A recent poll carried out by the Chartered Institute of Personnel Development (CIPD) reports that financial insecurity is affecting people at work, with a quarter of respondents acknowledging that money problems were having a negative impact on their work, and a fifth were having difficulty sleeping due to money worries.
Payroll has often been seen as a quick task something that has to be completed once a month but that won’t take long or that isn’t a top priority but a necessity, after all employees won’t work for free!
It might be that you are a small business and process the payroll at the end of every month on the kitchen table after the kids have gone to bed. Or you tack the responsibility on to an administrator’s role to process and give you the figures for payment. You might even pay extra for your accountant to process the payroll.
All these options are fine, and you may never face any problems. However, payroll issues can occur even in big national firms, and it is important that whoever is processing the payroll knows how to rectify the situation appropriately and in a timely fashion.
Errors in the payroll can have a huge knock-on effect on employee’s monthly payments such as mortgage repayments, bills and even putting food on the table. It was recently reported that employees from a large supermarket chain were having to skip household bill payments, use food banks and take out loans due to payroll errors that left some employees underpaid by some £500 plus.
Even in an economy that is thriving this level of error can be devastating to some especially if they do not have the luxury of savings to fall back on. Finder.com reported that a third of Brits have less than £600 in savings and 41% of Brits don’t have enough savings to live for a month without income.
Therefore, in the current cost of living crisis it is no wonder that employees are struggling with money worries. As an employer recognising these concerns and understanding the importance of your payroll department whether it be in house or outsourced is vital.
You would employ an electrician to ensure your home wiring is safe, by outsourcing your payroll to payroll specialists that live and breathe payroll is a way of protecting your employees from errors that unbeknownst to you could be crippling them financially.
To find out how we can help with your payroll email me at email@example.com