Payroll errors could be costly for employers
19 June, 2015
The payroll department could be the lynchpin for talent management and employee engagement in the UK’s small businesses, according to new research from Sage UK.
Sage surveyed more than 1,000 consumers with more than a third (35 per cent) of respondents saying they would look for a new job if their employer paid them incorrectly just once.
In addition to those who would look elsewhere for employment at the first sign of payroll issues, 51 per cent agreed it would cause them to lose trust in their employer. Half went so far as to admit payroll errors would cause them to resent their employer.
As for staff morale, 44 per cent of respondents revealed the prospect of being paid late or incorrectly would make them enjoy their job less.
“Many small businesses see payroll as a back-office process that doesn’t necessarily affect business performance,” said Sage UK.
“These findings challenge that way of thinking by showing that payroll can have an immediate effect on staff job satisfaction with just one misstep, and could even jeopardise recruitment.
“Payroll is something employers simply must get right.
“With a clear potential to transform staff morale, influence employee engagement and make an employer more appealing to current or future talent, it should be brought out from the shadows and into the spotlight for businesses.”
With nearly one in four people (22 per cent) reporting they have been paid late or incorrectly in the last 12 months, this should motivate companies to look after their payroll and put it front and centre of their business.
At Watson Buckle our fast, efficient and cost-effective payroll bureau provides a tailored service to businesses of all sizes, regardless of how often their payroll is run.
If you would like to find out more about our dedicated payroll services, please contact us.