MHR, a provider of HR, payroll, and finance software, conducted research that found that 88 per cent of UK businesses experienced payroll errors in 2022, resulting in employees either not being paid accurately or receiving late payments.
Just over two-fifths of businesses (43 per cent) cited inaccuracies as the most significant challenge they face in their payroll operations, according to the study.
Additionally, more than half of the businesses (53 per cent) listed the investigation and correction of errors as the most time-consuming aspect of their payroll procedures.
The impact of these errors on productivity cannot be underestimated, with 80 per cent of respondent businesses spending at least 12 hours per month on correction efforts.
This amounts to 144 hours per year, or 18 days of payroll staff time wasted on error correction.
Half of the businesses surveyed (50 per cent) recognised that adopting new digital payroll technologies could significantly improve their existing payroll practices and reduce the occurrence of errors.
However, the primary reason cited for not implementing these changes was a lack of resources (46 per cent).
Using an outsourced payroll service is giving many businesses access to the latest payroll technology, without the cost associated with investing in software and training.
If you would like help managing your payroll, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 14 April 2023.