FEATURE TOPIC
I believe technology can help us to explain what payroll does, through the use of infographics, links on company intranet sites and signposting to third parties such as the CIPP, HM Revenue and Customs (HMRC) and the Advisory, Conciliation and Arbitration Service. Then there’s the future of artificial intelligence technologies – which could walk the user through the journey of payroll. We have multi-generational workforces who are at different stages of their financial journeys and with different opportunities. How does communication need to be adapted to make it appropriate to each audience? KB: We can never assume an individual’s understanding based on our own assumption of someone's position and financial standing. In all cases, I feel you need to go back to basics when explaining all things payroll and pensions. As payroll professionals, we have a lot of technology to hand, but we do need to adapt our communications to the individuals we’re communicating with. This links in with the question around explaining the complexities of payroll to a non-payroll person. All communication should be kept simple and should avoid the use of jargon. Where necessary, make use of the tools available on HMRC’s website – for example, the income tax and NI calculators. Finally, if you can see your explanation is remaining unclear to an individual, look for ways to say the same thing in a different way. SP: Communication is communication, but I think the important thing is that we’re communicating and giving employees the opportunity to have a voice. How you do that will depend on the type of workers you have within your organisation – office-based, out in the field, shift workers, etc. This will impact how you go about communicating to your different audiences, whether it be face-to-face, through messages on payslips or via email. I have worked with organisations that can’t rely on electronic communication because their employees are of an older generation and / or are field-based. Therefore, they rely on paper-based messages which would be collected as part of the start of day process. Likewise, in certain work environments, people are
sceptical of technology and still want to talk to a real person. Overall, the key is ensuring employees can engage and that communication is two-way. However, what we communicate isn’t so much the issue; it’s how we communicate to them that I think is important. A lot of time, the problem is that people find solutions and then manage the problems, when instead they should be understanding the root cause of the problem and then finding solutions. ER: Very good question. I recently attended a seminar where the various generational needs were discussed, from baby boomers through to Generation Z and onto Generation A. What I learnt was that each group had different approaches to work. When we speak of Generation Z, for example, the need to think about retirement can be challenging, in particular in a cost-of-living crisis. However, focussing on the work journey and the importance of saving has to be explained very differently to someone from Generation X, where you might work with pension companies to start flagging potential risk, for example. How do we ensure we aren’t slipping into advice territory when we educate employees, family and friends on pay, pensions and benefits? KB: Be clear at the start that you’re unable to advise what an individual should do and that you can only explain the facts of pay, pensions and benefits. Explaining how tax is calculated is different to saying you think they’re on the wrong tax code. Having an individual say they think they’re paying too much tax and asking whether you can look at it for them is common. When explaining tax, it’s important you confirm that, based on the tax code you have been provided with by HMRC, the tax deducted is correct (or not). If they think they’re on an incorrect tax code, we must be clear that we don’t make the decision regarding the tax code to be used and they will need to contact HMRC directly. It’s about knowing our boundaries as payroll and reward professionals, and clarifying those boundaries with employees, family and friends. We can suggest that an individual may want to seek further information from the relevant bodies such
as HMRC or their pension provider or even from an independent financial advisor. By focussing on sharing factual information, we’re sharing our knowledge so they can increase their own understanding to make informed decisions about their pay and / or pension and benefits, and seek advice from qualified advisors should the individual feel they need advice. When explaining anything payroll and / or pensions and benefits, I always sense check what I’m saying to make sure I’m providing the facts only and not slipping into providing advice. If someone asks directly, “What would you do?”, I always make sure I respond by saying I cannot advise you and what I would do isn’t relevant, as all individuals and their situations are different. Always be on your guard not to move into advice territory. SP: Personally, I think it’s a very fine line but the answer is relatively simple. We can provide guidance and handy hints, but ultimately it should be about educating people on where to go to find the answer or seek advice. Businesses should be exploring resources which can offer advice. This doesn’t necessarily need to come from within the organisation but can be part of the benefit package offered. This way it’s easy for payroll to create the delineation while offering a solution. ER: There are two things worth considering here; one, we aren’t financially regulated and, two, we’re trusted professionals. It’s a challenge to separate these sometimes so it's quite important to recognise the difference.
"Give people the ability – they end up learning a new skill"
Having resources to hand is important, such as promoting personal tax accounts or the CIPP’s payslip tool. Ensure company intranet sites are up to date, using links to other providers such as HMRC training videos. More organisations are moving towards 'self-help' approaches, which make more sense. A relevant quote is “Give a man a fish, and you feed him for a day; teach a man to fish and you feed him for a lifetime”. Give people the ability – they end up learning a new skill. n
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
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