Of those who had received an incorrect paycheque, 46% had experienced this happenning on more than one occasion.
HR is crucial in overseeing the correct delivery of payroll, commented Ronni Zehavi, co-founder and CEO at HR software firm HiBob.
Speaking to HR magazine, he said: “Where every company has a unique payroll setup involving various departments such as finance, payroll and HR, to ensure employees receive the correct pay at the end of the month, a strong partnership between them is crucial.
“However, it’s HR that plays a pivotal role by providing oversight, as mistakes can significantly affect employee productivity, commitment and retention.”
Read more: Half of employees have missed a bill payment due to inaccurate payroll
The survey revealed that in almost half of cases (46%) the mistake arose from human error when calculating the employee’s wages.
Mistakes with paycheques took more than a week to be corrected in 56% of cases, and only 13% of errors were fixed on the same day.
More than a quarter (28%) of employees reported that the error caused them to have difficulty paying bills or rent.
When errors occur with payroll HR should communicate how they are working to resolve the issue with employees as soon as possible, recommended Zehavi.
He said: “Payroll can be one of the biggest headaches for all involved, but HR professionals bear the brunt of complaints when pay is incorrect. Errors can be mitigated with the right integrated technology. However, should mistakes occur, HR must be transparent and responsive.
"Swiftly responding to reports of inaccuracies, rectifying them and proactively communicating the resolution process ensures that employees feel valued and heard, which is vital for maintaining a happy, motivated workforce.”
In more than three quarters (78%) of cases, employees were paid too little, while in 19% they were paid too much. In 3% of cases, employees were not paid at all.
In a further 29% of instances where employees received an incorrect paycheque, the paycheque did not include the correct bonus or overtime pay. And in 11% of cases, benefit and payroll deductions were incorrectly calculated.
Read more: Are you currently making unlawful payroll deductions?
HR could improve payroll accuracy by investing in HR software and training for payroll professionals, suggested Ian Moore, manging director at consultancy Lodge Court.
Speaking to HR magazine, he said: "To mitigate payroll errors and enhance accuracy, HR should look at moving from manual processes to automated systems, to reduce human error. Conducting regular audits can identify and rectify discrepancies, and providing ongoing training for payroll staff on best practices and regulatory changes is also crucial.
"Integrating HR and payroll systems helps to ensure seamless data flow, and businesses can even implement employee self-service portals, to allow employees to view pay stubs, report discrepancies, and update information."
The Global Payroll Association commissioned a survey of 4,248 UK employees.
