A recent Ernst & Young (EY) study of U.S. businesses using traditional payroll placed the average estimated cost of one error at $291. If this weren’t enough, EY found 20% of the average company’s payrolls over the course of a year contain errors.
An organization with an ineffective payroll process risks thousands of dollars in:
- labor
- voids and reversals
- rushed paper checks
- and other time-consuming corrections
It doesn’t matter if an employee is salaried or hourly; if they get paid, they can get paid incorrectly. And a single mistake triggers an avalanche of potential consequences.
There’s still more to this equation. On average, a full-time payroll employee sinks 29 weeks into correcting errors. That’s over half a year lost to preventable issues. Without the burden of a broken process, the same employee could invest time into:
- formulating ideas to raise retention
- enhancing engagement and development
- researching competitive, unconventional benefits
- and more
Luckily, rampant payroll errors don’t have to be the norm.
Related Webinar: The Real Cost of Payroll Errors and How to Avoid Them
How do businesses prevent payroll errors?
Mistakes are only problems when they’re not fixed early. With a traditional payroll process, corrections are always reactive. Getting ahead of these issues means putting payroll where it always belonged: in your people’s hands.
Beti® is Paycom’s employee-driven payroll experience. It automatically identifies errors, then guides employees to fix them before payday — right in the Paycom app.
If they need HR’s help, our Ask Here tool quickly puts employees into contact with the best person to assist.