16.62% of UK Employees Have Lost Sleep Over Payroll Issues

Data shows that payroll issues such as delays or incorrect payments can have a profound impact on the mental health of UK workers, but what can employers do about these health risks?

16.62% of employees in the United Kingdom have admitted to losing sleep as a result of payroll inefficiencies. This is the equivalent of one in six workers and underlines the extent to which staff can be concerned with pay.

The findings come from a survey launched by Access Paycircle as part of PeopleHR’s UK Payslip Anxiety Report.

The report suggests that problems linked to payroll may be a more pressing concern than most employers believe.

While payroll systems that are prone to inefficiencies may seem like an afterthought for business owners and decision makers, they can lead to employee unhappiness, disengagement, and even physical health challenges.

Along with losing sleep, nearly half (49%) of employees also reported feeling unhappiness following a payslip error, while 27% claimed that issues related to pay caused them to become disengaged or unmotivated in their roles.

Given that a recent survey has shown that 17% of UK employees have skipped a meal to make ends meet, while 10% claim to do so most days, it’s clear that matters related to payroll should be a key concern for employers.

But what can be done to help support the wellness of workers who are concerned about payroll? Let’s take a deeper look at some essential measures to follow:

Upgrading Payroll Infrastructures

Payroll issues can stem from employers using systems that aren’t agile enough to meet modern business needs.

For companies that scale quickly, it can be understandable to have a payroll system that’s better suited to smaller teams, but upgrading to cloud-based platforms should be at the top of your priority list.

With cloud-based systems offering seamless integrations with HR processes, time and attendance recording, and accounting tools, they are fast becoming the ideal single source of truth for employee data to limit the need for manual data entry and human errors.

For businesses with scaling ambitions, integrating cloud payroll infrastructures is a necessity to improve accuracy and efficiency in reporting and management, as well as free up HR teams to apply more focus on the employee experience.

Addressing Time Tracking Errors

For businesses that operate by tracking hours worked in shifts and overtime, it’s imperative that measures are taken to record the varying data produced by workers accurately.

Without a comprehensive time management system, there’s an increased risk that employees are paid unfairly, leading to possible health complications and the prospect of allocating more time towards corrective errors.

Using an integrated time and attendance system that’s based in the cloud can help to provide a holistic view of the different variables that can come into play when measuring the hours worked by different employees. This allows for regular reconciliation between time-system data alongside payroll information within a dedicated HR platform.

Listening to Feedback

Whether an employer is implementing a new payroll system or simply refining their old processes, employers must invite and study the feedback they receive from their employees to understand where the key pain points are.

This process should be undertaken as a regular audit of payroll data. It can also help to improve the quality of communication between employees and employers throughout the organisation in a way that can help prevent a negative impact on worker wellness.

Consider Flexible Pay Structures

Modern payroll systems can help to support an unprecedented level of flexibility when it comes to employee pay, and Earned Wage Access (EWA) enables workers to access part of their wages before payday.

This can offer a significant amount of relief to staff who regularly experience financial stress due to cost-of-living concerns and recurring debts.

Adding the possibility of EWA as a way for employees to access some of their salary earlier than usual could be an excellent way to help them combat cycles of debt and improve workplace happiness and engagement.

Caring for the Financial Health of Staff

It’s common for employees to worry about their financial health, and employers can take steps to care for their workers by offering a specialist wellbeing portal that allows them to engage with around-the-clock support to ease their concerns.

Whether it’s simply adding links to platforms like Planned Future’s financial information app or any other government-backed helpline, providing the right information to enable employees to act on finding advice can make a huge difference to their happiness.

Prioritising Wellness

For many businesses in the UK, payroll can come as more of an operational afterthought. However, shoddy systems can lead to errors that become a major worry for employees.

With one in six workers losing sleep over payroll inefficiencies, taking measures to ensure consistent and accurate pay should be a top priority for businesses.

Fortunately, cloud-based solutions and flexible pay systems are helping to solve payroll issues. Combined with regular audits and support for struggling staff, employers can take decisive action in building a happy and productive workforce.