Payroll predicaments: one in five employees paid late following tech issues

  • 44 per cent of European employees have been paid late, while 48 per cent have been paid incorrectly
  • UK employers are worst offenders, with 61 per cent of British workers reporting incorrect pay
  • One in five cite payroll tech errors
  • Almost half consider jumping ship after delayed pay

PAYROLL technology failures are among businesses’ leading issues when it comes to paying employees on time, a study has revealed.

The European survey looked at organisations with between 10 to 10,000 employees across six countries, including the UK, France, Austria, and Germany.

It found that UK employers were the number one worst offenders when it comes to payroll punctuality, with 61 per cent of workers reporting incorrect pay at some point in their careers.

Across all countries, the research found that 44 per cent of European employees have been paid late at some point in their working lives. Of those, 48 per cent had been paid incorrectly, too.

European employees experiencing a delay in payment were waiting on average between one-and-a-half to two weeks to be remunerated, the report said.

The survey also revealed that 79 per cent of employees that had been paid incorrectly were forced to identify the issue themselves. Over one in five (23 per cent) of those employees cited payroll tech errors as the primary reason for late or incorrect payments. A further 61 per cent cited poor management, while 33 per cent blamed delayed payments on financially unstable bosses.

Of those who were paid late, 44 per cent of respondents had considered leaving their jobs, while an overwhelming 88 per cent said late payments had left them with a negative perception of their employer.

Katie Hewlett, Payroll Manager at Moore Thompson, said the study highlights the serious impact late payments can have on an employee.

“With almost half of employees considering quitting their jobs, employers should keep payroll at the forefront of their managerial duties.

“If an employer is aware that they have delayed a payment, whether intentionally or through a system error, they should take steps to immediately remunerate an employee and cover any charges they may have incurred as a result of the late payment.

“As we find with the majority of our clients at Moore Thompson, outsourcing your payroll to a professional provider often works out to be the most cost-efficient and beneficial option.”

Keep track of your legal obligations by visiting www.moorethompson.co.uk. For more information on any of the articles discussed in Payroll, contact one of our payroll & HR experts here.