Blog
Case Studies
Downloads
Events
Press and Media
Webinars
Newsletter
A lot of employees struggle to understand payslip terminology, detail, or codes, according to recent Zellis research. This can lead to people feeling confused, overwhelmed, or disengaged. Having an online payslip alone is no longer enough; it needs to be smarter.
Unclear or low-information payslips can leave employees unsure whether certain figures are right or wrong. They are just as uncertain about what they should be checking for in the first place. This makes it difficult to spot any changes or errors when comparing the latest payslips with past ones.
Such challenges often come about because people lack confidence around maths and numbers more generally. They may also feel uncomfortable in asking their employer for help.
The problem is that this situation tends to lead to negative outcomes, as our report indicated. For example, if employees lack confidence in their numerical ability, it inevitably has an impact on whether they can understand their own pay and manage their finances. But there are other potential impacts on their wellbeing and productivity too.
For instance, 37% of the 2,502 individuals questioned in the report said their lack of numerical confidence made them feel broadly less confident at work. A further 34% indicated it cost them time and made them less productive. A quarter even pointed out that the situation had a negative impact on their mental health.
How to improve payslip literacy
So, what can be done to help improve payslip literacy and reduce employees’ financial stress in the process? One option is to provide people with useful tools to help improve the overall experience. A payslip explained is a better payslip.
Zellis MyPay enables employees to access their online payslips, reward statements, and P60s on any computer or mobile device. They can also download the payslips, both individually and in bulk.
MyPay Pro, meanwhile, presents the information via interactive graphics, making it easier to make comparisons and see pay countdowns. A list of frequently asked questions provides guidance and reduces enquiries to the payroll team.
1. Make the online payslip easier to understand
Employers can mitigate risk by making it easier for employees to understand payslips. Offering employees access to online tools with interactive graphics and pay comparisons enables them to gain a clearer understanding of what makes up their pay.
If people feel confident in checking their payslips, they will immediately flag any errors. This means the payroll team will be better positioned to tackle issues swiftly before the situation can escalate.
2. Make pay data accessible on the move
Providing employees with access to pay information and advice at the point and place they need it is vital these days. In the first place, people expect it.
Secondly, employees across all sectors have started reading their payslips more regularly since the cost-of-living crisis began. They want to manage their finances more effectively by understanding what money is coming in and out of their accounts.
To illustrate the point, 56% of employees say they now always check their payslips in detail compared with only 43% in 2022. This is particularly true of those paid hourly or on a variable rate (61%) but is significant even among those on a fixed salary (52%).
Providing access to pay information across all devices, including mobile phones and tablets, should now be standard practice.
3. Enhance pay communication with self-service
People are often too embarrassed to ask payroll professionals or their line managers about their pay directly. They often feel they should already know the answer to a query or can’t face an uncomfortable conversation. As a result, unless there is a glaring error, they may just let minor issues slide. But this doesn’t mean they’re happy about it.
Therefore, it’s important for employers to create a psychologically safe environment where employees feel able to voice any concerns. Open discreet channels where people can go to have their payslip explained. Chatbots can play a useful role here, as could a detailed set of frequently asked questions.
4. Boost employee engagement
Enabling employees to gain more control over their personal finances boosts their engagement. Financial wellbeing can also be clearly linked to employee performance and productivity, according to the findings of PWC’s 2023 Employee Financial Wellness Survey.
This means that investing in financial wellbeing makes sense. This includes making payslip information easy to access and understand. It’s not just an insurance against people falling ill tomorrow; it also supports better engagement and productivity today. This in turn has a direct impact on organisational success.
