1/3 staff would look to leave over payroll errors

Over half of employees would lose trust in their employer and even resent them if they were underpaid, a new study has revealed.

The findings have said that the payroll department is the fulcrum of any organisation, with staff morale hinging on its effectiveness; 51% said they would lose trust in their employer at the first sight of payroll issues and 35% said they would seek alternative employment if they were paid incorrectly just once.

Over three quarters of respondents said they would inform their colleagues if they were underpaid, while nine in ten would feel less motivated to work for the company. 22% had reported being paid late or incorrectly at some points in the previous 12 months.

Speaking exclusively to HR Grapevine, Jonathan Dowden, a payroll expert at SAGE UK, said the following must be adhered to if trust must be built between employer and employee: “The first way to reduce mistakes is to ensure you have the right payroll system for your business and that it is up-to-date. Communication is also key.