Strategic value of payroll section sponsored by
STRATEGIC VALUE OF PAYROLL
Change in the payroll profession is constant, and payroll professionals have repeatedly shown how adaptable they are to the evolving circumstances around them. The pandemic radically changed what work looks like for most professionals, and payroll was no exception. Payroll teams had to assist in making many strategic decisions, which transformed payroll’s relationship with other departments, its involvement in strategy and the way payroll professionals work. One of the biggest developments in recent years has been the large-scale uptake in remote working or flexible / hybrid working models. For many companies, this was introduced as a necessity when lockdown measures stipulated that, if possible, everyone should work from home. However, it seems many companies have since adopted this permanently after realising the benefits that came with it.
71% of respondents said that flexible or remote working has been introduced to their teams since the pandemic. Only 19% confirmed they’re still in the office full time, and 66% currently have a hybrid working model.
Where does your payroll team mainly work now?
15.48% At home full-time
18.83% In the office full-time
65.69% Hybrid working
This trend is expected to continue, with 74% of respondents foreseeing a permanent hybrid model in the future. We also appear to see a preference for this style of working in the media and hear this feedback regularly from members. An agile and flexible working environment is more common now than ever before, with some UK employers trialling a 4-day work week as part of a pilot programme launched by the 4 Day Week Global Foundation. The idea that more working hours equate to more productivity and output is being challenged, and these employers are willing to pay a full-time salary for less days at work. Payroll professionals would have to consider the knock-on effect on timetables if this was to be implemented, as Bacs submission deadlines and cut-off periods would need to be adjusted accordingly. The increase in remote working has had many implications. Recruitment, communication, digitisation and productivity are all factors affected by the increase in remote working. We must also consider the importance of data security as more data is being handled remotely, outside of the direct control of the employer. Payroll professionals manage a lot of sensitive information; effective training and adequate procedures must be in place to protect data protection. Education is key, so employers must still encourage practices like locking the screen when away from the desk, and not leaving sensitive information on a printer or in sight. 59% of respondents believe that the increase in flexible and remote working will result in increased productivity, whereas 8% think productivity will decrease. Although every team is different and there’s more room for research in this area, we can expect more employers to trial this, as the benefits become apparent. When asked why employers are making changes to working arrangements, the highest-ranking response was to increase staff retention, and the second was to offer a better work / life balance. This gives insight into the relationship between employees and employers in the current payroll job market. Recruitment seems to be difficult now with many vacancies available and limited numbers of qualified payroll professionals for these roles. This could be attributed to the fact that qualified, experienced payroll professionals are now being offered more flexibility and benefits, as employers compete to both attract and retain individuals with key payroll knowledge. Current changes and trends could soon become permanent if the need to compete for payroll talent continues. The pandemic appears to have influenced trends in other areas too. For example, some comments indicated that some businesses outsourced their payroll because of the pandemic whereas others disengaged with service providers and brought payroll in-house. Some mentioned how the payroll role was covered by other departments in periods of staff shortage, while other companies repatriated work, making offshore employees redundant. Other respondents commented their relationship with their employer had changed and that asking
3
Made with FlippingBook - Online magazine maker