The Payslip Statistics Report 2024, published by the Chartered Institute of Payroll Professionals (CIPP), has revealed that more needs to be done by payroll departments to communicate with employees and help them understand their payslips.
57.57 per cent of employers surveyed do not use any tools to help employees understand their payslip, while only 19 per cent of employers surveyed use payslips to communicate additional messaging to their employees.
Given that payroll professionals continue to receive a large number of queries from employees relating to understanding of payslips and tax codes, incorporating information into payslips is an easy and effective way of helping employees understand new changes in regulations.
The report also found significant issues with communication from payroll departments.
When asked about their most utilised methods of communication, 36 per cent of respondents claimed to use none of them.
This has raised concerns about payroll professionals being unable to provide financial advice to employees.
Furthermore, the question of whether payroll professionals should be providing financial wellbeing has divided employers, with 44 per cent believing they should, 22 per cent believing they should not, and 33 per cent feeling unsure on the matter.
Those asserting the negative or expressing uncertainty raised concerns that payroll professionals are not trained to offer support with a person’s financial wellbeing, while others believe that financial wellbeing is the responsibility of companies’ HR departments.
Lack of time and high costs are other significant factors preventing payroll teams from offering financial wellbeing services.
Despite mixed opinion from those surveyed, the report concludes that employers should be doing more to help employees understand their payslips and manage their financial wellbeing.
The report stated: “At a time when personal finances are at the forefront of the mind for most UK residents, it’s more important than ever that everyone should understand their payslip and can check that they are being paid correctly.
“Unfortunately, this is rarely the case. Payroll professionals often try to communicate upcoming changes in legislation or if something new is being rolled out, but the fact remains that a large number of working people in the UK still don’t understand the basics of the payslip and many are too embarrassed to ask for help.”
At Grunberg & Co, we understand that payroll has become increasingly complicated for employers.
If you struggle to make sense of payslips yourself, helping your employees understand them is an even bigger challenge.
That’s where our payroll specialists come in.
We offer completely outsourced payroll services that are tailored to your business’s specific needs.
We can support you to provide important information to your employees, help them understand their payslips, and boost their financial confidence and wellbeing.
With the knowledge that your payroll is being taken care of by our expert team, you’ll be able to focus on further supporting your hardworking staff and running your day-to-day business operations.
Payroll is made simpler with Grunberg. To find out more about our comprehensive payroll services, please get in touch.
