Why payroll is of utmost importance

Study shows a third of employees would start looking for a new job if they were accidentally underpaid just once.

Why payroll is of utmost importance
It comes as no surprise that accurate payroll is important to employees but many HR professionals might not realize just how badly one slip-up could affect their workforce.

According to a recent survey, 51 per cent of employees would lose trust in their employer at the first sign of payroll issues and over three quarters would inform their colleagues of any mistake.

A financial error could also have a huge impact on employee engagement with 90 per cent of respondents admitting they would feel less motivated to work for the company if they were underpaid and 35 per cent saying they’d seek alternative employment if it happened just once.

Payroll expert Jonathon Dowden told HR Grapevine that there are three things all employers must adhere to if they want to maintain the trust of their workers.

Have the right system

“The first way to reduce mistakes is to ensure you have the right payroll system for your business and that it is up-to-date,” says Dowden.

Educate employees

“Businesses need to make sure that employees know exactly what is required of them in the payroll process,” he continues.

“For salaried employees, this could include ensuring they supply the employer with the right information such as bank details and tax details. For those employees who are paid by the hour, it’s vital they know how to submit their hours and the deadlines they have to meet to be paid.”

Communicate clearly

“Communication is also key,” asserts Dowden. “Employees should be provided with a point of contact should they have any queries or any mistakes occur.  The faster and more effectively queries are answered, the more trust is developed.”

More like this:

MPs slam military’s reaction to sexual harassment

Thinking about firing someone senior? Wait until winter… 

Goldman Sachs eases up on interns – sort of 

Recent articles & video

Medical costs expected to fall in Canada in 2024: report

4 in 5 employers unhappy with CEBA changes: Report

Pharmacist suspended for alleged sexual abuse under Alberta Health Professions Act

Game-based learning: Could it work for your organisation?

Most Read Articles

Canadian employers planning smaller salary increases for 2024: Report

Which 5 provinces are raising the minimum wage Oct. 1?

Meta rehiring staff after massive job cuts: reports