HCM platform Hibob has released a survey exploring how payroll is experienced by the U.S. workforce. The findings reveal that while many employees trust their paychecks, frequent mistakes cause financial stress for a significant portion of the workforce, even as payroll teams spend extensive hours fixing mistakes, answering questions and working with outdated systems.

“At HiBob, we see payroll as a vital part of the employee experience, not just an administrative duty,” said Ronni Zehavi, CEO of HiBob. “In today’s economic climate, transparency and accuracy in payroll are key to building confidence and empowering employees to feel secure and respected at work.”

Key Findings Include:  

Paycheck Accuracy and Error Frequency

·       Payroll errors affect 42% of employees every cycle or at least monthly

·       69% feel confident in their paycheck accuracy; 28% somewhat confident

·       45% say payroll errors are resolved quickly and clearly; over 22% report delays, poor communication, or unresolved issues

Impact of Paycheck Inaccuracies on Employee Trust and Retention

·       21% lost trust in their employer due to payroll errors

·       Over 53% would consider leaving if payroll issues persist; 25% unsure

·       64% report financial stress or disruption from paycheck errors or delays

Adoption and Preferences for Payroll Technology  

·       42% strongly prefer digital payroll tools; 25% somewhat prefer them; only 4% prefer manual methods

·       25% have no strong preference between digital and manual payroll

·       Payroll teams spend 5–20 hours/month processing payroll; 41% lose an additional 4–10 hours fixing mistakes

Financial Stress and Its Effect on Job Performance  

·       37% feel calm or neutral before payday; 32% feel stressed or anxious

·       23% focus on budgeting leading up to payday

·       Financial stress affects job performance for 45% (13% significantly, 32% somewhat)

·       Top frustrations: fixing recurring mistakes (54.5%), manual data entry (47.7%), slow/outdated software (45.7%)

HiBob’s survey of 2,000 U.S. employees, including 541 HR and finance professionals, reveals the significant impact payroll has on employee engagement. Reducing payroll issues is essential not only for operational efficiency but also for employee well-being. HiBob is committed to delivering modern payroll solutions that empower businesses and their people to thrive.