Pay code names are like an exceptional file archive. They are easy to understand at a glance, effortless to remember and leave little room for confusion or error. And, most importantly, helps maintain your continued compliance with labor regulations.
When businesses adapt to new working realities, accuracy, and efficiency at every level of operation are necessary. Now is an opportune time to reevaluate the working order of even the most basic workforce management processes, including pay codes.
Reasons to Restructure Your Pay Codes
Consistency is the key to operational success but needs to evolve with time. Especially now, given rapid change, it is crucial to optimize rules and conventions across even the most long-standing, essential processes to ensure continued strength.
Here are just a few of the many reasons you may find the need to reexamine your current pay code naming practices:
1: Current pay codes require frequent clarification from payroll and accounting
2: Current pay codes draw frequent pay stub questions from employees
3: You have implemented more than one code for the same or similar purposes, or there is significant crossover in code usage (demanding stronger differentiation
4: Your organization faces possible changes to employee classifications or is continually shifting workforce balance between fulltime, part-time and contractors
5: You have amassed many pay codes that are no longer in use or maintain outdated conventions
Effectively, your pay codes should operate as a shorthand for efficiency and expediency in pay procedures, all while minimizing the risk of noncompliance or workforce dispute due to errors in the application.
Uncover Best Practices for Pay Code Naming
There are many ways to create strong naming conventions that last, and that helps prevent procedural hiccups. It all starts with understanding the full scope of your pay code needs, from worker classifications to types of paid and unpaid absences, any scaled compensation (e.g., overtime) requirements, along with any geographic differences.
It is also important to know the limitations of Kronos code naming capabilities, primarily the exclusion of special text characters. However, strategic capitalization can help you achieve greater clarity in your naming in place of special characters.
For more specifics on pay code naming best practices, please consider these 15 suggestions for creating strong, custom conventions for naming new and renaming old Kronos pay codes.