22 September 2025
Research by Sage has found that businesses spend an average of 120 working hours per year on administrative tasks, with payroll being a significant contributor to this overhead.
Could a different approach to processing payroll help? The simple answer is, yes!
A payroll solution that reduces errors and cuts processing time by combining the efficiency and simplicity of automating payments with the speed of Faster Payments can deliver results where it matters most.
The Human Impact of Payroll
Payroll is ultimately about people. With salary being a critical touchpoint in employee satisfaction, companies can't afford to pay staff late, get salaries wrong, or expect their employees to give them a second chance. An article by the Global Payroll Association (GPA), Beyond Number: empowering people through payroll transformation, estimated that in 2023, a third of the UK population were living payday to payday.
In such circumstances, the consequences of late or incorrect payment do have a real impact on individuals. The GPA study also revealed that more than a quarter (28%) of UK workers have struggled to manage their finances - such as paying rent, mortgage, or bills - due to receiving incorrect pay, with 59% of employees experiencing a negative impact to their mental health due to payroll errors, according to Zellis research.
With rising costs, particularly during times of inflation, it's easy to see why accurate and timely payroll is vital. SDWorx also identifies the impact of inefficient payroll processes on businesses, with poor reputation, low employee retention and an inability to attract new talent found to be the main risks.
The Cost On Payroll Professionals
Bearing the weight of this reality means additional pressure on payroll professionals. UHY Hacker Young estimates the cost of payroll errors for UK firms to be in the region of £700 million each year. Frequent regulatory changes are difficult to keep up with, and 60% of professionals find this challenging, according to the CIPP.
The detail-oriented and diligent payroll professional now faces the consequences of errors — not only from employees expecting to be paid accurately and on time, but also from the business, which must prevent employee turnover, fines, and a poor reputation in the industry.
This imposing list only serves to underline the importance of offering payroll teams the ability to meet this challenge with all the benefits technology now offers.
Seasonal Payroll Pressure
Where payroll teams feel these pressures most acutely is around atypical events and shortened working weeks that require different working patterns. This might also include annual leave taken over summer, bank holidays, national holidays, and the festive period.
These situations lead to unusual working patterns for some employees and reduced working hours for financial institutions. During these shorter and more intense working weeks, many employers speak of the scramble to complete payroll processes within the inflexible three-day Bacs payment cycle imposed by current payroll processes.
This kind of timeline leaves no room for error.
Where Tech Can Help
A recent study by FloQast found that 99% of surveyed accountants admitted to suffering from some level of workplace burnout. With the importance of getting payroll right, the last thing companies need is employees handling it while dealing with chronic workplace stress.
Furthermore, respondents of a Deloitte survey indicated they had more than 40% of their effort tied to manual data loads, emerging as the most time-consuming aspect of processing each payroll.
According to SDWorx, 41% of UK companies cite speed and efficiency as their biggest payroll pain points. Integration — the process of automatically moving data from one system to another — is happening everywhere. It holds the key to simplifying payroll, reducing errors, and saving valuable time.
According to EY, within the finance function, accounting is the leading candidate for automation opportunities. It suggests that developing an automation ecosystem through strategic partnerships is essential for future success. Automating payments is an integral part of this ecosystem, reducing manual workload and enhancing accuracy.
What’s more, by integrating your chosen payroll software and streamlining payments, business owners and accountancy teams can focus on their myriad of other priorities and strategic activities.
A Faster Payments Future
In a rapidly evolving tech landscape, innovation is constantly expected. One such demand is the increased speed in payments.
Accountancy teams and businesses can take advantage of the payment infrastructure provided by new entrants, transforming how they pay their employees through direct access to payment rails like Faster Payments.
Payment rails are the systems that facilitate the transfer of money between a payer and recipient. The key advantages of Faster Payments over traditional three-day Bacs payments include speed, flexibility, and efficiency.
Transactions are processed almost instantly — in as little as 90 seconds — ensuring employees receive their salaries without delay, even on short notice or during holidays. This flexibility is crucial when handling unexpected payroll issues or corrections. Additionally, it reduces the need for manual interventions and follow-ups associated with delayed payments.
Simplifying Payments and Saving Time
Payroll is a vital part of the business landscape and is integral to the job satisfaction, financial wellbeing, and company loyalty of employees. It is also central to the wellbeing of the business, managing reputation, and preventing costs associated with errors, recruitment, and compliance.
The juggling act demands support for the payroll team — to add efficiency and empower those at the helm to deliver payroll in an accurate and timely manner.
The answer is a solution that automates manual processes, integrates with accounting software, and leverages Faster Payments for flexibility and speed, ensuring your payments are processed 24/7 without interruptions.
But it’s not just about efficiency; it’s about peace of mind. Choosing a payments provider that simplifies the process can alleviate the pressure experienced during payroll deadlines, making the month-end a much smoother process.