The University Payroll & Benefits (UPB) office continues to experience a high volume of payroll adjustments—many of which are avoidable. From 2023 to 2024, the total number of adjustments rose by nearly 2%. In 2024, over 81% of all payroll adjustments were due to issues such as missing timesheets, late job postings, job changes, and time reporting errors. These adjustments not only strain UPB resources but also pose compliance risks and disrupt timely employee pay. Current data indicates the upward trend will continue.
Collaborative Review and Recommendations
Recognizing the urgency of the payroll adjustment issue, UPB partnered with Senior HR Leadership to convene a focus group composed of representatives from units across all three universities. These representatives brought valuable frontline insights into the causes of payroll adjustments and proposed practical solutions based on their experiences.
Following the focus group discussions, a dedicated HR Workgroup was formed to evaluate the feasibility of each recommendation. This group conducted a thorough analysis, categorizing the recommendations into actionable areas, identifying those already in progress, and flagging items that require further review or are not feasible at this time. Their work resulted in a prioritized roadmap that now guides our system-wide efforts to reduce payroll adjustments.
The recommendations fall into four key areas:
1. Automation & Technology Enhancements
We’re leveraging technology to reduce manual errors and improve efficiency:
- Robotic Process Automation (RPA) is being deployed to send reminders for timesheet submission. Other automations are also being explored.
- Dashboards are in development to help units monitor payroll adjustment trends.
2. Training & Education
Improving awareness and understanding is critical. UPB and the HR Workgroup are assessing how current training regarding onboarding and time reporting responsibilities can be improved.
3. Communication & Accountability
Departments play a vital role in reducing adjustments:
- Departments are encouraged to investigate recurring issues and hold employees and approvers accountable.
- Practices such as calendar reminders, proxy approvers, and offboarding reviews are being promoted to ensure continuity and compliance.
4. Policy & Process Improvements
We’re refining processes to prevent errors before they occur:
- A comprehensive list of earn codes with usage guidelines is being developed.
- HRFE routing queues and reporting tools are under review to streamline workflows.
- Departments are being encouraged to transition from Department Time Entry to Web Time Entry for better accuracy and efficiency.
Looking Ahead: Payroll Adjustment Fee Strategy
Additionally, UPB is assessing the feasibility of implementing a payroll adjustment fee to discourage avoidable errors and promote greater accountability across the system. This initiative is not part of the focus group or HR Workgroup recommendations, but rather a strategic measure UPB is exploring to address the most frequent and preventable adjustment types.
The fee would apply only to transactions deemed avoidable, specifically:
- No Time Reported
- Additional Time Worked
- Late Job Posting
- Job Change
- Current Pay Adjustment (CPA)
By introducing this fee, UPB aims to reduce repeat offenses, encourage timely and accurate payroll practices, and alleviate the growing burden on payroll processing resources.
Why This Matters
The University of Illinois System’s payroll adjustment ratio in 2024 was 0.96 adjustments per employee, a figure that significantly exceeds both industry and peer benchmarks. According to Deloitte’s global payroll benchmarking survey conducted in 2020, the North American average is 0.3 adjustments per employee, while the public sector average is just 0.05.
When compared to our Big Ten colleagues, the contrast is even more striking. Six peer institutions reported adjustment ratios ranging from 0.03 to 0.17, with the majority falling below 0.08. In comparison, our system’s ratio is more than three times higher than the North American average and over twelve times higher than the Big Ten median.
This disparity underscores the urgency of addressing avoidable adjustments, which make up approximately 80% of our total adjustment volume. These include errors related to No Time Reported, Additional Time Worked, Late Job Posting, Job Changes, and Current Pay Adjustments (CPA). Left unchecked, this trend threatens UPB’s ability to meet service level agreements and maintain compliance with state and federal regulations.
What You Can Do
Departments are encouraged to:
- Review internal time reporting and approval practices.
- Participate in training and utilize available resources.
- Engage with UPB and HR contacts to understand and address recurring issues.
Together, we can reduce the volume of payroll adjustments and ensure timely, accurate pay for all employees.
