Financial wellbeing | 1 in 5 Brits quit their job over poor payroll

1 in 5 Brits quit their job over poor payroll

One in five (21%) Brits have quit their job over poor payroll experiences, new research has found.

The study, commissioned by Zellis and carried by an independent research firm, revealed that the main reasons for employees switching roles was due to late or inaccurate pay from their employer. When the figures were scaled up to a national level, this equated to almost seven million employees who were affected by poor payroll processes.

The survey of 2,000 UK employees found that 60% of workers identified mistakes on their payslips while 39% said that they had been paid late. This left some employees feeling as though their employer wasn’t bothered about their financial wellbeing (48%) and this hampered their productivity whilst at work (25%).

As a result of these late payments, 37% of employees recalled missing payments on their debit cards, while 31% were forced into their overdrafts and 26% incurred unnecessary bank charges. So, it severely impacted their financial wellbeing.

But who is responsible for ensuring that payroll activity is accurate? The study confirms that this lacks a concrete answer. 47% of survey respondents believed that it was a shared responsibility with their employer, while 44% believed the responsibility should solely lie with the employer.

Helen Hargreaves, Associate Director of Policy at the Chartered Institute of Payroll Professionals (CIPP), commented: “These results show that when payroll departments are unable to pay staff accurately and on time, the impact is not only felt on the wellbeing of employees, but on the business as a whole.

“However, the responsibility is shared between employers and employees. Employees play a significant role in providing the payroll department with accurate and timely information; without it, the payroll department can’t fulfil its core objectives.”

John Petter, CEO of Zellis, concluded: “Our research dispels the myth that payroll doesn’t have a strategic impact on businesses. Contribution to employee churn, a reduction in engagement and a negative impact on productivity all hit a business’s bottom line. Add to this the financial and reputational risk of legislative non-compliance, and it’s clear that payroll should be a Board-level discussion.”

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Comments (1)

  • Clive Taylor
    Clive Taylor
    Wed, 4 Sep 2019 12:18pm BST
    Absolutely fundamental to pay your employees accurately and on time. It is top of our objectives at LitePay, that is why we use the best payroll professionals and the very best payroll software.

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