In any organisation, the reliability of payroll systems directly impacts employee satisfaction and retention. This is the worst-kept secret in the business, and yet still many companies continue to struggle with payroll fundamentals. Even in 2024, a significant portion of the workforce faces delayed payments and incorrect salary calculations, leading to concrete effects on employee turnover. Our research indicates that 21% of employees in Ireland were paid late several times in the past year, increasing their likelihood to seek new employment. There is a critical link between payroll efficiency and talent retention which can’t be ignored in the pursuit of maintaining a satisfied workforce.
Payroll errors extend beyond inconvenience; they induce stress and erode trust, particularly in challenging economic times. With only 34% of employees in Ireland feeling compensated for inflation, discontent regarding compensation deepens, further diminishing workplace engagement and productivity, and exacerbating turnover rates.
Reliable income is crucial for psychological well-being, providing a sense of security essential for meeting life’s basic needs. When payroll issues threaten this security, the impact is profound. A delayed or incorrect salary payment taps into primal fears about survival and safety, drastically affecting an employee’s mental health and job satisfaction. This insight underscores the imperative for HR departments to prioritise payroll accuracy, recognising its pivotal role not only in financial matters but also in safeguarding employee well-being.
Related Press Release: Almost half of employees in Ireland suffer from financial stress
"Payroll errors go beyond inconvenience, causing stress and eroding trust, especially in tough economic times. With only 34% of Irish employees feeling compensated for inflation, discontent can easily grow in a workforce, which is why it’s so important to listen and respond quickly to changing circumstances."
- Amanda Sadlier, People Leader
To address these employee-centric payroll needs, fostering a self-service culture in payroll administration can be game changing. Empowering employees to manage leave requests, expenses, and inquiries enhances convenience and satisfaction, contributing to a positive employee experience. Moreover, providing prompt and accurate responses to payroll queries is vital for building trust and satisfaction within a workforce and
reducing employee desire to seek new opportunities elsewhere.
Despite the allure of advanced payroll technologies, the primary need for employees remains straightforward: to be paid correctly and on time. While job seekers still prioritise salary most highly by a significant margin, this is followed by job security and financial stability in second place. Furthermore, transparent communication and clarity in payroll calculations is crucial, but so is clearly communicating the outcome – the payslip – in a visually appealing and clear manner. By investing in a clear payslip and involving employees in the verification process, you can foster transparency and reduce misunderstandings.
Before adopting complex payroll systems, companies must perfect these crucial aspects of payroll processes. Ensuring payroll accuracy and timeliness is the first step toward building trust and retaining talent. Successful payroll management is not just about paying employees; it’s about valuing them correctly and consistently.
In Ireland, only 64% of employers believe there is enough internal experience on the team to sufficiently manage payroll independently.
We asked employers and employees in Ireland to tell us about payroll at their company. We surveyed 17 other European countries to spot the trends and to see how Irish businesses compare. Now, four SD Worx formerly Intelligo experts share insights from the new research to answer the biggest payroll questions every Irish organisation faces right now, as they try to achieve payroll success in 2024.