A Study on Payroll Processing and Employee Satisfaction in Construction Industry

Abstract

Payroll processing is a fundamental function in any organization, as it directly influences employees’ financial stability, job satisfaction, and overall performance. It involves a series of structured activities such as maintaining employee records, monitoring attendance, calculating wages, processing overtime, and applying statutory deductions including Provident Fund (PF), Employee State Insurance (ESI), and income tax. In addition to these, payroll also includes bonuses, incentives, and other employee benefits. In labour-intensive industries like construction, payroll processing becomes more complex due to the presence of a diverse workforce, varying wage structures, and multiple project locations. Employees may include permanent staff, contract labourers, and daily wage workers, each requiring different methods of payment and calculation. This study aims to analyze payroll processing practices and their impact on employee satisfaction in URC Construction Private Limited. The research adopts a descriptive design and collects primary data from 146 employees using a structured questionnaire. Secondary data is obtained from books, journals, and company records. Statistical tools such as percentage analysis, regression, ANOVA, and Chi-square are used for data analysis. The study finds that payroll factors such as salary timing, accuracy, transparency, overtime payment, and HR support significantly influence employee satisfaction. However, issues such as delays in salary, lack of clarity in payslips, and ineffective grievance handling reduce employee trust. The study concludes that improving payroll systems through automation, transparency, and communication can enhance employee satisfaction and organizational efficiency.