Why proper payroll management is vitally important

An effective and efficient payroll department is, therefore, one of the most powerful weapons for enhancing staff morale and bolstering businesses’ reputations among new recruits and existing employees, yet too often the work of payroll goes uncredited and unrecognised within businesses. By celebrating their work, businesses can ensure more effective payroll practices while also strengthening the relationship between the payroll department and employees.

“Traditionally, employees tend to notice the payroll department when there are problems with their pay,” said Jonathan Dowden, Payroll Expert at Sage UK. “Yet payday needs to be right, every time.”

“Many employees underestimate the work that goes into ensuring everyone is paid correctly and on-time, and have little idea of the pressures and difficulties that payroll has to work with. But with payroll proving to be a lynchpin for talent management and staff retention, businesses need to promote payroll as the champions of the workforce. September represents a prime window for people job hunting after the summer hiatus so now is a better time than ever to bring payroll out from the shadows and to the forefront of business,” continued Dowden.

Payroll is a demanding and time-consuming task, with businesses spending an average of 8.5 staff hours a month making payments. Businesses should be empowered with the right people and technology to make paying people simple. These include automised payslip calculation and printing, customisable reports, integrated compliance functions, and direct links to HMRC.

It’s no surprise, then, that businesses are turning to fully integrated payroll applications, such as Sage 50 Payroll, that offer a one-stop solution to payroll problems. Indeed, more than half of private sector businesses in the UK pay their employees using Sage. With September bringing a surge in job applications, Sage UK is urging businesses to champion the work of their payroll departments as a key method of increasing staff retention.


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