accurate business analysis reports can often make payroll data more valuable and help make the best business decisions.

Workstem’s HR data analysis function can compare the company’s past financial data and imported market data to help employers gain real-time insights into the changes of costs, examine and predict labour cost trends, furthermore, to adjust business strategy reasonably and realise the maximum output of employee value.