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A question that drives my approach to recruiting within the payroll industry - what is stressing CFOs & HR Directors about the biggest cost to their business?
The consensus is that in 2023 the number one answer is still payroll compliance. Last year I met with a HR Director, who is an expert in the implementation of HR Shared Services & Payroll Governance. The powerful statement he made, "If payroll compliance isn't part of your risk management strategy at a C-suite level, you will have underpayments”, has resonated with me ever since.
Undervaluing payroll as a transactional exercise
There’s a clear dichotomy between organisations that undervalue payroll as a transactional exercise. Can you really sell the claim, engrained in the values section of every company website, that they invest in the development of their employees, if this is the case? Is this only for corporate posturing?
Conversely, if a company is proactively investing in Payroll & HR Systems, they can deliver on their employee value proposition. Connecting the employee life cycle through integrated systems gives proximity to queries on an employee’s pay & benefits, but also access to reward & recognition programs.
The role of payroll in employee experience
Payroll is the technical part of an HR Shared Service. Recognition of this elevates payroll as an essential part of the employee experience. It also unlocks insightful reporting that supports the achievement of commercial outcomes, through payroll data analysis using tools such as Tableau Reporting & Power BI.
So, does the retention of a high-functioning & supported payroll team, help reduce organisational retention holistically? Is this the missing link? A positive employee experience, from the outset, can drive candidate attraction & longevity; equally, it is brand damaging when this is missing or inconsistent.
No solution is bulletproof when it comes to retention in such a candidate short, hyper-competitive market. Your payroll & HR peeps might move in silence to ensure process accuracy & efficiency, but if they all suddenly abandoned post, the instant protest from your workforce would be dramatic. Not to mention the risk from external institutions, especially in companies with complex legislation.
Life is more complicated in companies where global systems are introduced without regional consultation. Payroll Transformation Leaders are tasked to align these platforms with the intricacies of Australian & New Zealand payroll. However, not every trendy payroll product survives this test.
The impact of technology on payroll
This innovation supports a healthy organisational culture and the elevation of payroll as a profession. The increase in payroll salaries is not merely a supply & demand issue – payroll is always the extreme example of being candidate short. It’s the recognition of the complexity & demands of what they do. And how this can have a greater impact through technology.
Client takeaways
Payroll Compliance is the key stressor for Senior HR & Finance executives
A risk management strategy is critical to mitigate business exposure to underpayments
Payroll professionals have been elevated due to the innovation of HR Shared Services
Companies that invest in Payroll can support the employee experience & promote higher levels of retention
Payroll can give access to insightful commercial analysis & reporting
Candidate takeaways
Deep knowledge of Payroll Legislation & Compliance improves your value proposition as a candidate
Payroll professionals have access to accelerated career growth in organisations that value payroll as an integral part of the employee experience, not just a transactional function
The future of payroll is in the continuous improvement of the employee experience, with greater access to commercial analysis & reporting
Watch our Hot tips video series discussing these points, in our video library.
Please reach out to mefor payroll opportunities in Sydney!