The Hidden Side Effect Of Playing Catch-Up On Payroll
Payroll is the lifeblood of any business that has employees, and if you make a mistake with your employees' pay, you're going to have to rectify it. Playing payroll catch-up can cause havoc, however, when you're trying to do it alongside running a busy business. There are more negative side effects to missing a payroll deadline than first meet the eye.
When a mistake has been made or a deadline has been missed, that places great pressure on your accountancy department to rectify the problem. That means that aside from their normal everyday work, they have to focus on rectifying the mistake as well as solving the underlying issue that caused it - provided it wasn't just human error.
This means that your accounts team are going to have to work harder and for longer hours. Early starts and late finishes become more common. If you pay overtime, it's going to cost you in extra wages for the hours your accountants are working, and if you don't pay it's going to cost you in terms of growing resentment in the team.
Resentment is a serious issue when it comes to the fallout of a missed payment. With the economy in its current state, a large portion of workers are living pay day to pay day and depend on their weekly/monthly pay to stay afloat. A mistake meaning they don't get paid can also mean important bills don't get paid, leading to debt issues.
That resentment will either fester within your business, spreading amongst departments, teams, and colleagues, or the unhappy will leave - leaving you short-staffed and looking to re-hire amid a blow to your reputation.
Prevention Rather Than Cure
It's hard to manage the fallout that comes with playing payroll catch-up. The thing for you to do as a business is to make sure you minimise the risk of a problem happening in the first place. Payroll should be at the forefront of every business' consideration, and proper procedures must be in place to ensure that it's handled as reliably as possible.
If you want to make sure your business runs the least risk possible of encountering payroll issues, you should employ specialist help. eSlip Payroll Services, for example, can help you to integrate a reliable payroll system into your daily business operation, managed to a level that suits you and your staff.
To avoid ever playing payroll catch-up, contact eSlip Payroll Services today.
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