By Adrian Stafford-Jones, Managing Director, Albany Software
According to new research from the Institute of Payroll Professionals, 49% of employees would struggle to meet their current financial commitments if their pay was delayed. Unexpected and unplanned circumstance such as staff absences, power cuts or server downtime can have costly impacts on a business and their employees.
Today most people choose the convenience of scheduling Direct Debits for most of their bills, ranging from rent to gym memberships, with these payments typically set to leave their account the day after they receive their pay packet. However, failure to make these payments due to a delayed salary transfer means employees could incur penalty charges for missed or late payments — a cost they could well do without.
It is the responsibility of businesses to ensure that crucial payments such as payroll are able to go ahead. By investing in Direct Bacs software organisations can set-up secure and validated payments process which also provides a contingency service in the event of a software failure. As a result, organisations receive the reassurance that payments can always be processed irrespective of technical malfunction, enhancing cash flow and ensuring staff wages are paid on-time. An alternative option with an electronic payment solution is the opportunity to host the software at an independent location that can be accessed in any event.
In addition, the arrival of Faster Payments means organisations can submit single or batch payments in near real-time, enabling the FD to make last-minute payments should there be any discrepancies in staff pay.
With employees at the heart of most businesses, organisations must recognise the importance for putting contingency plans in place when it comes to paying staff salaries.