In honour of National Payroll Week, learn how payroll can be a painless, accurate and speedy process
This week, the nation celebrates one of, if not the most, critical aspect of any business: payroll. It’s is a process that works quietly behind the scenes, yet its reach is infinite. From ensuring a sound business to employee well-being and brand reputation, the importance of payroll cannot be overstated. But if one is not a payroll professional, how much would they know about the different elements crucial for payroll, like time data, cash flow, automation and recruitment? TSheets set out to learn more with a survey of 500 people across Canada.
Ignorance is not bliss
When presented with various payroll scenarios, an overwhelming 77% of our survey respondents admit to not being familiar with what’s involved.
Year after year, the Canadian Payroll Association (CPA) has found, through its annual instalment, that:
- 44% of Canadian workers live paycheque to paycheque.
- 46% of Canadian workers say financial stress is impacting their workplace performance.
- 72% of Canadian workers have saved one-quarter or less of what they need to retire.
Payroll can be unnecessarily complicated
But even those familiar with the payroll processes fall victim to different challenges along the way. Out of the 23% of those we surveyed with views about payroll, 26% confess payroll is delayed because of inaccurate manual data. This corroborates with data TSheets previously gathered on Canadian employee time tracking habits, wherein:
- 31% of employees submit an erroneous timesheet at least once per month.
- 45% of employees admit to regularly submitting incorrect timesheets.
Perceptions of technology don’t meet reality
According to our latest survey, 11% of Canadians familiar with payroll say it’s time-consuming because they do it themselves, which is understandable since small business owners often wear every hat necessary to keep the business going. But it doesn’t have to be this way.
“Payroll shouldn’t feel like a nightmare. On average, we help our clients save two hours every month when it’s time to run payroll. They can use that resource on a different aspect of the business instead. And they always wonder why they didn’t do it sooner.”
— Lynn Marsh, Founder, HealthBOOKS Bookkeeping Services & TSheetsPRO, Ontario
Our data also shows, out of those with views about payroll, 20% are willing to pay for automated solutions. Some employers may feel their employees don’t do well with change, but TSheets has found it’s often the case of reality versus perception, where the former always proves the latter wrong.
External challenges: Cash flow and recruitment
About 1 in 10 of those with views about payroll agree payroll is delayed by clients’ late payments. This echoes how cash flow management continues to top the list of barriers to success among small business owners.
Payroll is also closely connected to employee retention. High turnover is expensive for organizations of any size to manage. When Indeed Canada ran an online survey among SMB owners in April 2018, it found that 26% say finding the right employee is harder than it was five years ago. This aligns with the TSheets data. Out of the 23% of those with views about payroll, 46% say they’re willing to pay for good, reliable employees.
Payroll should be the top priority for any business. An easy and hassle-free process helps both employers and employees focus on growing the business, increasing productivity and, ultimately, boosting the bottom line.
On average, TSheets users can help customers to save 6% on payroll costs and shave three hours off payroll processes.