What is one major consequence of payroll errors for employees?

Dissatisfaction among employees is a significant consequence of payroll errors because accurate and timely compensation is crucial for employee morale and trust. When payroll mistakes occur—such as underpayment, overpayment, or delays in processing paychecks—it can lead to frustration and anxiety among workers. This dissatisfaction can affect their motivation, job performance, and overall commitment to the organization.

When employees feel that their financial wellbeing is compromised due to payroll inaccuracies, it can lead to a breakdown in the employer-employee relationship. Moreover, if payroll mistakes are frequent, employees may begin to question the reliability of the organization’s administrative processes, which can impact their loyalty and engagement levels.

In contrast, increased overtime pay, enhanced company loyalty, and improved performance reviews do not directly stem from payroll errors. These aspects would typically require proper payroll management and a positive workplace environment, making dissatisfaction the direct outcome of payroll mistakes.