How integrated HR administration drives faultless payroll

How integrated HR administration drives faultless payroll

Without doubt the majority of businesses now widely recognise that their greatest assets are their employees – hoorah! However, many employers are still falling at the most fundamental of hurdles by making costly payroll and payment related administrative errors, causing widespread issues.

The fault often lies in employers – quite understandably – not fully understanding the complex, ever-evolving employment laws and failing to maintain employee records to reflect changes in, for example, statutory payments. The upshot of this? Internally, the creation of a workforce with a loss of trust for their employers, potentially leading to:

  • A drop in productivity
  • Grievances
  • Resignations
  • Constructive dismissal claims
  • The time and expense of replacing good employees (the average employee replacement cost in the UK is around £11,000)

The external risks could include reputational damage and a hefty fine from HMRC!

So where are employers going wrong?

There is no doubt that employing people is a fine balance which involves constant review both in terms of changing legislation and maintaining accurate employee records. With the best will in the world employers are under pressure from every angle and it’s all too easy for them to take their eye of the ball and miss vital information or steps that could create issues.

But how to fix it?

In our opinion, the first step in avoiding payroll errors is to integrate the function with HR administration.  This allows a more joined-up approach. The next step is to consider outsourcing both functions to experts in the field who understand all the intricacies involved in getting it right.  This is what we do, day in day out. The benefits of the integrated services we supply, coupled with our subject-matter expertise, is that we can spot potential issues before they arise. A recent example of this was with a new client who had a new starter. The pension agreed between the starter and client was not clearly clarified, with each having a different understanding of what was being offered. Thanks to the technical knowledge we have and the systems we put in place we were able to identify the error and rectify it at an early stage before it became a breach of contract and breach of statutory entitlement issue. Uncorrected this could have cost our client thousands of pounds fines, litigation, and unquantifiable future losses.


If you are interested in exploring the benefits of integrating your services and putting them in our safe hands, please contact Ruth Johnson ( or call the office on 01858 810200. For more information visit:

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