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When payroll is poorly governed, employers can lose millions of dollars to waste and potential fraud each year, according to a report from UKG and KPMG. “Payroll leakage” — problems created by bad processes and system limitations as well as fraud — can prompt up to 4% loss of total labor spend, the report said, which can quickly add up for large employers.

The amount employers paid to the U.S. Equal Employment Opportunity Commission through pre-litigation mediation, conciliation and settlements in 2025. The agency said it was the highest number recorded for pre-litigation recovery in its history.

“Performance criteria should aim to make success clearer, not more complicated.”

Leann Schneider

Director of HR research and advisory services, McLean & Co.

Poorly defined performance criteria can undermine the employee experience, McLean & Co said in recently released research, noting that even as employers try to update their performance metrics, they may rely on overly generic or complex criteria that don’t reflect how workers actually do their jobs.

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