Find freedom from payroll errors
Every single payroll error costs you precious time and money – and underpayments can cost you far more than overpayments!
Nine times out of ten, if your employees are underpaid then they will be extremely unhappy and will remain so until the situation is resolved. Even once the payment is sorted, a late payment can have a longer term impact on your employee’s credit rating as their direct debits bounce, leaving utility bills and bank loans unpaid and thus incurring them additional costs. You will quickly have disgruntled employees banging on your door (instead of working), quite rightly wanting their money. If it happens repeatedly, your best employees may vote with their feet and leave your company.
However, you don’t just lose the direct costs of rectifying the mistake: While your employee is telling you that they are now unable to keep up with their monthly mortgage repayments or car loan, neither you nor they are working, which is a drain on both productivity and morale all round.
On the other hand, you might make a mistake and overpay your employee. What do you do then? How do you get the money back, except through more discussions with the employee who perhaps thought he got his Christmas bonus early?
Whether it is due to an underpayment or an overpayment, when you make the correction, it is not just a matter of paying or recovering the difference: in order to keep a proper audit trail, you need to reverse the original entry and create a new one for the correct amount. Every incorrect payment therefore costs you 3 times the cost of a correct one in terms of transaction and administration costs, without even counting the time lost discussing the situation and working out and agreeing how to correct it.
Simply put, whether you underpay or overpay, it will waste your time and money, make your employee unhappy and decrease both their and your productivity. As such, a T&A and Absence Management System that passes pay data directly to your payroll can provide huge savings for your company.