(Published December 7, 2009)
I wonder if we always realize the trickle-down effect of some of the actions we take, or don't take.
A friend of mine had a problem with his employer's Payroll department. Somehow or other, his paychecks kept falling through the cracks, and he was going sometimes as many as two or three months without a paycheck. This was an exciting job in a field he loved and one that he didn't want to jeopardize by taking legal action if he could avoid it. He consulted an attorney who agreed that he had a potential claim against his employer, but also agreed with my friend's assessment that if he took any action, he would never work in the field again. Eventually, his contract came to an end, and after many phone calls, he got his final paycheck.
And then he got it again. After neglecting to pay him for months, the company paid him twice.
Being an honest man, my friend returned one of the paychecks. He must have been awfully tempted to keep them, under the circumstances, but he wasn't going to take money he hadn't earned. However, and this is where the really big issue comes in, no one in Payroll remembered to notify the IRS of the reimbursement.
So now the IRS believes that my friend was paid several thousand dollars that he didn't receive, and he is being charged back taxes, interest, and penalties. Here's the worst part: It's up to him to make the corrections with the IRS, and he can't get his former employer to take his calls. From the company's point of view, it's a busy time of year and they don't have time to chat with a former employee. Somehow, the message isn't getting through that he has a serious problem that needs to be addressed and that he is not just paying a telephonic social call.
"But Cathie," I hear you saying, "this is a Payroll issue, not an HR issue." But is it? Isn't this an employee relations issue? Don't we have a responsibility to assist employees with any difficulties they may be having with other departments? Shouldn't HR have been involved in straightening out the initial issue so that he got his pay correctly in the first place?
In my opinion, the HR department of my friend's employer seriously fell down on the job here. There was no excuse for the issue to have gone on for so long. Paying employees when the pay is due is both HR and Payroll 101. When Payroll couldn't get the problem resolved, HR should have gotten involved. As a result of these errors, my friend lost his apartment; his personal relationship was affected because he couldn't provide the stability he and his girlfriend both needed; his ability to find work in his field has been jeopardized. He is now struggling to build his own business in a related field. More than a year after the fact, he has still not financially recovered and is facing still more problems if he is unable to resolve the issue with the IRS.
This is one instance that I happen to know about because it happened to someone I know. I hope that it's an isolated instance and not something that's going on frequently, but I suspect it happens more often than we know. I am writing this with my friend's knowledge and permission, in the hopes that I can raise awareness that our employees are not just names on a piece of paper or in a database, and that the issues we find ourselves putting aside because we don't have time can have serious effects down the line.
Catherine Bannon is an HR consultant in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting practice.