Small business employees show little tolerance for payroll errors 

More than a third (35 per cent) of employees say they would look for a new job if their employer paid them incorrectly just once, research finds.

More than a third (35 per cent) of employees say they would look for a new job if their employer paid them incorrectly just once, research finds.

In addition to those who would look elsewhere for employment at the first sign of payroll issues, 51 per cent agree it would cause them to lose trust in their employer and half go so far as to admit payroll errors would cause them to resent their employer.

Staff morale could also be at risk, with 44 per cent of respondents revealing that the prospect of being paid late or incorrectly would make them enjoy their job less.

Jonathan Dowden, payroll expert at Sage UK says, ‘Many small businesses see payroll as a back-office process that doesn’t necessarily affect business performance. These findings challenge that way of thinking by showing that payroll can have an immediate effect on staff job satisfaction with just one misstep, and could even jeopardise recruitment.

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‘Payroll is something employers simply must get right. With a clear potential to transform staff morale, influence employee engagement and make an employer more appealing to current or future talent, it should be brought out from the shadows and into the spotlight for businesses.’

Sage’s research finds payroll errors could be a thorn in businesses side when it comes to staff satisfaction and recruitment. More than three quarters (77 per cent) of respondents state they would tell other people if they had been paid incorrectly, while nine in ten respondents would be less inclined to want to work for a company or apply for a job if they heard about them paying people late or incorrectly.

With nearly one in four people (22 per cent) reporting they have been paid late or incorrectly in the last 12 months, this should motivate companies to look after their payroll and put it front and centre of their business, the company says.

Whether running payroll themselves or outsourcing, businesses remain liable for their staff’s pay meaning businesses simply cannot risk payroll going under the radar until something goes wrong, adds Sage.

SmallBusiness.co.uk has teamed up with Intuit Quickbooks to help you find the right Payroll software for your business. To find out more about getting your payroll and business finances all in one place, click here

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