1 in 5 Quit After Poor Payroll Experience
According to recent research, more than 20% of people, that’s 1 in 5, have quit their jobs after receiving late and/or inaccurate payment. Roll this statistic out across the nation and that’s nearly 7 million employees.
Poor payroll leads to unhappy employees
Of the 2,000 people surveyed, an incredible 60% said they had spotted mistakes on their payslips and 39% had not been paid on time. This not only left them feeling uncared for, nervous and stressed, but also put them in serious financial difficulty. Indeed, many reported missing direct debits, breaking into their overdraft, having to pay bank charges and a damaged credit rating. As poorly managed payroll can have such severe consequences, it’s hardly surprising that 1 in 5 employees look for a new job following a bad experience.
The study went on to reveal that 47% of people didn’t believe their employer was concerned for their welfare following a poor payroll experience, no doubt a large contributing factor to why people consequently move jobs. Such worry naturally leads to heightened stress and uneasiness, sleepless nights and an increased susceptibility to illness. Not good for businesses looking to increase productivity and employee retention. Companies therefore need to ensure their payroll is completed to the highest level of accuracy possible.
Professional payroll services is the answer
The associate director of the Chartered Institute of Payroll Professionals (CIPP), Helen Hargreaves, said ‘payroll processing is becoming increasingly complex, with additional duties introduced every year. It’s crucial that payroll practitioners keep themselves up to date with all the changes to legislation.’ However, this is not always an easy task when payroll is administered by a member of staff who isn’t a dedicated payroll professional. As this is often the case, it seems that employers continue to underestimate the importance of delivering accurate and timely pay for their employees’ happiness and wellbeing.
It’s not just their staff that face serious consequences. It seems organisations forget that payroll administration is a crucial factor in ensuring they are compliant with legislation and tax rules. Ms Hargreaves goes on to add that ‘the increased chance of breaching employment legislation and, consequently, facing severe penalties and reputation damage, is another significant risk of running an inefficient payroll system.’ A dire warning indeed.
Keep your employees happy and your company safe by outsourcing your payroll responsibilities to the professionals at Essential Payroll. We offer payroll services that are tailored to your business to ensure accurate and timely payment and HMRC and tax compliance. To learn more, please don’t hesitate to get in touch with us today on 02382 023223.