Workforce compliance

8 lessons payroll can learn about accuracy from 30 years of OHS

8 lessons payroll can learn about accuracy from 30 years of OHS
Tom McLeod
By
Tom McLeod
30
minute read
November 11, 2024
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Employers bear two profound responsibilities: to keep their employees safe and to ensure they are paid accurately.

The impressive 30-year journey of occupational health and safety (OHS) that has led to it being a central part of the workplace offers valuable insights. It illustrates how payroll accuracy, too, should be prioritised and embedded in organisational culture to foster a safe, transparent, and compliant environment—where significant progress is still needed.

Here are eight key lessons payroll accuracy can draw from OHS’s evolution.

1. Prioritising employee well-being

OHS has taught us that focusing on individual health drives meaningful change. For instance, the ban on smoking in public spaces marked a pivotal shift in prioritising employees’ physical well-being. This focus has since expanded to include psychosocial risks such as stress and burnout. Similarly, payroll errors—such as missed or inaccurate payments—can create financial strain and stress that impact employees’ mental health. Just as OHS initiatives were motivated by clear health risks; payroll accuracy should be driven by its direct effect on employees’ financial well-being and psychosocial safety.

2. Creating a common language

Having well-defined terminology, like “Occupational Health and Safety,” has supported clear communication and consistent training within its equally well-known abbreviation — OHS.  People understand what it is and what is required. In payroll compliance, however, emotive terms such as “wage theft” tend to emphasise the issue rather than the proactive steps needed to prevent underpayment. Establishing a universally accepted language will help create a shared understanding that highlights the positive measures required to achieve payroll accuracy.

3. Promoting visibility and transparency

High-visibility clothing was introduced to improve workers’ safety by making workers more visible in high-risk areas. In a similar way, payroll accuracy should be a visible and embedded part of organistional culture. For example, organisations publicly committing to accurate pay practices signals accountability and trustworthiness.

4. Fostering collaboration with stakeholders

OHS improvements often resulted from collaboration among unions, regulators, and employers, driving long-lasting change. Payroll accuracy can benefit from the same collective effort, involving these key stakeholders and beyond, to establish best practices and set a universal expectation of accurate pay. This collaborative approach will help shape payroll accuracy as a standard practice across industries.

5. Connecting payroll accuracy to leadership goals

Linking OHS outcomes to executive incentives has proven effective in motivating leadership to prioritise safety. Payroll accuracy would benefit from similar leadership commitment, with incentives tied to accurate payroll practices. To adapt a well-known management phrase: 'what gets incentivised, get done'.

6. Measuring and reporting for accountability

Systematic measurement and reporting are foundational to OHS, enabling organisations to identify gaps and drive continuous improvement. Payroll accuracy also requires similar transparency, with employers providing real-time payroll data accessible to both employees and stakeholders.  

7. Building a culture of compliance through education

OHS has achieved cultural shifts by embedding safety awareness within organisations. Payroll compliance needs a similar approach, emphasising education and accountability. Just as the “see it, say it” approach has proven effective in addressing workplace safety, sexual harassment, discrimination and bullying, encouraging employees to report potential payroll inaccuracies can help proactively address potential compliance issues before they arise.

8. Putting people first

While technology enables scale, it alone cannot achieve payroll accuracy. Just as safety technology is only effective within a safety-oriented culture, payroll accuracy demands a human-centered approach. Technology should support, not replace, the human elements in payroll accuracy, with a coordinated approach across payroll, HR, and legal departments. Breaking down silos enhances compliance, ensures accuracy, and reinforces commitment to employee welfare.  

The lessons that Occupational Health and Safety (OHS) has provided to corporations extend well beyond safeguarding employees—it serves as a powerful model for change management, showing that even complex issues can be systematically addressed.

Those tasked with ensuring payroll accuracy would benefit greatly from examining OHS’s accomplishments and applying its principles proactively. One thing is clear: we should not afford to wait decades for payroll accuracy to reach acceptable standards.

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