The importance of using pay data to propel your business
Unlocking the full potential of payroll data is more than just a backend function; it can revolutionise your business.
As companies aim to enhance efficiency and employee satisfaction, the significance of payroll data has grown tremendously. This is particularly evident in the Payroll Statistics Report 2024 by the CIPP.
We’ve reviewed the report and are eager to share our key findings and discuss how you can utilise this data to drive growth and support your workforce.
Harnessing the power of payroll data
The CIPP Payroll Statistics Report 2024 underscores the critical role of payroll data in employee financial wellbeing and organisational success. However, it also highlights a significant underutilisation of this resource. Three-quarters of respondents have yet to use payslips for anything beyond basic pay data. Yet, those who do leverage this data effectively see remarkable benefits.
For instance, the inclusion of reward information within payslips led to a 551% increase in employee engagement for one organisation. This showcases the transformative power of payroll data in making employees feel valued and informed. Additionally, 97% of businesses operate a monthly payroll, with the last working day of the month being the most common pay date. Aligning payroll practices with industry standards ensures consistency and reliability.
Supporting employee financial wellbeing
Supporting employees’ financial wellbeing is crucial for fostering a satisfied and productive workforce. The report indicates that 57% of respondents do not use any tools to help employees understand their payslips, leading to numerous payroll queries. By providing tools and resources to help employees understand their pay, businesses can significantly reduce these queries and improve financial stability. The report emphasises that effective use of payroll data allows businesses to identify trends and proactively address financial wellbeing issues, fostering a supportive work environment.
Moreover, the report highlights the role digital payslip solutions can play in enhancing financial wellbeing. The accessibility of digital payslips is crucial for helping employees manage their finances more effectively, providing instant access and resources. Furthermore, 26.49% of respondents have increased the retention of payroll records for six years plus the current tax year, underscoring the importance of maintaining comprehensive payroll data for long-term financial planning.
Improving operational efficiency
Adopting digital payroll solutions can automate many manual tasks, reducing errors and increasing accuracy. The report shows a continuous decline in printed payslips and a rise in digital storage, reflecting a broader industry trend towards digitalisation. This efficiency frees up payroll teams to focus on more strategic activities, enhancing overall operational efficiency. Regular updates and compliance with the latest payroll regulations are essential. Compliance with the Employment Rights Act’s requirement for an itemised pay statement has now reached 91%, and there has been an increase in over 10% in compliance around Full Payment Submission (FPS) for pay day reporting.
Furthermore, the shift towards digital solutions also supports environmental sustainability by reducing paper usage. The report indicates an 8% drop in printed payslips, highlighting the growing adoption of environmentally friendly practices in payroll processing.
Promoting employee engagement and satisfaction
Payroll data is not just about numbers; it’s about enhancing the employee experience. The report highlights that companies incorporating reward information within payslips saw a dramatic increase in engagement. This simple yet effective strategy can make employees feel more connected to their benefits and rewards, thereby boosting morale and satisfaction.
Flexible pay options, such as On-Demand Pay or Earned Wage Access (EWA) platforms, are becoming increasingly popular. These options provide employees with greater control over their finances, reducing financial stress and improving overall job satisfaction. With 85% of respondents acknowledging the importance of payroll in assisting with employee financial wellbeing, it’s clear that payroll professionals play a pivotal role in shaping a supportive workplace culture.
Transforming business success with data
It seems the verdict is resounding; leveraging payroll data can boost employee engagement, improve financial wellbeing, and enhance operational efficiency, all significant factors in business growth.
The report highlights key steps: incorporating reward information within payslips to increase engagement, transitioning to digital payslip solutions for efficiency and sustainability, and maintaining comprehensive payroll records for long-term planning. Additionally, adopting flexible pay options like On-Demand Pay can meet modern workforce needs.
By making payroll data a strategic asset, you can foster a thriving, engaged, and financially secure workforce.
For more detailed insights, explore the full CIPP Payroll Statistics Report 2024.
For more of the latest on everything payroll, visit our Knowledge Centre.
