Many expenses are examined at an executive level, but often payroll is one item that is glazed over until a problem arises. We may often forget how much cost is associated with improperly conducted payroll. Did you know that in fiscal 2018, the Wage and Hour Division of the United States Department of Labor recovered a record $304 million in wages owed by employers who were not compliant with labor laws? If the fear of government intervention isn't terrifying enough, let's examine how these issues can lead to internal disruption.
The Workforce Institute at Kronos Inc. discovered that nearly half (49%) of Americans surveyed would begin searching for a new job after just two payroll errors. Coupled with earlier findings by Kronos that revealed 54% of the workforce in the U.S. has been affected by some type of payroll problem, the consequences of these errors could be monumental. As we all attempt to maintain a fully operational workforce, the challenge is to keep employees engaged and fairly compensated. After assessing all the risks associated with the task of payroll, it makes sense to spend time defining a solution that will not only protect those held liable, but protect the integrity of your workforce.
As important as it is to be compliant, research published by Kronos Incorporated and the American Payroll Association revealed that 29% of surveyed respondents used a payroll solution that was 10 or more years old. Not only are many current solutions out of date, but the decision to be compliant is often affected by the factors of finance and time. Remember the phrase work smarter not harder? This can lead to cutting corners and the two most common variables we attempt to save are time and money. We've also been engrained with the fact that time is money. So how do these ideologies affect workers? Kronos Incorporated found that 55% of HR and payroll professionals have witnessed compliance activities by their coworkers that created unnecessary risk. In order to shift the perception of your workforce, it is important to give them the tools and solutions that preserve compliance, time and everyone's hard earned dollars.
Making regulatory changes and implementing solutions are worth the investment when you consider how much liability can be decreased. When using a HCM suite that is fully equipped to keep you compliant, it will save your staff's time and your organization's money. Did you know that Kronos Incorporated found on average that HR and payroll departments spend almost 36 hours a week on compliance related activities? It's worth considering having a solution in place to help you manage compliance and lucky for you, we know someone that can help!Read More