Timely and accurate payroll creates trust between employees and employers, boosting employee engagement, team morale and overall productivity. It also provides financial stability to employees which can ultimately have a positive impact on their performance.
Timely and accurate payroll creates trust between employees and employers, boosting employee engagement, team morale and overall productivity. It also provides financial stability to employees which can ultimately have a positive impact on their performance.
Broken payroll can result in a variety of issues such as:
- Labor hours spent correcting issues
- A decline in employee trust
- An increase in hiring costs for error-related turnover
- Retroactive takes for misclassified employees
What are the implications for employees?
One of the top factors is miscalculated pay, whether this is over or underpaying employees, missing the first paycheck for new hires, or deducting the wrong amount for benefits and other payroll deductions.
Payroll erros can hurt your staff as these miscalculations can cause financial implications such as damaging credit scores, missed penalties and late payment fees on finance plans and credit cards. Payroll is critical to employees with 60% of Americans living paycheck to paycheck, meaning that on-time payments are depended upon. Poor payroll also has damaging consequences on households with debt and those who do not have emergency savings to fall back on.
What are the implications for the company?
Employees can lose trust in their company due to late or short payments. This lack of trust can decrease employee retention rates and increase turnover levels. In turn, the company will be paying hiring costs at a higher frequency. Companies may also find that their financial records are inaccurate, encounter serious consequences such as legal penalties incurred from compliance errors, and can be faced with an increased workload.
Another factor is mis-logged hours which cost you time and can disrupt your budget, which has the power to cause further payroll issues in the following months. This can also be true for lost timecards and timesheets as payroll can be delayed due to incomplete paperwork, missed communications and delayed approval from managers.
How can you make sure your payroll doesn’t fail?
Imagine if you could rest easy without worrying that your payroll could fail…
With As1® you can!
Our global payroll solution creates unity across the company by controlling in-country payroll systems and providers, global automation, and global reporting, It also gives reliable power with its proven mature solution and world-class high-availability hosting. It has the capability to be scaled to hundreds of thousands of employees across hundreds of legal countries, with data security, data protection and GDPR compliance benefits.
Want to find out more about how you can easily unify your global payroll and reduce the chance of payroll failing? Read more here.
