Not many businesses can claim that their payroll is free from errors or discrepancies. In reality, the payroll problem is a common issue many employers face. However, most don’t care much about it. As a result, employees get disengaged and lose the motivation to give their best to the employer.
So, what can you do? Make payroll accuracy a priority. Businesses that properly manage payroll reap many exceptional benefits like higher punctuality, improved productivity, and better profitability.
In dollars, payroll inaccuracy costs the company a fortune. As per Gallup, payroll problems are among the leading causes of employee disengagement, and disengaged employees cost about 34% in revenue or $3,400 for every $10,000 they make.
For optimum payroll accuracy, you must avoid these three payroll mistakes at all costs:
Writing business and employee-related data by hand is not a wise ploy. It consumes double time and also adversely impacts data accessibility and accuracy. There is a reason why every finance guru suggests businesses to go paperless as it is the best way to manage finances in modern times.
No matter how advanced software and tactics you use, you can’t manage payroll right if you feed into the system inaccurate employee information. From bank details to other payroll-related data, it is essential to double-check every entry before you finalize to ensure the accuracy of employee information.
Just like manual data entry, it is no less than a sin to manage payroll without leveraging the power of advanced software and technology. Why is it a sin? Because if you do know a better, more accurate, and a faster solution exists, it is your obligation to your business to switch to it as soon as you can.
To understand the importance of payroll accuracy, you need to step into your employees’ shoes. Imagine how discouraging it would feel to tirelessly work the entire month, deliver projects on time only to face delays when getting the pay?
Thus, to keep employees engaged and motivated, it is important to make the payroll as clean as a whistle. Every bit of employee information must be accurate, segregated, and properly organized.
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Yes, some delays are indeed unavoidable. However, employers must ensure they occur rarely. While delays are still acceptable, missing pay isn’t. Mismanaged payroll often results in missing wages, inaccurate deductions, and other tax-related issues.
Want to avoid these costly payroll mistakes? Outsource payroll management. You don’t have to add another name on your payroll — and pay them compensation plus benefits — to make your payroll clear when you can hire virtual experts to do so at hourly rates.
Many small and medium-sized businesses outsource payroll to save time, money, and above all else, employee engagement. The sooner you realize it, the better it is.
Book a free consultation with our Payroll Experts to explore how Monily can help keep your employees engaged, motivated, and productive by effectively managing payroll.
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.