The speed and efficiency of salary processing is the biggest challenge in payroll management in Ireland, a study from SD Worx Ireland has found.
More than half (51%) of businesses in Ireland identified speed and efficiency in salary processing as their biggest challenge, far in excess of the European average of 41%.
Additionally, 47% of respondents identified processing accuracy as a top concern.
A total of 5,118 HR leaders across Ireland, including 150 in Ireland, were questioned for the survey, which was carried out by iVOX.
Just three countries (Austria, Belgium and Denmark) showed greater dissatisfaction for the punctuality of wages, but most organisations in Ireland (83%) are satisfied with the overall handling of their payroll processes versus an average of 71% across Europe.
Four in 10 (39%) Irish businesses work with a specialist payroll provider, and most Irish organisations (86%) combine outsourced functions with their own in-house expertise and software.
As a result, many employers take a hands-off approach, with less than half (45%) reporting to be actively involved in payroll tasks and sub-processes.
Just 10% of businesses handle their payroll payments entirely in-house, while 4% completely outsource the payroll process.
More than a third (35%) of businesses in Ireland have built their own software platforms for processing and administration.
Meanwhile, 26% use a payroll solution hosted by their external supplier in the cloud (SaaS model), and the same proportion have external payroll software running on their own servers or in the private cloud.
“Payroll is getting more complex. In particular, legislation is continuously evolving, with new rules being added – sometimes retroactively – both at local and European level,” said Eimear Byrne, country leader for SD Worx Ireland.
“It has become a much bigger job than it was previously, so it is important for everyone involved to stay alert and ensure they have seamless processes in place.
“We continue to live in a cost-of-living crisis. Many people don’t have the luxury of having savings that can cover rent, childcare and other expenses if their salary doesn’t arrive in time.
“A delay of just one day can cause undue and unnecessary stress.
“Continuous progress in innovation and digitalisation make the payroll process more efficient,” she added.
“With salary payments influencing so many facets of a person’s life, every employer has a responsibility to get it right.”
(Pic: Getty Images)
