for more flexibility regarding where and when they work is now easier. Whatever the impact on different payroll teams, businesses have been forced to try new things. Increased experimentation and experience mean that decision makers will be better informed for the future. Many will have learned from their successes or mistakes. In any case, the payroll function’s versatility has most definitely been accentuated. Payroll’s strategic influence within an organisation largely depends on how the role of the payroll function is perceived. 55% of respondents from an in-house payroll team said payroll is perceived as a ‘back-office’ function in their organisation. This indicates that many payroll departments are yet to expand their strategic influence and aren’t valued in the same way as other departments. Of those who stated it’s still seen as a back-office function, 33% did say this is changing. As the perceptions surrounding the role change, so does the level of responsibility offered to payroll professionals. 32% of respondents from large organisations, who have 16 or more people in their payroll department, confirmed they have specific payroll representation at director or partner level. Although not a majority, 32% is significant and indicates that larger organisations put greater emphasis on the strategic involvement of the payroll department. Only 6% of respondents from smaller teams had the same representation in their company. 28% of all respondents have an independent payroll department, whereas 24% are under human resources (HR) and 42% sit within the finance department.
The payroll department is undoubtedly involved in other spheres of strategy. The following examples demonstrate how payroll’s value extends beyond administration:
● 64% of respondents said they’ve been involved in decisions on implementing compliance strategies
This highlights a recognition of the role of payroll professionals in keeping businesses on the right side of the law, protecting their organisation or clients from financial penalties, as well as damage to their reputation.
● 56% confirmed they’ve had an influence on decisions regarding technology
Technology shapes the way work is done and the variety of solutions on offer has a huge impact on efficiency and costs. For example, decisions about which payroll software to use, or which communication channels will work best for the team, all affect the organisation. 43% of respondents confirmed they were involved in leading system implementations.
When asked which areas will see increased involvement in the future, the following results were provided:
Audit and compliance
Leading system implementations
Supporting IT solutions
Mental and physical well-being
Financial well-being
Billing client fees
Setting service rates for clients
Company policy creation
Business strategy
Rewards / benefits packages
Marketing / branding / advertising
Client acquisition / retention
Customer service
Providing guidance, training and support to other departments or clients
Other (please specify)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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