A new study from IRIS Software Group (IRIS) has revealed that the UK small to medium-sized businesses (SMEs) are struggling to manage their payroll for staff, which is affecting their performance.
The research conducted by one of the UK’s largest software companies with the help of pollsters YouGov found that almost a third (29 per cent) of businesses owners think managing payroll requires too much of their time.
It also revealed that a quarter of those surveyed said that time spent handling their payroll each month was impacting the business’s overall performance.
The loss of this time meant that a further quarter admitted that they struggled to keep up with other staff demands, while 26 per cent of business leaders believe that the amount of time spent managing payroll is preventing them from developing business opportunities.
When comparing payroll now to pre-pandemic requirements, 38 per cent of owners think that payroll is more stressful now.
However, despite the challenge, just under half (48 per cent) of those questions had made changes to their payroll process in the last nine months to free up more time to focus on stabilising and growing their business.
Those who were required to furlough staff were more likely to make changes though and of these businesses, 59 per cent changed how they manage their payroll.
Of these, one in five changed their payroll system entirely, while 17 per cent have started outsourcing their payroll to a trusted advisor.
Despite the strain on business performance, 81 per cent of those surveyed said that the correct processing of their payroll directly impacts their employee’s happiness and so it remained a priority for the business.
We have helped many clients with their payroll systems, processes and compliance. To find out how these businesses have benefitted from our advice, why not read some of our case studies here.
If you would like help managing your payroll, so you can focus on the overall performance of your business, please contact our Payroll Manager Steve Milne or call 01494 552 100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at time of publishing 29th January 2021.