PAYROLL STATISTICS
Change of pay frequency The Payslip Statistics Survey Report has consistently looked at the number of payroll teams who have implemented a change to pay frequency. In the 2020 results, only 3% of respondents confirmed they had made a change. The 2021 results show an increase of more than six times that amount. In 2021, 23% confirmed they had implemented a change in pay frequency. Furthermore, the number of requests from employees to change their pay frequency has increased by more than twice the amount seen in last year’s results. Only 7% of employees requested a change in 2020, but in 2021, 20% requested an alternative pay frequency.
Implemented a change to pay frequency
Request to change pay frequency
In anticipation of these results, the CIPP asked respondents why the change was made. The unprecedented challenges faced across payroll, and the UK economy as a whole have clearly created an agenda for change for many teams. 40% of teams were looking to improve payroll team efficiencies through a change in pay frequency, with 34% taking cashflow into consideration as part of the decision. Several respondents cited other reasons for frequency changes, including business policy decisions dictating the changes, such as temporary staff moving to monthly payroll when made permanent. Others confirmed pay frequency was changed to make furlough calculations simpler. Evidently, a wide-range of factors have created the increase in pay frequency changes. The CIPP also asked respondents to confirm why employees had requested pay frequency changes. The responses included asking for help with their cashflow, and a need for more frequent payments. Others confirmed that financial issues were a direct result of the request. This evidence demonstrates the direct impact that the payroll cycle has on financial well-being, and the important role payroll can play in supporting employees.
Reason for change to pay frequency
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Improve cashflow
Support employee well-being
Improve payroll team efficiencies
Improve payroll accuracy
Accommodate a new payroll system
TUPE transfer / company acquisition
Other
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