Using a payroll system means that your organization should feel more confident about correct processes and giving employees a consistent check. The best software will prevent glitches and allow your HR department to avoid having to resort to the more primitive and error-prone paper alternatives.
The Minneapolis Star-Tribune recently reported on a mistake at schools in the St. Paul district that were affected by a payroll problem that led to some possible paycheck discrepancies with major consequences.
Although the source says that the problem was fixed after a few hours, the direct deposit system was temporarily interrupted, posing a potential problem for more than 7,360 transactions. Due to a reported Automatic Clearinghouse problem, the deposits did not go out at the planned time.
Employees and teachers expressed anger at this anomaly, and the St. Paul Federation of Teachers stated their discomfort in a letter.
“This is a serious issue that should have been anticipated and prevented by Payroll,” they said. “Will you be offering live checks to employees who come in to [district headquarters] today? It is not acceptable to leave employees without pay over the weekend. Due to the holiday, that would present serious hardships.”
Another, similar incident at the University of Northern Iowa saw the school resorting to paper checks after a payroll failure prevented a deposit. Once again, the issue was mostly resolved within 24 hours, though in this case there were 2,400 employees said to be affected.
To achieve payroll stability, employers may need to implement an HR process reengineering to make sure that the delivery is regulated and free of possible hiccups. Securing this is an easy way to increase trust with workers and make them feel more comfortable at your organization.