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ISSUE 7
Payroll issues on the frontline While flexible working arrangements are highly valued by employees, they can introduce challenges for payroll systems. With workers splitting and swapping shifts, schedules being adjusted in real-time, and hours fluctuating based on demand, tracking hours and ensuring accurate pay is far more complicated than for a traditional salaried office worker who logs a straightforward 40-hour week. From a cultural standpoint, it’s essential for businesses to get payroll right. Timely and accurate pay is a foundational element of a positive employee experience. If payroll errors occur repeatedly, it can quickly erode trust, leading to dissatisfaction and disengagement. Over time, this can have a significant impact on business outcomes and drive employees to seek other opportunities, resulting in costly turnover and retention challenges. “In response to the growing demand for flexibility, frontline sectors have adapted by providing workers with options like shift swaps, split shifts, and flexible schedules.”
However, as flexibility continues to reshape work in frontline sectors, payroll systems must adapt to accommodate fluctuating hours, irregular shifts, and the growing demand for real-time accuracy.
Flexibility beyond remote work
When we think of flexible working, it’s often associated with hybrid or remote work arrangements. Yet, this kind of flexibility isn’t an option for many frontline workers. Around 3.5 million people in the UK work shifts and 60% of the workforce is required to be physically present on the job. This is especially true for retail, manufacturing, and other sectors where work simply cannot be done from home. In response to the growing demand for flexibility, frontline sectors have adapted by providing workers with options like shift swaps, split shifts, and flexible schedules. These flexible arrangements not only allow employees to balance personal responsibilities, such as childcare or part-time commitments, but they also boost productivity. In fact, a trial by Timewise and the Institute for Employment Studies found that 83% of frontline workers with adjusted schedules reported increased productivity, as they could better align work with personal priorities. But with greater flexibility comes greater complexity, especially when it comes to payroll.
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