Technology
We have too many items of complex legislation, so it is not transparent for employees.
better than they used to be? They are not getting it wrong because technology is helping them? MP: Customer skills have decreased slightly. People can sometimes avoid using the phone and communicate via emails instead. Customer service is an important skill for payroll professionals to hold. Communication With 93% of respondents using email, phone or face-to-face methods to answer queries, and only 2% using chatbots, will this technology play a part in the long- term future of payroll? LS: Financial institutions are using chatbots and many people are happy to engage in this way. It is strange that people do not want to engage with this in payroll. VG: Payroll is a complex and emotive subject. Using chatbots for basic tasks is fine but pay is emotive with lots of elements impacting it and people want reassurance that it is correct. SW: A chatbot should not replace a person who is adding value. Chatbots should signpost to the relevant person. They should be designed to absorb the basic questions, such as ‘what day is my pay day?’, and then the experienced and knowledgeable people deal with complex queries that come through. RG: Pushing people to chatbots first, only to find out they cannot help you will frustrate people when it takes fifteen minutes just to speak to someone. MP: We use chatbots because they are quicker than email, more responsive and more visible. Automation can work, you just have to invest in it. It is only as good as what you put into it. RGi: Perhaps the reason it’s not prevalent in some payroll departments is because they do not have the time to build up a bank of questions. Payroll Policy 64% of respondents agreed that a single enforcement body would be a positive step forward. How will this policy decision shape the payroll role in the future? MS: I would like to understand if they will be specialists in their areas? Will they be looking for fault and interrogating the data for any technicality or will they be more pragmatic? Holiday pay is an area of real complexity. SW: What is the aim of doing this? Employees should be protected but
future development. What part can payroll play in future pay strategies? LS: Employees see it as a plus where employers are transparent about their pay strategy. Employees feel they can rely on it, and that action is being taken to close the gaps. These ethics and values are positively received in the market, so more employees will seek that transparency. EH: Often pay is kept confidential because for many employers, pay is unfair. WJ: For employers, there can be a challenge in releasing salaries because competitors can headhunt key talent and draw them in with higher salaries. It pushes the cost of employment up and ultimately increases customer costs. EH: Is payroll strategy then about analysing the payroll and benchmarking internally and externally? This often already exists in reward, but not all companies have reward teams. VG: Often this is done within departments, but it is not joined up with the rest of the business. Payroll teams are in a good place to join up with the rest of the business and make sure reward is fair across the company. RGi: This is often reliant on role structure being in place across the organisation, and many SMEs use spot salaries because it is not in place. Arguably though, it is the only way we reduce the pay gaps.
employers should not feel attacked by this — employers get things wrong because legislation is unclear. The bodies should be clearly accountable for what they want to achieve. MP: Will they use this body to recoup money from the coronavirus schemes? In Australia, there is a lot of naming and shaming for holiday pay and minimum wage. KB: Her Majesty’s Revenue and Customs (HMRC) will audit on current rules and some small companies will not have the knowledge and insight to prepare for an audit like this. SW: We have too many items of complex legislation, so it is not transparent for employees. This change needs to come from policy makers, not just the businesses with employees in them. Maintaining compliance 82% of respondents look to webinars to help understand how to implement changes in legislation, how will technology play a part in developing the skills and understanding of payroll professionals? KB: A lot comes to payroll because people don’t trust HMRC. People are not getting a great service from HMRC. RGi: They see payroll as being on their side, not HMRC. We need to be thought leaders in the profession and start to roll out education to our employees and provide financial support. This feeds into the well-being piece. SJ: The success of pay as you earn (PAYE) is also its downfall. People forget the relationship is between them and HMRC, not their employer and HMRC. Payroll can help people understand that they own their own tax affairs, the employer simply works as an intermediary. RGi: I think we can share messages better as companies and software providers, for example using payslip messages to give people clarity. Payroll Strategy 59% of respondents consider that pay strategies should remain confidential. Gender pay gap reporting is in place and ethnicity pay gap reporting is a potential
Succession Only 41% of respondents had a
succession plan in place. Is the payroll industry investing enough in future talent? MP: People outside of payroll do not really understand what we do. We need to change this perception. No one should ever ask, ‘what is payroll?’ We need to promote the industry to the younger generation. SW: Payroll needs to rebrand. We need to talk about how many millions flow through payroll and draw people in. It is all about marketing. We need to make it sexy. SJ: Branding is important, but we also need to be proud to work in payroll. We need to tell people why we love what we do and be role models for the industry. Shout about payroll to promote and support the future of our industry. n
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
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