HRIS UK Payroll Software
Why Companies Still Use Excel for HR and Payroll – And Why It’s Time to Move On
Elena Segura
Cofounder
HMRC recognised
Givver is officially recognised by HMRC (HM Revenue & Customs) as a payroll software provider. This recognition means our software has met HMRC’s standards, passed their testing process, and is listed on the official GOV.UK site. We’re committed to upholding the quality and compliance that come with this recognition.
Why Companies Still Use Excel for HR and Payroll – And Why It’s Time to Move On
Excel has been the go-to tool for UK businesses for decades. It’s cheap, flexible and already installed on most computers. But while spreadsheets feel convenient, they create hidden risks and inefficiencies when used for HR and payroll.
This long-form guide explains:
Why companies continue to use Excel.
The risks and hidden costs.
Real-world examples of failures.
Free resources and templates to help.
Why integrated HRIS and payroll software is the better long-term choice.
Why businesses still use Excel for HR and payroll
Low cost – No extra software needed.
Customisable – Managers can create their own trackers.
Familiarity – No training required.
These factors explain why 70%+ of small UK businesses start payroll in spreadsheets. But what feels like a saving often becomes a long-term cost.
The hidden challenges of Excel payroll
1. Compliance risks
A wrong formula or missed update can lead to incorrect PAYE submissions or pension contributions. HMRC fines and employee complaints are common outcomes.
2. Onboarding and leavers
Starters and leavers are often missed in spreadsheets. This creates over- or under-payments and complicates audits.
3. Holiday management
Without automation, accruals and carry-over are prone to error. Try our Holiday entitlement calculator to calculate entitlements correctly.
4. Payroll processing
Manual checklists are essential to avoid missed steps. See our Payroll checklist.
5. Employee records
Data is often duplicated or lost across multiple files. Download our Employee data tracker template (Excel) to centralise information.
Pros and Cons of Using Excel for HR and Payroll
Pros of Excel | Cons of Excel |
|---|---|
Low cost – already available on most computers. | High risk of errors – formulas can break, leading to incorrect payroll. |
Flexible – can be customised for unique company processes. | Time-consuming – manual updates and reconciliations take hours. |
Familiar – most finance and HR teams know how to use it. | No integration – HR, payroll and holidays sit in separate files. |
Useful for very small teams (fewer than 5 employees). | Poor compliance – manual data makes HMRC filings and pensions harder. |
Lack of audit trail – no record of who changed what and when. | |
Doesn’t scale – becomes unmanageable as the business grows. |
Case studies of Excel payroll failures
Retail sector: seasonal staff added manually, but formula limits lead to incorrect NI calculations.
Technology start-up: rapid hiring overwhelms spreadsheets; leavers are not updated, creating duplicate payments.
Healthcare provider: overtime logged in a separate sheet, underpayments lead to staff resignations.
Professional services firm: GDPR risk when spreadsheets are shared via email with sensitive employee data.
The cost of staying on Excel
Time wasted in manual reconciliations.
Risk of fines for compliance failures.
Employee dissatisfaction due to errors.
Lack of transparency and audit trail.
Over time, these costs outweigh the licence fee of modern payroll software.
Why move on to HRIS + Payroll software?
An integrated HR and payroll system like Givver:
Automates payroll in real time.
Manages holidays and absences without formulas.
Links onboarding/offboarding directly into payroll.
Provides self-service for employees.
Ensures HMRC compliance.
👉 Givver is HMRC-recognised payroll software.
Conclusion
Excel might work for very small teams, but it doesn’t scale. The hidden costs of errors, wasted time and compliance risk make it unsustainable.
Free templates like the Employee data tracker can help as a short-term fix. But the future of payroll and HR management lies in automation, integration and compliance — not manual spreadsheets.
No more juggling multiple systems or drowning in spreadsheets.
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