Payroll is evolving from an admin heavy, functional department to an influential, data-rich entity. Historically viewed as nothing more than an organisational overhead (harsh but true), it’s now making waves as a key player in strategic planning. And in the continued move towards digital transformation and employee well-being, the strategic importance of payroll continues to increase. Evidence shows that:
- The value of good Payroll has a wide-reaching, long-term impact
- Payroll is becoming influential in attracting and retaining talent
- Payroll technology (outsourced or in-house service) assures compliance and cost-savings for a competitive edge
- Payroll & HR data can provide a wealth of real-time business intelligence based on insight not hindsight
From improving employee engagement to unlocking vital intelligence, here are some of the hidden gems your Payroll operation could provide.
The value of good Payroll vs. poor Payroll
Whilst we’re pretty sure no one is championing poor Payroll, lack of Payroll accuracy remains a real problem affecting organisations today. Even a small discrepancy can deeply impact the employee and become a very expensive mistake for the employer leading to negative brand sentiment, PR disasters and penalties for non-compliance. One in five British workers (21%) has changed jobs after being paid late or inaccurately.On the flipside, Payroll delivered in line with expectations provides value in terms of satisfying your people and driving the type of positive PR you can’t get enough of.
The value of employee engagement
Archaic Payroll practices won’t do your organisation any favours compared to a next generation Payroll solution. Equipping Payroll teams with state-of-the-art tools and technology means they can ditch repetitive tasks. A cloud-based, automated Payroll solution provides them with more time to focus on strategic projects, boosting their job satisfaction Employees want this advancement too. In a connected and mobile world, they are seeking to interact with self-serve systems to update and check their personal data, request holiday, download their online payslip on the go and engage with a digital assistant. Such Payroll transparency leads to a more thriving and productive workforce and will attract job applicants seeking a cultural fit with potential employers.
If you’re already outsourcing your Payroll, or you’re thinking of making the move, here’s a stat to consider – outsourcing your Payroll can reduce your TCO by around 20%. Consider the direct and indirect costs absorbed by the provider such as IT ownership, international-grade security, disaster recovery and secure data exchange to HMRC. In the move towards digital transformation, data protection has never been so relevant. Indirect cost savings relate to access to on-hand expertise rather than paying out for consultancy fees and IR35 training.
For the majority of organisations, analysis of the pay run has typically been manual, time-consuming and susceptible to errors. Today’s best-of-breed Payroll systems can provide the data that the C-suite is looking for. Offering impressive analytical capabilities and data mining to investigate trends such as absence, rewards and overtime, market leading systems churn out insightful reports, charts and real-time dashboards with no requirement for IT or pivot table experience. Machine learning (AI) has taken this analysis to the next level, using predictive analytics to forecast costly activities or event triggers.
From maintaining a productive workforce to driving innovation, there is hidden value in Payroll that can only be extracted through a best-in-breed Payroll solution. Professionals rank being digitally-savvy as the top skill needed in a Payroll role (39%) by 2025 as its remit it evolves from administrative to strategic.