Is your business’ payroll affecting retention rates?

Mistakes or inefficiencies in your company payroll could be having a negative effect on retention rates and employee wellbeing.

A recent study conducted by an independent research firm and commissioned by Zellis, found that 21% of Brits have changed jobs after being paid late or inaccurately by their employer.

The research found that a shocking 60% of employees have found mistakes on their payslip and 39% have been paid late on at least one occasion.

Employees rely on their employers to pay them both accurately and on time so that they can meet their own financial commitments. If employers fail to meet these expectations it can cause employees to miss important payments, incur charges, get into debt and feel unnecessary upset, stress and worry.

Out of the employees surveyed who had experienced problems with their payroll:

  • 48% felt that their employer did not care about their wellbeing.
  • 47% had felt undue levels of stress and worry.
  • 40% had felt at risk in their financial situation.
  • 25% had become less engaged and productive at work.

These figures clearly show that an unprofessional and unreliable approach to company payroll is detrimental to both employer and employee.

Employees who are not paid correctly by their employer can feel undervalued and are at risk of becoming demotivated and less engaged, eventually resulting in them leaving the business.

Businesses that struggle with their payroll are at risk of fostering an unhappy and unproductive workforce and losing their top talent.

Payroll has become increasingly complex and time-consuming over recent years with the introduction of new employment legislations like real-time information and auto-enrolment.

If your company payroll is letting you down, it could be time to outsource the job to an accountancy firm.

Speak to our team here at Michael Bell & Co about our payroll services by giving us a call on 01484 690 730.