By Gideon Schulman
Payroll often sits quietly in the background—until something goes wrong. Then it becomes everyone’s problem.
Whether you’re running a charity, scaling a business, or managing a temporary workforce, getting payroll right is non-negotiable. Over the years, I’ve seen what happens when it’s mishandled—and the cost isn’t just financial.
Here are five payroll mistakes you can’t afford to make:
1. Underestimating Compliance Risk
From RTI submissions to IR35 to auto-enrolment, the rules around payroll aren’t optional. Getting them wrong can result in fines, legal disputes, and reputational damage—especially in the public or third sector, where scrutiny is high.
The fix? Make compliance a priority, not an afterthought. Use up-to-date systems and work with specialists who stay on top of changes.
2. Treating Payroll Like an Admin Task
Yes, it’s operational—but it’s also deeply connected to morale, trust, and retention. Late payments, incorrect tax codes, or unexplained deductions can erode confidence fast.
The fix? Payroll is a people function. Treat it with the same care you give to onboarding, L&D, or wellbeing.
3. Not Integrating Payroll with HR and Finance
When payroll data lives in a silo, you miss opportunities for strategic insight. I’ve worked with organisations where integrating systems led to smarter workforce planning, budget forecasting, and audit readiness.
The fix? Choose systems—and partners—that talk to each other.
4. Using Non-Compliant Umbrella or Payroll Models
Some providers promise to boost take-home pay using aggressive tax schemes or disguised remuneration models. HMRC will catch up—and it’s often the worker or the agency that gets burnt.
The fix? Due diligence matters. Look for transparency, accreditations (like FCSA), and clear payslips. If it sounds too good to be true, it probably is.
5. Failing to Communicate Clearly
Staff and contractors want to understand what they’re being paid and why. Confusion leads to mistrust—especially if you can’t explain deductions, overtime, or bonuses.
The fix? Communicate. Make sure people have access to real humans, not just portals. Build confidence with clarity.
Final Thought
Payroll is one of the few areas that touches every person in your organisation. Get it right, and it builds trust. Get it wrong, and you’ll be managing more than numbers—you’ll be dealing with disengagement, stress, and reputational fallout.
Like most things in leadership, it’s not just about process. It’s about people.
If any of these feel familiar, I’m always open to share lessons learned—from both sides of the table.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
Payroll often sits quietly in the background—until something goes wrong. Then it becomes everyone’s problem.
Whether you’re running a charity, scaling a business, or managing a temporary workforce, getting payroll right is non-negotiable. Over the years, I’ve seen what happens when it’s mishandled—and the cost isn’t just financial.
Here are five payroll mistakes you can’t afford to make:
1. Underestimating Compliance Risk
From RTI submissions to IR35 to auto-enrolment, the rules around payroll aren’t optional. Getting them wrong can result in fines, legal disputes, and reputational damage—especially in the public or third sector, where scrutiny is high.
The fix? Make compliance a priority, not an afterthought. Use up-to-date systems and work with specialists who stay on top of changes.
2. Treating Payroll Like an Admin Task
Yes, it’s operational—but it’s also deeply connected to morale, trust, and retention. Late payments, incorrect tax codes, or unexplained deductions can erode confidence fast.
The fix? Payroll is a people function. Treat it with the same care you give to onboarding, L&D, or wellbeing.
3. Not Integrating Payroll with HR and Finance
When payroll data lives in a silo, you miss opportunities for strategic insight. I’ve worked with organisations where integrating systems led to smarter workforce planning, budget forecasting, and audit readiness.
The fix? Choose systems—and partners—that talk to each other.
4. Using Non-Compliant Umbrella or Payroll Models
Some providers promise to boost take-home pay using aggressive tax schemes or disguised remuneration models. HMRC will catch up—and it’s often the worker or the agency that gets burnt.
The fix? Due diligence matters. Look for transparency, accreditations (like FCSA), and clear payslips. If it sounds too good to be true, it probably is.
5. Failing to Communicate Clearly
Staff and contractors want to understand what they’re being paid and why. Confusion leads to mistrust—especially if you can’t explain deductions, overtime, or bonuses.
The fix? Communicate. Make sure people have access to real humans, not just portals. Build confidence with clarity.
Final Thought
Payroll is one of the few areas that touches every person in your organisation. Get it right, and it builds trust. Get it wrong, and you’ll be managing more than numbers—you’ll be dealing with disengagement, stress, and reputational fallout.
Like most things in leadership, it’s not just about process. It’s about people.
If any of these feel familiar, I’m always open to share lessons learned—from both sides of the table.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
