In the survey of UK and Ireland employees, 71% point to at least one factor that makes their payslips hard to understand, at a time when accurate and accessible payroll information is critical to support employees’ financial wellbeing during the economic downturn.
In addition to employees struggling with complicated language on payslips, the research also highlights issues with accessibility and ease of use. Nearly one in five employees (19%) state that difficulties logging into a portal or platform, or having to remember complicated passwords, can make the whole payroll experience more difficult.
While ensuring payroll platforms are easy to access is a relatively simple fix for employers, and can be sorted through improved platform design, the research highlighted deeper issues linked to confidence and understanding. 27% of employees reported that they don’t have the knowledge or confidence to know if information on their payslip is correct or not, while 13% admit their feelings of anxiety about their finances make it uncomfortable for them to even look at their payslips.
“Financial wellbeing is not something employers can ignore, as we know how intrinsically linked financial health, mental health, and the ability to perform at your best are,” said Ian Hodson, Head of Reward and Deputy Director of HR, University of Lincoln.
“I have long been a campaigner for making payslips more meaningful. Employees need information and guidance to help with their financial confidence. That’s why, instead of a traditional payslip, all our employees now get a much more informative ‘pay advice’, through one easy to use integrated system.”
“Now is the time for employers to step up their approach to financial health and do all they can: not only to support those who need assistance, but also to proactively lay the foundations of education programmes and benefits to underpin the right behaviours.”
Gethin Nadin, Chief Innovation Officer at Zellis, said: “Financial wellbeing is ultimately about three things: having control over the money that comes in and goes out of your bank account, having the financial and emotional resilience to cope with the things that happen in our lives, and how we feel about the role money plays in our lives.”
“Employers need to take a strategic and consistent approach to employees’ financial wellbeing, with a focus on driving the behavioural changes which are so critical for people to feel more confident and in control of their finances during this crisis.”
The full report can be downloaded here.