Pay – it's what we go to work for
Lisa Gillespie, Moorepay’s human resources services director, outlines why accuracy in paying workers is essential to their household finances
A t a recent event I ran a workshop with small business owners around pain points – particularly those that come with the basic requirement of paying their people. There were fundamental issues around every aspect of pay, and it got me thinking on a very human problem. The key issues these business owners brought up were around processing, accuracy, benchmarking, expenses systems, and their overall (dis)satisfaction with pay systems. Everyone had stories of frustrations with statutory deductions and employees not understanding pay statements, and some still operated ‘advances’ for staff as an alternative to payday loans. In my role I do not have to administer pay, but I can assure you mistakes or issues with pay cause me sleepless nights, and it was the same for many of these contacts. Finding the right balance In my workshop I noticed diametrically opposite systems of values when it came to the tricky balance of accuracy versus the administrative burden of getting payrolls right. Paying the workers is a primary function of any business, and for me accuracy is fundamental. And assisting workers to understand what they have been paid – and why they have been paid it – is also important.
At the end of the session there were a few of us still around and over refreshments we started talking about the concept of paying workers as a function of business.
foundation, dashing months or even years of goodwill in one envelope. Putting pay in context One silver lining in the uncertain Brexit cloud will be that we can unpick some of the complex caselaw originating in the European Union and affecting pay. (If anyone is interested I have a blueprint for a simpler UK statutory position already prepared.) But Brexit is only one issue concerning ordinary people. We are living in times when food banks, debt and payday loan companies are an accepted part of daily life for many. While we should question whether that's how we really want to live in 2017, we already know that Brexit equals uncertain times ahead. Most people living on tight budgets know exactly what tolerance levels they have in their household budget. The least we can do is ensure they are paid the right amount, at the right time. If we do not get the basics right we could be unwittingly sending our workers into the unchartered territory of these less traditional models of household support, adding uncertainty to their home life and undermining the loyalty and expertise they bring. Whether you are a business owner or payroll manager, or something in between, getting the basics of paying your workers correctly cannot be understated. n
...earnings are the foundation upon which
The consensus was that it was a massive headache, and some expressed frustration that employees did not understand deductions, particularly on variable pay. Others felt benefits top-ups meant flexible working arrangements were being dictated by savvy part-time workers, rather than business requirements. As a leveller in these sorts of discussions I always make the point that the majority of workers are turning up primarily for their wages. The amount, regularity, and their dependence on future earnings are the foundation upon which most households operate, and the basis for how workers manage their lives. Get it wrong, and you undermine this most households operate, and the basis for how workers manage their lives
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 46
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