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Numerous studies have shown a variety of reasons workers might go in search of new employers. One recently uncovered reason has come as a surprise to many employers: payroll processing issues. According to a survey released by the Workforce Institute, some employees will begin looking for a new job after experiencing problems with their paychecks.

Workers do not take too kindly to payroll processing errors. There is a reasonable expectation that they will receive every penny they are owed on time, every time. Workers also expect HR and payroll departments to get it right without having to be checked on. For right or wrong, those expectations are what they are.

This suggests you could be risking losing your employees if your current payroll solution is not up to par. For example, if your company still uses a legacy system that is prone to errors and miscalculations, consistent payroll errors may be contributing to the steady stream of employees you seem to be losing. Perhaps switching to a modern payroll solution through a company like Dallas-based BenefitMall could solve your payroll problems and help retain your employees.

It Doesn’t Take Much

The Workforce Institute survey revealed that 49% of America’s workers would begin searching for a new job after experiencing just two payroll errors. Two is not many by any standard. The data shows just how sensitive workers are to issues with their paychecks, and that sensitivity should not be ignored by employers.

Data from the survey was compiled using more than 1,000 responses from employees across the country. Some of the survey’s additional numbers are surprising:

·         54% of workers have been affected by at least one payroll problem

·         24% of workers will begin looking for new jobs after just one payroll problem

·         29% of salaried employees will start looking for new work as opposed to 19% of hourly workers

·         30% of employees who are also parents will look for new work after just one error.

If there is any good news in the data it is the fact that 26% of the survey respondents said they would seek help from a manager or direct supervisor following the first payroll error. A combined 33% would go directly to the HR or payroll department to fix that first mistake.

Finally, 7% of the surveyed employees said they would not report a payroll problem in an attempt to fix it. The survey data offers no explanation as to why this is so, but it could be a combination of confusing deductions and withholding or sincere doubts that reporting the problem will actually solve anything.

The Solution: Eliminate the Errors

BenefitMall says that the best way to reduce the risks of employees leaving due to payroll problems is to simply eliminate the errors. They acknowledge that no payroll solution is guaranteed to be 100% accurate all the time, but a modern solution from a professional payroll processor greatly reduces the number of errors that occur.

BenefitMall solutions utilize the latest technologies including accounting automation and the cloud. Their clients enjoy all the benefits of third-party payroll processing – like greater efficiency and regulatory compliance – along with fewer errors that can lead to upset employees. One of the most important benefits from the employee standpoint is direct access to payroll information.


If your company experiences simultaneous payroll problems and excessive employee turnover, the two could be related. You might want to look into upgrading your payroll processing in order to eliminate as many mistakes as possible. You may find a reduction in employee turnover as a result.