Zarah ChoudharyMore than half of employees have encountered payroll errors within the past two years, according to Remote’s ‘State of Payroll Report 2024’.
The report, based on surveys of more than 3,800 HR decision-makers and employees across the UK, US, Germany, France, and the Netherlands, highlighted the prevalence of payroll issues and their impact on trust, morale, and wellbeing.
Younger workers, particularly Gen Z and Millennials, were found to be disproportionately affected by payroll errors.
Among employees aged 16 to 24, more than 70% reported experiencing such issues within the last two years, with more than 40% indicating that their trust in their employer was reduced as a result.
Stress and anxiety stemming from underpayment errors were more common among younger employees, with women being 10% more likely than men to report feeling stressed or anxious over late payments.
This trend was linked to lower levels of paycheck engagement among younger demographics, with only 47% of Gen Z employees regularly reviewing their payslips compared to 70% of older generations.
The report also revealed that payroll errors are not confined to any single sector, with human error cited as the leading cause, followed by incorrect hours logged and technical issues.
The sector most affected by payroll discrepancies was Human Resources itself, where 68% of entities reported issues over the past two years.
The Sales, Media, and Marketing sector followed closely, with 63% of organisations experiencing payroll problems.
