The Influence of Payroll Errors on Retention
No one wants to be paid less than they deserve, but just how impactful are payroll errors to employee morale and retention? A recent study done by the Workforce Institute at Kronos on American workers reveals how just one payroll error can change an employees perception of their workplace.
According to the research, “nearly half of American workers (49 percent) will seek new employment after just two payroll mistakes, such as being paid late or incorrectly.” A staggering 24% will look for new employment after the first offense and another 25% said they will do this after the second mistake. This demonstrates just how seriously employees take their paycheck. It doesn’t matter if you are struggling to make ends meet or saving money for retirement, your paycheck is a reward for your hard work.
Another interesting fact divulged by the study is “Baby Boomers are most forgiving of payroll errors.” We know there are differences among the generations when it comes to compensation, see Compensation Among the Generations, but there is also a variation in tolerance for a blunder of their pay. “Nearly half (44 percent) of American employees aged 55 and older say they would stay at their job as long as they are eventually paid correctly. That’s in stark contrast to their colleagues aged 18-29 (13 percent,) 30-39 (17 percent,) and 40-54 (27 percent,) who are much less willing to stay even if they’re eventually paid correctly.”
As states and localities continue to refine their recruitment and retention strategies, these are important facts to consider. It might not be how much you get paid, but rather how accurately you get paid. For more stats, read Payroll Problems May Undermine Employee Experience, Finds Workforce Institute at Kronos Survey.