The opportunity in crisis
Jaspal Randhawa-Wayte ChMCIPP, director of product management, payroll, at Zellis, explains why the pandemic has created unprecedented
T he crisis will force change in many areas, but we shouldn’t just look at it from this perspective. We should also look at it as an opportunity to accelerate positive developments in payroll which, for many organisations, were already in motion. ● Adoption of cloud payroll systems – It may come as a surprise to learn that in last year’s CIPP Future of Payroll report, just 25% of organisations said their payroll software was hosted in the cloud. It would be more surprising if we don’t see this figure increase significantly over the next few years, as COVID-19 has done a lot to expose the limitations of on-premises software. In particular, the ‘new normal’ of remote working will make it difficult for organisations to persist with technologies that require their payroll teams to be on- premises to use them, unlike with cloud systems that can be accessed flexibly and reliably from anywhere with an internet connection. Of course, moving to the cloud can confer further benefits to organisations and their payroll teams as they navigate this indeterminate period of business uncertainty. Critically, it can help cut down on unnecessary expenditure by removing the cost of physical infrastructure. It can also provide high levels of scalability and resource optimisation (particularly in the case of the public cloud), so organisations only pay for the computing power they actually use. For payroll teams, the cloud can solve another challenge exacerbated by the crisis: the need to quickly implement software upgrades developed in response to emergency measures such as the furlough scheme. Difficulties in accessing
these upgrades can force payrollers to use manual workarounds, such as spreadsheets, which are more time- consuming and prone to costly errors. So, while an on-premises solution may be the traditional choice for payroll teams, the need for greater agility and cost- efficiency could make an industry-wide shift to the cloud inevitable. ● Payroll and the employee experience – Despite being one of the only functions which directly affects every staff member in an organisation, payroll has not always been considered central to the employee experience. The crisis represents an opportunity to change this perception. It’s more important than ever for there to be a timely exchange of information
fact, research from Willis Towers Watson revealed that nearly half of organisations have increased their pay and benefits communications as a result of the crisis. ● Business continuity and resilience – COVID-19 has put a spotlight on the issue of business continuity and resilience and it’s likely that many organisations didn’t believe payroll could be shaken up in such a way. According to our research (see Issue 61, page 12 of June issue of Professional magazine), 44% worry about their ability keep their processes running accurately and on-time. Do organisations have in place the right contingency measures and support structures in case the crisis is protracted, or similar events occur again? Our research indicates a sizeable number don’t, as 39% say they need to develop more robust business continuity plans in response to the pandemic. This will likely involve identifying the right partners for emergency advice and outsourcing, especially as even very large organisations only have small payroll teams. If just one or two team members became unable to work, it could suddenly put payroll continuity at risk. Another important way to build resilience is to explore opportunities to automate tasks, thereby cutting the time taken to deliver large pay runs, lifting some of the burden off already pressured payroll teams. Again, there are signs that payroll teams will embrace this opportunity, as 27% said they would push for more automation in their operations. Overall, a third (32%) of organisations said COVID-19 will have a long-term impact on how they conduct payroll operations. The real task ahead for payroll teams is determining how best to manage the impact in a way that not only protects their day-to-day duties but also opens the door for real – and perhaps long overdue – transformation. n
between employees and the payroll department. Payroll teams need this
information to ensure individuals continue to be paid accurately as their circumstances change due, for example, to being furloughed or taking emergency time off. At the same time, employees need easy access to their pay and benefits information to improve their financial awareness and wellbeing, especially during these uncertain times. At the heart of this information exchange is an effective self-service system, which allows employees to conveniently view their payslips and benefits statements in their own time, as well as update their own information. This in turn makes life easier for payrollers and human resources managers. Facing a likely recession there may be an opportunity for pay, pensions, and benefits professionals to play a more proactive role in employee financial wellbeing – and the employee experience as whole – through learning and support initiatives. In
...more proactive role in employee financial wellbeing...
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| Professional in Payroll, Pensions and Reward |
Issue 63 | September 2020
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