In Search of the Perfect Paycheck
The same scenario plays out every week. Employees do their job and employers pay them for that job. Sounds simple, right? Well, sometimes processes break-down and that paycheck is impacted. Have you ever had a paycheck that was inaccurate, late, or worse didn’t come at all? Suddenly, the employee and employer have an issue at hand that has more than just monetary implications.
According to a new survey from The Workforce Institute at Kronos Incorporated an estimated 82 million1 Americans – more than half of the U.S. workforce – have experienced a problem with their paycheck during their career. The results of the survey go on to say that more than a quarter (26 percent) of hourly workers have been paid too little, while 15 percent say they’ve been paid late. For the salaried worker, 15 percent say they’ve been shortchanged in their check and 16 percent report being paid late.
On the flip side of things, there’s also the issue of paying employees too much. Calculations errors aren’t uncommon when time & attendance is tracked on paper. The survey found, on average, American workers say they must likely be overpaid a staggering $463 before alerting their employer to the mistake.
Public sector employers have an additional risk to adverse side effects from an incorrect paycheck. Regardless of underpayment or overpayment, the threat of the media putting a spotlight on perceived wasteful spending is real. It signifies a weakness that the organization isn’t in complete control over their payroll processes.
The truth is, Payroll employees are often over-burdened by illegible hand-writing, late or incomplete time sheets, and the sheer volume of paper that comes in. With this environment comes the potential for errors. Looking for areas of efficiency can lead to better accuracy and even cost savings.