Research suggests that 60% of employees in the retail sector have received incorrect pay
23 December 2019
The payroll and human resource software and service provider, Zellis has published the results of a survey of 650 British retail employees relating to the topic of pay. The findings show that over half of respondents reported mistakes in relation to their pay (61%) and almost a third stated that they had been paid late at least once (29%).
The research suggests that there are wider implications for individuals who are paid incorrectly and where they aren’t paid on time, as 32% of responders missed direct debit payments, 29% had to go into their overdraft facility and 25% have incurred bank and interest charges. This is particularly pertinent as other research has highlighted that those who work in the retail industry are more likely to suffer financially, with 68% of workers reporting that they suffer from money worries.
The findings demonstrate how important it is for payroll departments to ensure that they are fully compliant with legislation and that they process payrolls correctly in the first instance, as a bad payroll experience meant that 35% of people would start to distrust their employer and 32% reported that it made them feel as though their employer didn’t care about their financial wellbeing. The same proportion admitted that it made them feel less engaged and lowered their motivation levels at work. A substantial 15% even confirmed that they had actually left at least one retail role as a result of a negative payroll experience.
Helen Hargreaves, Associate Director of Policy at the Chartered Institute of Payroll Professionals (CIPP), commented:
“In the retail sector, where levels of staff turnover are high, shift patterns are seasonal, and large numbers of employees receive the National Minimum Wage, running a reliable and sophisticated payroll function is no easy task. With staff working extra hours and overtime at this time of year, retailers must guarantee the right information is communicated to the payroll team so that each person receives their fair pay for the work completed. January is a notorious month for poor financial wellbeing, so these companies would do much to boost employee trust and engagement if they ensure December payslips are accurate and on-time.”
John Petter, CEO of Zellis said:
“In the midst of the busy winter period, retail businesses must take stock of whether their current payroll and HR systems are suited to handling the complexities of their workforce. Rigorous and ever-changing employment rules, especially those which relate to pay and benefits, are being more strongly enforced than ever before. Non-compliance can cause a myriad of unnecessary financial, reputational and HR problems for retailers that are already under significant pressure due to squeezed margins, rising costs, and low consumer confidence.
Unfortunately, increased competition, combined with a drive to cut costs, could be contributing to underinvestment in the back office systems which are vital to the wellbeing of employees on the ground. But if retailers want to preserve a strong high-street presence – which itself must be underpinned by a happy and engaged workforce – this is a problem which needs to be urgently addressed in 2020.”
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