A fresh new month, an opportunity to review goals and targets, all while savoring a comforting cup of coffee on this chilly October morning, ponders the HR manager. A routine glance at the inbox before setting off for the day, but her smile gradually wanes as she encounters that dreaded sentence: “My hours are wrong.”
“Here we go again,” sighs the manager.
No small matter
In April 2023, Global Payroll Association published new research which revealed that 47% of UK employees have been paid late or incorrectly, and that, of these, 11% of employees had to wait over a month to receive the wages owed. But what are the consequences of this?
Implications for employees
The timely and accurate receipt of wages is essential for financial stability among hourly workers. Incorrect payments can disrupt financial planning and may lead to significant stress due to unforeseen financial challenges.
Over time, frequent wage disputes can corrode the trust between employees and their employers. When workers consistently question the accuracy of their pay, it is likely to erode the essential foundation of trust required for a positive working relationship, potentially creating awkward tensions at work.
Moreover, if these disputes arise during working hours, employees caught up in these disputes may find themselves wasting the time and energy that could be better utilised in their roles. This not only hampers job performance and productivity, but is also likely to reduce job satisfaction and, subsequently, staff retention.
Implications for HR
For HR departments, addressing pay disputes can place a significant burden on resources. It involves comprehensive investigations, meticulous documentation, and extensive communication with employees to reach a resolution. This additional workload can divert attention from critical HR functions, creating additional pressures for HR professionals.
To add to these pressures, consistent complaints about pay from employees could also contribute to a general sense of unhappiness in the workplace, stemming from feelings of neglect from employees and increased work pressures from HR teams. Ultimately, maintaining a positive atmosphere becomes increasingly challenging when confronted with ongoing pay disputes.
To top things off, incorrect pay can expose employers to legal problems, such as tax-related issues or failing to meet minimum wage requirements, potentially resulting in substantial fines.
Overcoming a lose-lose situation
Evidently, hourly wage disputes represent a substantial problem affecting both employees and HR teams.
HR departments can mitigate these issues by implementing effective payroll systems, maintaining clear communication, and establishing transparent processes to reduce arguments and maintain overall workplace satisfaction. By addressing this challenge, we can foster a more harmonious workplace environment for everyone in the UK.
Unlocking the potential of elementsuite’s gross payroll engine
elementsuite’s gross payroll engine introduces a groundbreaking solution for managing working hours by providing real-time visibility to employees.
When employees clock in, elementsuite’s software begins tracking their hours, accurately recording total hours worked to the point when they clock out. As a result, employees can manage their hours on a daily basis with clear visibility, rather than at the end of the month. And any issues can be solved on the spot – no more waiting until next month to be paid correctly!
This feature not only ensures precise payroll, but also simplifies the lives of both employees and HR personnel, eliminating the frustrations associated with monthly wage discrepencies and preventing a pile-up of pay disputes at the start of the new month. By promoting transparency and efficiency in the workplace, this system enhances overall productivity, satisfaction, and staff retention.
A win-win for all!
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Useful resources
HRDs’ guide to successful software implementation – Part 1: Identifying Your Requirements
A Day of Triumph in Hospitality HR Management
