Payroll occupies a unique place in a business. It’s an essential part of any business – employees need to get paid! – but it doesn’t directly contribute to sales or brand awareness. This is why, sometimes, payroll isn’t taken care of properly and can be seen as a money and resource black hole.
When payroll runs smoothly, it increases employee morale, which results in higher productivity levels and retention. When payroll runs badly, it decreases employee retention, can result in financial penalties, and costs businesses time and money. When looking at it this way, payroll in fact does contribute to the financials of the company. So, it should be nurtured and looked after like any other part of the business.
The importance of the continuity and efficiency of payroll services is why it’s crucial that businesses know that Temporary Payroll is available to them.
What is Temporary Payroll?
Essentially, it’s a solution to whatever has affected your payroll department. Maybe the person doing your payroll is going on maternity or paternity leave and you need a specialist to take over until they return. Maybe you’re switching payroll software or implementing a new HR technology, therefore need a specialist to take the reins until the dust has settled. Whatever the situation may be, if there’s one area of business that you don’t want to hinder, it’s payroll.
What are the benefits of Temporary Payroll?
Takes the pressure off your HR or Payroll team
Sometimes, a payroll employee just taking two weeks off to go on holiday affects payroll. This is an enormous amount of pressure to put on a team. It could be preventing your employees from taking their annual leave, which will undoubtedly affect their overall workplace wellbeing and happiness in their job. It’s important that payroll employees know that they can (and should) take time off work, and Temporary Payroll is an excellent option for providing that peace of mind.
Payroll is meticulous and time consuming; it has to be done perfectly. If your payroll or HR personnel are solely responsible for ensuring that employees are paid correctly and on time, they can’t really focus on other projects. If there’s a project coming up that is going to take time and resources, like transitioning between payroll providers, having outsourced payroll services in place takes the pressure off. Payroll takes a lot of time and brain power, so a Temporary Payroll solution allows payroll and HR teams to put their complete focus on the project.
If a payroll employee who knows a business’ payroll needs from top to bottom has to go off work, it might be left to another employee. Not only does this put pressure on the employee, it also increases the risk of error. Human error is unavoidable, especially when a person isn’t specifically trained in an area. But when errors happen in payroll, it impacts people’s livelihoods. We know that when payroll is let slip it affects employees, so companies can minimise those errors by finding solutions to what’s causing them.
Paid employees are happy employees. A study by SD Worx found that 44% of workers in Europe had been paid late, and 48% of those had also been paid incorrectly. People work to get paid, so it shouldn’t come as a surprise that 49% of workers would start looking for a new job after just two issues with their payslip.
Being paid late is more than an annoyance for many employees. It could become a huge financial strain for people if they end up having to pay their rent and bills late, resulting in late payment charges. Sometimes correcting payroll issues aren’t made for another week (or longer), and with 25 million people in the UK being financially vulnerable, this isn’t good enough. In fact, a survey by Shelter and YouGov found that 40% of UK households are just one payslip away from potential homelessness. It isn’t just a case of keeping the workforce happy and maintaining high retention levels, ensuring that employees are paid on time and correctly keeps them healthy and safe.
Nobody likes unnecessary costs. One of the most common mistakes people make is missing the deadlines that HMRC set, which can incur penalties. This could range from an annoying cost to a huge financial burden. Of course, payroll and HR departments generally prepare for these deadlines, but sometimes things just can’t be helped and life happens. In these circumstances, it’s reassuring to know that with a dedicated Temporary Payroll solution, you’re always prepared and can avoid preventable costs.
Payroll and employment legislation is often changing. It might be a challenge to keep up with, but compliance is not optional. Getting it wrong puts your business at risk of large financial penalties or other repercussions.
Failure to comply with the law doesn’t just happen with complicated payroll legislation and regulations. A few years ago, the Resolution Foundation revealed that one in ten employees in the UK weren’t getting one of the basic payroll requirements, a payslip. It’s something so simple but it meant that those companies were breaking the law and potentially faced charges.
Protect your reputation
If a business is known to often pay late or incorrectly, this will be an immediate representation of their reliability. How reliable a business is, is a direct reflection of its brand. When word gets out, poor payroll management can leave a business’ reputation in tatters. In turn, the company becomes less appealing to potential employees or new clients.
This blog was written by Phase 3, they are an exhibitor on the HRTech247 Consulting & Advisory Partner floor of the Partners Hall. You can visit their virtual space here.