Hrmaster Hats Series

Hat 9- The Payroll Professional as the moral compass

The litmus test

Moral duty

It often starts with a small decision. We agree to something that falls within a “grey” area, legally or ethically. Decisions that may be marginally legal, but are in principle, unethical. Then it is easier to choose the decision with least resistance. And before we know it, we have “crossed the line”, and it is too late to turn around and change the course of events.
To compound matters, we might become silent accomplices, if we don’t speak up and challenge management on these types of decisions. The Payroll professional cannot stay quiet on moral and ethical matters. Our position as moral compass, and trusted professional, is at stake.

Crossing that line

Once the line has been crossed, it is very difficult to rebuild our purity and reputation.
Please note; I am not referring to obvious, and blatant fraud, or other illegal actions. I mean those decisions that evoke the faintest feeling of unease or unhappiness inside us. It is these issues (categorized as grey areas) that demand of us an ethical assessment of the situation.Your opinion matters

This way we can know what the right decision ought to be. It is here that the Payroll professional’s job comes to the fore. We are called to provide up-front ethical leadership. To serve as a litmus test on borderline, grey areas.

Legally right, or morally right

A decision that is legal, is not necessarily morally right. For the Payroll professional, this is often the most demanding aspect of decision-making. Sometimes the easiest option is not the right option. And decisions like these cannot be ignored. Here we as Payroll professionals are required to stand firm, knowing that while the decision being considered might be legal, it is not morally right at all. Here we are obligated to listen to our conscience and apply the “litmus” test to help with the decision.

An example: different salaries, same position.
An excellent example that comes to mind involves discriminatory remuneration practices. Salaries for employees doing the same job often varies. Despite both employees performing the exact same set of tasks and having the same job description. They produce the same (or similar) sets of results, ….yet they earn vastly different salaries!

Example — different salaries, same position?

Ethical LegalAn excellent example that comes to mind involves discriminatory remuneration practices. Salaries for employees occupying the same job role oftentimes varies. Yet, both employees are performing the exact-same set of tasks and job descriptions. They produce the same (or very similar) sets of results, …yet they earn vastly different salaries!

In this case, although this may not be an illegal practice (based on the breach of some or other labour law). However, it certainly does constitute a morally reprehensible practice (based on the simple argument of moral ethics). This, and many other examples, are the kinds of questions that all Payroll administrators would do well to regularly ponder on and/or raise with their superiors.

 

The primary, overriding question

What ought we, the payroll professional, to be doing about this?

Here are some suggestions:

  • Gather all relevant data to support your argument towards making a morally astute decision.
  • Seek to engage with your line manager in a private meeting. Do not openly dispute the merits of the issue or contest the decision with an audience.
  • By carefully explaining the underlying rationale and showing the reasons you think a particular issue is morally and/or ethically challenging, you can calmly state your case.
  • Be ready to clearly present an alternative, suitable solution that you believe to be the right decision.
  • Expect, with positive intention, to receive a revised final outcome that (fairly) takes your positive contribution into account.

Payroll professionals the litmus test

Remember that in Speak out ethicallythese types of situations, management is well within its right to insist upon only that which is legal as the basis for decisions. The job, however, of all proud Payroll professionals, is to be the moral compass, pointing management in the right ethical direction. To make our voices heard, calmy and rationally.

Therefore, the Payroll professional is the litmus test representing the values of an organisation. We are called to be brave and ethical, speaking out when necessary. Building on our reputation as the moral compass.

Coming next…Hat 10: Why the Payroll Department should be appreciated

Hrmaster Hats Series

Hat 7- The Payroll Professional as Counsellor

Payroll administrators handle private, often very sensitive information. For this reason they are usually trusted by the staff of the company. They like to share their serious concerns, and trust us to give wise advice. Sometimes listening is enough. Or we will explain to them what the company policy is, and let them make up their own minds. Other times, when we give them advice , they go away knowing that we have their best interests at heart. We care. We want them to make the right decision. This is one of the roles of a Payroll professional.

Human Resources

On the financial side we might be asked questions like:

  1. What should my travel allowance be?
  2. What about medical aid?
  3. What plan should I choose?
  4. Pension fund decisions are made with advice from the Payroll administrators.
  5. We give advice on budgeting and how to balance a budget.
  6. We give advice on how to deal with garnishee orders.
  7. Advice when the Receiver of Revenue comes knocking? (ITA88 certificate)

Automated payroll

The Payroll professional really is a font of financial information.

So what do you need to know about giving finical advice?

A word of warning:

“To give financial planning advice you need to be a registered financial planner. To give tax planning advice you need to be a registered practitioner.” So please be aware of the regulations, and make sure that you cannot be accused of overstepping the mark. It is good to be helpful, but do so within the boundaries.

In the same way, as we listen to people asking for advice on dealing with garnishee orders, ITA88 certificates, or input on financial issues, make sure you deal with it from a base of Payroll knowledge.

 

5 steps to counselling an employee

  1. Listen carefully to what the employee is saying.
    • Take notes. Show that you are listening by maintaining eye contact, taking notes and above all clarifying your understanding of what is being asked.  Try and separate the facts from opinion. Do not be influenced by emotion.

businessman assessing colleague

  1. Summarise the issue/issues to check your understanding.
    • Briefly summarise the facts and if possible, list the questions or issues that need to be addressed. It is important to reach an agreement that we are all on the same page.
  1. Research the regulations/company policy or the laws of the land.
    • Now present the regulations, company policy or laws that govern the situation. If you know them and have them at hand, do it then. If you don’t, end the meeting and set up another time to continue. It is very important as payroll to base any advice you give on a firm foundation of facts.
  1. Give the employee feedback.
    • Show the employee the feedback and make sure that they understand it and are aware of the foundation that you are basing it on. Clearly explain your recommendations and why you believe the employee should take that route.
  1. Check the employees understanding.
    • Make sure the employee clearly understands what you have told him. We want to avoid the  “I said, you said” situation at all costs. This will seriously impact your credibility.

In all of this, please remember that any advice you give must be defensible when tested, either by management or by another third party. Make sure you keep notes of the interaction – just in case.

Paymaster Payroll software has a section to keep notes on each interaction. You can then upload any supporting documents to the employee’s profile. In this way you, the employee and management, have access to the interaction via the online Payroll platform.

Coming next… Hat 8: The Payroll Professional as Problem Solver