[UK] Poor payroll processes affect mental health of retail and hospitality workers

Retail and hospitality workers across the UK are fighting mental health issues and fear they will not be paid what they are owed. One in 10 are concerned that their wages simply will not be in their bank account on payday, London Loves Business reports.

Research conducted by IRIS Software Group (IRIS) in partnership with YouGov revealed the workers’ concerns and additionally showed that the same number - around 300,000 workers in hospitality alone - do not have faith that their employer will pay them the right amount each month.

Monty - a restaurant worker and uni student from Gloucestershire - said, “In the run-up to Christmas, I struggled to get clarification on whether or not I was going to get paid. COVID meant my shifts constantly changed, but systems didn’t allow management to easily manage my hours  I ended up disappearing from the payroll completely. It took several meetings with my manager to agree hours worked and money earned. It was extremely stressful balancing finances with university and I finally got paid on Christmas Eve.”

For workers in health services, the figure rises to a staggering 16 per cent or around 480,000 people. Additionally, around 69,000 teachers do not trust that they will be paid the right salary on time each month.

The personal finances of many people in the UK have been stretched thin over the last 18 months. An independent report from the University of Edinburgh Business School found some NHS workers to be heavily reliant on high-cost credit, with APR as high as 1.333 per cent. Intense pressure and stress over not being paid the right amount, or on time, is negatively impacting workers’ mental health to a significant extent and their ability to manage personal finances.

The majority of UK workers (77 per cent) now expect to receive a digital payslip from their employer. Yet one in five UK workers said anxiety over poor communication around pay makes them feel like looking for a new job. The total rises to 22 per cent in the medical and health services and hospitality and leisure sectors.

“Aside from being the hardest hit by the pandemic, what these sectors all have in common is complex payroll requirements,” David Turner - Chief Marketing Officer at IRIS - said. “Retail and hospitality have a large proportion of gig-economy workers, and healthcare and education firms have to contend with complex and constantly evolving legislation. However, this is not a good enough excuse for poor payroll processes that keep thousands of UK workers awake at night.

“All sectors can and must do better. Especially if they’re to quell the rising storm of mass resignations. From improving employee communication to using software to reduce payroll errors and inefficiencies, businesses must act now to combat these stark figures as we kick off the new year.”

Source: London Loves Business

(Link and quotes via original reporting)

Retail and hospitality workers across the UK are fighting mental health issues and fear they will not be paid what they are owed. One in 10 are concerned that their wages simply will not be in their bank account on payday, London Loves Business reports.

Research conducted by IRIS Software Group (IRIS) in partnership with YouGov revealed the workers’ concerns and additionally showed that the same number - around 300,000 workers in hospitality alone - do not have faith that their employer will pay them the right amount each month.

Monty - a restaurant worker and uni student from Gloucestershire - said, “In the run-up to Christmas, I struggled to get clarification on whether or not I was going to get paid. COVID meant my shifts constantly changed, but systems didn’t allow management to easily manage my hours  I ended up disappearing from the payroll completely. It took several meetings with my manager to agree hours worked and money earned. It was extremely stressful balancing finances with university and I finally got paid on Christmas Eve.”

For workers in health services, the figure rises to a staggering 16 per cent or around 480,000 people. Additionally, around 69,000 teachers do not trust that they will be paid the right salary on time each month.

The personal finances of many people in the UK have been stretched thin over the last 18 months. An independent report from the University of Edinburgh Business School found some NHS workers to be heavily reliant on high-cost credit, with APR as high as 1.333 per cent. Intense pressure and stress over not being paid the right amount, or on time, is negatively impacting workers’ mental health to a significant extent and their ability to manage personal finances.

The majority of UK workers (77 per cent) now expect to receive a digital payslip from their employer. Yet one in five UK workers said anxiety over poor communication around pay makes them feel like looking for a new job. The total rises to 22 per cent in the medical and health services and hospitality and leisure sectors.

“Aside from being the hardest hit by the pandemic, what these sectors all have in common is complex payroll requirements,” David Turner - Chief Marketing Officer at IRIS - said. “Retail and hospitality have a large proportion of gig-economy workers, and healthcare and education firms have to contend with complex and constantly evolving legislation. However, this is not a good enough excuse for poor payroll processes that keep thousands of UK workers awake at night.

“All sectors can and must do better. Especially if they’re to quell the rising storm of mass resignations. From improving employee communication to using software to reduce payroll errors and inefficiencies, businesses must act now to combat these stark figures as we kick off the new year.”

Source: London Loves Business

(Link and quotes via original reporting)