How to Stop Payroll Management from Turning into Your Worst Nightmare
Category: HR & Payroll, Posted on: 30/03/2021 , Posted By: Webtel
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It's no secret that managing payroll is one of the essential tasks of any organization. Not only does it require accuracy but timeliness as well. No company wants the wrong salary being credited into neither an employee’s salary account nor it being delayed. An organization invests a lot of energy, time and other resources to streamline its payroll operations. And these days, getting an online payroll management solution is all the rage.



how to avoid problems in payroll management


You may ask what the worst that can happen is. Why invest considerable time and resources not to mention training your employees using payroll management software?


Well….here’s why. Let the horror begin!

Nightmares in Payroll Management


#1 Payout from Hell

Imagine having to pay a US$2.75 million settlement. Scary right? PNC Bank had to pay this amount due to a lawsuit filed by its former employees who claimed the company didn’t track their working hours accurately. It was claimed by the customer service representatives that were working up to three off-the-clock hours each week in unaccounted overtime hours. This came to take place due to employees being asked not to clock in until they’d fired up their computers and gone through their mails.


#2 Breaking in New System Troubles

When one upgrades to a new payroll system, it’s supposed to smooth operations and make life easier right? Well, that’s not the case always as the City of Philadelphia discovered to their horror.


They implemented a new system known as OnePhilly after using a mishmash of systems for more than 3 decades. As per the city mayor’s chief of staff, around 8.5 percent of payroll checks issued over the next four pay-cycles had an error. In real numbers, this figure rose up to more than 7,000 checks incorrectly issued. This issue had a more amicable end as the city set up a helpline wherein employees could ring in if they had been credited wrong salaries.


#3 Social Media Backlash During COVID-19 Pandemic

A US-based retail chain, Kroger, offered its employees an emergency leave of absence pay if they tested positive for COVID-19 and had to stay at home due to it. However, some employees were overpaid US$ 461.60 due to an error while processing payroll.


Now Kroger asked its employees (those who had been overpaid) to return the excess credited amount in installments (one, three, or five). This however made its way to Facebook and the company faced considerable pressure to not seek recoupment of the overpaid wages. In the end, Kroger threw in the white flag and chose not to seek repayment and deemed the incident as an ‘unfortunate payroll error’.


Now as unfortunate as the above stories are, these errors (or malfeasance in the case of PNC Bank) could have been avoided if due diligence had been done. Let’s delve deeper into how you can stop payroll management from turning into your worst nightmare:


  • Navigating new system troubles: It’s a given that when implementing new changes, there will be teething troubles in the beginning. Adopting new payroll software comes with not simply the purchase, but also its seat-up, implementation not to mention investing a considerable amount of time and effort. However, it’s a necessary step needed to take your business to the next level.


  • Cleaning up data clutter: Having unorganized data is a nightmare as you may waste precious time finding the right document or even worse lose it entirely. Investing in a payroll management solution helps you de-clutter all your data on one hand, but also ensures smooth management of your data, privacy, security, storage, et al.


  • Avoiding the payout nightmare: As per a study, automated timekeeping payroll helps reduce the error rate by nearly two-thirds over those organizations simply automating. By adopting a payroll software solution, you can avoid making incorrect calculations and lessen the workload of your HR and admins so that they can reinvest their energies on other vital operations.


  • Delay in salaries: This is one of the major gripes of any employee. Delay in the transfer of salary can send one’s entire financial budget into a tizzy. Having a payroll software solution ensures that employee salaries are credited on time and you won’t have to face disgruntled employees come salary day.



To sum up, having a top of the line payroll solution such as HR Pearls, can help your company avoid crediting wrong salaries, ensure that wages are paid on time and correctly without errors, as well as help calculate taxes, number of overtime hours worked, along with executing full & final payment of exiting employees.


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