![[UK] 88% of businesses affected by regular payroll errors](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Payroll-Business-Finance-Conce-468224363_1200x.jpg?v=1677230680)
A new study has revealed that payroll errors are prevalent among UK businesses today, with almost all participating organisations experiencing regular errors, Personnel Today reports.
The study was conducted by HR, payroll and finance provider MHR. It found 88 per cent of businesses suffered payroll errors in 2022 that resulted in employees not being paid correctly or on time.
As a result of this, 80 per cent of companies reportedly spent 12 hours or more each month on payroll error correction. Half of the respondents told researchers that they believed updating their payroll systems would improve matters.
More than half (53 per cent) reported that investigating and correcting payroll errors was the most time-consuming element of their work.
Respondents believed that the adoption of new, digital payroll technologies would solve many of their issues, however, just under half said that lack of resources was preventing them from accessing such tech. When told they could save 18 working days of payroll time per year with better tech, this segment reportedly said they were likely to look again at investment in better systems in 2023.
Responding to the findings, Anton Roe - CEO at MHR - said that payroll mistakes could make it more difficult for employees to negotiate rises in the cost of living.
Mr Roe said, “Payroll errors represent not just a costly mistake to businesses, or a barrier to their growth, but also a real threat to employees up and down the country who will be relying on accurate pay to help navigate the ongoing cost of living crisis.
“While the scale of the problem – 88 per cent of businesses suffering payroll errors – is deeply troubling, I am heartened by the finding that half of businesses have rightly identified new payroll technologies as a means of improving their existing operations. By shining a light on this issue, and the fact that businesses are losing as many as 18 days per year to such errors, we hope to see more businesses reconsidering their position on technology adoption in 2023.”
Source: Personnel Today
(Quote via original reporting)
A new study has revealed that payroll errors are prevalent among UK businesses today, with almost all participating organisations experiencing regular errors, Personnel Today reports.
The study was conducted by HR, payroll and finance provider MHR. It found 88 per cent of businesses suffered payroll errors in 2022 that resulted in employees not being paid correctly or on time.
As a result of this, 80 per cent of companies reportedly spent 12 hours or more each month on payroll error correction. Half of the respondents told researchers that they believed updating their payroll systems would improve matters.
More than half (53 per cent) reported that investigating and correcting payroll errors was the most time-consuming element of their work.
Respondents believed that the adoption of new, digital payroll technologies would solve many of their issues, however, just under half said that lack of resources was preventing them from accessing such tech. When told they could save 18 working days of payroll time per year with better tech, this segment reportedly said they were likely to look again at investment in better systems in 2023.
Responding to the findings, Anton Roe - CEO at MHR - said that payroll mistakes could make it more difficult for employees to negotiate rises in the cost of living.
Mr Roe said, “Payroll errors represent not just a costly mistake to businesses, or a barrier to their growth, but also a real threat to employees up and down the country who will be relying on accurate pay to help navigate the ongoing cost of living crisis.
“While the scale of the problem – 88 per cent of businesses suffering payroll errors – is deeply troubling, I am heartened by the finding that half of businesses have rightly identified new payroll technologies as a means of improving their existing operations. By shining a light on this issue, and the fact that businesses are losing as many as 18 days per year to such errors, we hope to see more businesses reconsidering their position on technology adoption in 2023.”
Source: Personnel Today
(Quote via original reporting)