The Perilous Pitfalls of Payroll!
Errors in the administration of payroll can cause all sorts of problems for a business, from affecting cash flow to attracting heavy fines and from damaging employee morale to serious legal implications. The shocking results of a survey from MHR, a leading financial expert, have revealed that payroll errors are far more common than you might imagine...
The study collected data from a large number of different businesses located in the UK and Ireland. More than nine out of ten (91%) of businesses surveyed admitted that mistakes were made in the calculation of payroll every month. Companies with 500 or more employees making such repeated errors could be losing out to the tune of more than £150,000 a year.
The MHR study identified that a key problem is outdated processes of payroll management which, carried out manually, continue to be used by a massive 72% of the companies surveyed. 36% of respondents claimed that using these manual systems represented a major distraction from other important tasks related to their business, with the wasted time and resources further exacerbating the problem.
Errors and inaccuracies in payroll management were found to be having serious negative impacts on the morale and wellbeing of employees. Part of MHR's research involved surveying employees who had received incorrect or delayed wages; a quarter of these employees said that they had found themselves unable to pay bills due to the mistake, with 35% of these employees having to borrow money from other sources to bridge the gap.
Over 50% of the surveyed employees said that, if they experienced repeated errors in the calculation of their wages, they would seriously consider leaving their current position and seeking an alternative company to work for.
90% of the business surveyed by MHR carried out their payroll in house. The survey asked what the businesses thought the best way to improve payroll management would be: half responded that they would opt to outsource their payroll operations.
Bachmann Group provide an industry-leading payroll management service in conjunction with Multiwage, an ultra-reliable payroll bureau which is fully approved by BACS. Our payroll team, which comprises the very best experts in the field, use award-winning, state-of-the-art payroll software to ensure that no mistakes are made, giving you complete peace-of-mind while freeing up your time and resources.
For full details of our effective and efficient payroll management services, please browse our website or get in touch with a member of our dedicated customer service team.
