{"id":6720,"date":"2018-02-07T10:45:38","date_gmt":"2018-02-06T23:45:38","guid":{"rendered":"https:\/\/roubler.com\/au\/?p=6720"},"modified":"2022-03-16T16:05:00","modified_gmt":"2022-03-16T05:05:00","slug":"payroll-errors-employee-retention","status":"publish","type":"post","link":"https:\/\/roubler.com\/au\/resources\/blog\/payroll-errors-employee-retention\/","title":{"rendered":"Trouble with Employee Retention? Payroll Errors Could Be to Blame"},"content":{"rendered":"<p>Employee retention, as we have\u00a0<a href=\"https:\/\/roubler.com\/au\/facebook-employee-retention\/\">discussed\u00a0before,<\/a> is a contentious issue. You spend time, effort, and money <a href=\"https:\/\/www.roubler.com\/au\/features\/recruitment-job-posting-software\/\">recruiting<\/a> and <a href=\"https:\/\/www.roubler.com\/au\/features\/employee-onboarding-induction-software\/\">onboarding<\/a> the best talent for your business &#8211; you don&#8217;t want to be on the hunt for replacements after only a few months. Better employee benefits, improved work spaces, and more home-life flexibility will certainly help keep employees around. However, sometimes the basics are just as key. <a href=\"https:\/\/roubler.com\/au\/features\/payroll-software\/\">Payroll<\/a>, for\u00a0example, is often overlooked as a method to improve employee turnover. Recent research suggests payroll\u00a0processes\u00a0may\u00a0actually\u00a0be a key driver behind whether\u00a0employees quit, or work on.<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>According to research\u00a0by The\u00a0Workforce\u00a0Institute, it\u00a0may take just one payroll error for staff to consider seeking new employment.\u00a0We examine the figures, and look at methods to improve <a href=\"https:\/\/roubler.com\/au\/ebooks-guides\/employee-turnover\/\">employee retention<\/a>.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<h3><b>Payroll<\/b><b>\u00a0<\/b><b>e<\/b><b>rrors\u00a0<\/b><b>a<\/b><b>ll t<\/b><b>oo c<\/b><b>ommon<\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<p>The research found that errors in employee pay are very common:<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"font-weight: 400;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\">54% of those\u00a0surveyed\u00a0had\u00a0experienced\u00a0errors in their pay<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\">26% of respondents had been underpaid in the past, 15% had been provided their pay late, and 6% have been paid too much<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\">On average, employees would need to be paid at least an extra $463\u00a0before alerting employers to the excess cash. If several errors are made in one pay run, this would equate to a massive wage overspend\u00a0<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>Even small errors can put employees in\u00a0<\/b><b>financial<\/b><b>\u00a0difficultly\u00a0<\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<p>The Workforce Institute found that despite\u00a0correcting\u00a0payroll errors in the next\u00a0pay\u00a0run, employees can still be placed in financial difficulty:<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"font-weight: 400;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\">37% of respondents had paid a bill late (such as a car loan,\u00a0mortgage, credit card, or rent) as a result of incorrect pay<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\">Employees on a salary are more likely than hourly-paid employees to pay a bill late due to a payroll error<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>Payroll errors lead to high employee turnover<\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<p>The\u00a0research\u00a0by The Workforce Institute found that errors in payroll can very quickly cause staff to question their employment. The findings include:<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"font-weight: 400;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\">49% of respondents would try to find new employment after\u00a0experiencing\u00a0two payroll errors, including being paid the wrong wage, or being paid late<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\">24% of respondents would try to find new employment after just one error in their payroll<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\">Employees on a salary are more likely to seek new employment after an error (versus those paid per hour)<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\">30% of employed parents will start the job hunt at the first error made<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>It was also discovered that managers play a key role in dealing with payroll issues:<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"font-weight: 400;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\">26% of\u00a0respondents\u00a0noted that they would first\u00a0discuss\u00a0their incorrect pay with a manager, supervisor or boss for correction<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\">19% of respondents said they\u00a0would\u00a0report to a HR manager to rectify the issue<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\">7% of those survey said they wouldn&#8217;t report the payroll error, whilst 4% said they wouldn\u2019t even know who would be able to assist them<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>Furthermore, the study uncovered that whilst Baby Boomers\u00a0can forgive errors,\u00a0younger generations are less tolerant:<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul style=\"font-weight: 400;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"13\" data-aria-level=\"1\">44% of respondents over 55 years of age said they would not consider new employment as long as the pay was\u00a0rectified. This figure\u00a0dropped\u00a0to 27% for those aged 40-54, and drops again to 17% for those aged 30-39.<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"14\" data-aria-level=\"1\">Only 13% of those surveyed aged 18-29 said\u00a0they\u00a0would\u00a0want\u00a0to stay in their current employment if the payroll error was corrected. As Baby Boomers retire and more Millennials enter the workplace, this means that there is more chance that staff will quit after a payroll error.<span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>The conclusion? Payroll plays a large role in employee satisfaction \u2013 and retention<\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/h3>\n<p>Increasingly, businesses are investing in varying kinds of employee benefits \u2013 nicer workspaces, more internal recognition, and even financial incentives. Whilst these benefits will\u00a0undoubtedly\u00a0appeal to employees, the essentials need to be covered first. This data proves that ensuring your payroll processes are up to scratch should be high priority. Not wanting to stick around after a payroll error\u00a0is about more than just money \u2013 it&#8217;s an issue of trust. Employees trust that for their hard work each week, their employer will remunerate them. Being underpaid or paid a week late breaks this trust, and leaves employees questioning the relationship they have with their employer.\u00a0If it takes only one payroll error to make one of your best talents\u00a0consider jumping ship, then payroll errors need to be eliminated completely.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>One of the easiest methods to tackle this issue is to implement intelligent payroll software. With the right software, each pay run\u00a0will\u00a0operate\u00a0smoothly with\u00a0payroll\u00a0errors a thing of the past. The best payroll software should offer your business integrated compliance with <a href=\"https:\/\/www.roubler.com\/au\/features\/payroll-software\/single-touch-payroll\/\">Single Touch Payroll<\/a> requirements, as well as <a href=\"https:\/\/www.roubler.com\/au\/features\/prebuilt-modern-award-templates\/\">integrated\u00a0modern award interpretations<\/a> and\u00a0leave calculations. If you would like to know more about comparing payroll solutions, you can read our guide <a href=\"https:\/\/roubler.com\/au\/payroll-systems-comparison\/\">here<\/a>.<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">Roubler provides accurate, on-time and fully compliant payroll solutions for every business. Improve your employee retention by implementing the very best in HR technology and payroll software. If you&#8217;re looking to eliminate payroll errors and retain your talent, <a href=\"https:\/\/roubler.com\/contact-us\/\">get in contact today<\/a>.<\/span><\/p>\n<h6><\/h6>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employee retention, as we have\u00a0discussed\u00a0before, is a contentious issue. You spend time, effort, and money recruiting and onboarding &#8230;<\/p>\n","protected":false},"author":13,"featured_media":6723,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[886,882],"tags":[11,31,527,759,758,646,39,19],"class_list":["post-6720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-engagement","category-payroll-remuneration","tag-employee-retention","tag-employee-satisfaction","tag-payroll","tag-payroll-accuracy","tag-payroll-errors","tag-payroll-software","tag-roubler","tag-workforce-management-software"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How payroll errors can hurt employee retention Workforce Management Roubler<\/title>\n<meta name=\"description\" content=\"According to research, as few as one or two payroll errors can cause employees to seek new employment. 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