INDUSTRY NEWS
Industry news
Large employers frequently pay late A SURVEY conducted on behalf of leading human resource (HR) and payroll provider MHR reveals that employees at some of the largest private sector organisations in the UK are regularly being paid incorrectly or late. The survey of HR and payroll managers in companies with 1,000 or more employees found that more than three-quarters (76%) of companies had admitted to failing to pay their employees correctly or on time on one or more occasions in the past year. On average, respondents admitted that their employees had been paid incorrectly or late four times in the last twelve months, with: ● a quarter (27%) admitting errors or late payments had occurred one to three times in the past twelve months, and ● one in ten (12%) paying their employees incorrectly or late between seven and nine times with the worst offenders (8%) confessing to doing so over twelve times. The challenge facing HR and payroll teams to deliver accurate and punctual payments is compounded by the fact that over half of large organisations still use spreadsheets (52%) as part of their payroll process, and over a third (34%) rely on paper timesheets. When asked why their organisations stuck with these methods which are open to errors and miscalculations, more than half of respondents using these methods said it was because it had always been done that way. David Crewe, head of service operation for outsourced payroll at MHR, says: “The responses to the survey highlight that organisations are either blind to the problems their HR and payroll teams face, reluctant to change their way of working or simply don’t have the time to undertake a digital transformation project to fix the problem.” The full results of the survey together with the implications of relying on outdated processes and the benefits organisations can achieve by undertaking a digital transformation of the payroll process are explored in The inconvenient truth of large payroll (http://bit.ly/2XQr3Rj).
Global people services launch SD WORX, a leading provider of global payroll and HR services, has increased its stake in GlobePayroll from 40% to 50.01%, and is providing extra funding to accelerate international market expansion and product development. Together, GlobePayroll and SD Worx Global Solutions are launching a new offering: Global People Services. This preconfigured solution will offer payroll staff an integrated administrative experience (Core HR) in fifteen European countries from January 2020, with other countries following in a second phase. Jean-Luc Barbier, vice-president SD Worx Group and managing director SD Worx Global Solutions, commented: “The global leadership and experience of SD Worx, combined with GlobePayroll’s disruptive HR and payroll software, ensures that we can continue to offer the best customer experience available in the market,”. Jean-Baptiste de Charette, chief executive officer of GlobePayroll, said that “being able to provide an identical payroll administration module to international clients is a key differentiator. “With the support of SD Worx, we can continue our fast growth path and international market roll-out.”
Global payroll complexity RECENTLY PUBLISHED by NGA Human Resources, The 2019 Global Payroll Complexity Index (http://bit.ly/2GTQxqc ) compiles feedback of nearly 2,500 payroll professionals from around the world. The Index, which is published biennially in association with the Global Payroll Managers Institute, the American Payroll Association, the Canadian Payroll Association, and the Chartered Institute of Payroll Professionals, ranks the top forty countries in order of payroll complexity. Key research findings include: ● the General Data Protection Regulation has prompted a global review of national and local data legislation ● rise in ‘micro-legislation’ – city, as well and regional and national rules ● India, Australia and UK leading adoption of robotics and analytics in payroll ● cloud payroll is on the rise at 34%, against 33% on-premise and 11% still manual ● rise in retro-calculations; 10% of companies in US, Asia and Eastern Europe now running weekly or daily payrolls. Mike Eralie, chief operating officer at NGA Human Resources, commented that the Index “draws on the research we started in 2014. This gives us good insights into how the payroll process has evolved over five years. “It also gives authority to say that as we move into the next decade, the need for clarity, compliance and intelligence in your payroll processes has never been greater.”
Apprenticeship levy failure A REPORT – Addressing employer under-investment in training – the case for a broader training levy – from the Chartered Institute of Personnel and Development, finds that the government made an empty promise when it said the apprenticeship levy would boost the amount of money employers spend on workplace training. The levy has meant employers have invested in fewer apprenticeships with starts falling from 509,400 in 2015/16 to 375,800 in 2017/18. The CIPD is calling for the apprenticeship levy to be replaced with a broader training levy, for it to cover all employers with a headcount of fifty or more, doubling the amount raised to £5 billion. A portion of the training levy fund could create a regional skills fund to address skills challenges at a local level.
| Professional in Payroll, Pensions and Reward | September 2019 | Issue 53 28
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