REWARD
How modern working practices are changing what it means to be a payroll professional
Julie Lally MCIPP, Managing Director of Payroll, Ciphr, explores how modern working practices are truly transforming the payroll profession and considers how to engage with new generations
P ayroll used to be viewed as a back- office function. But now it’s at the forefront of the changes affecting modern workplaces. From figuring out how to use new technologies and artificial intelligence (AI), to adjusting to new flexible and hybrid working arrangements (including overseas ‘work from anywhere’ patterns) and accommodating the expectations of an increasingly diverse workforce, there’s scarcely a challenge affecting employers today which doesn’t concern payroll. And against the backdrop of all this change, there’s the ‘business as usual’ to contend with too. Making sure employees are paid accurately and on time. Navigating ever-growing and complex compliance challenges. And enabling workers to access their earned wages ahead of the standard pay day. Here’s how payroll professionals can adapt to modern working practices while attracting and retaining top talent. How modern working practices impact payroll Businesses across multiple industries have embraced hybrid and remote working models and flexible hours. Some have expanded into overseas working, while
others have introduced performance-based compensation structures. Here’s how these shifts affect payroll professionals. Overseas working adds complexity Payroll teams must ensure compliance with employment laws across multiple countries, and double taxation agreements with HM Revenue and Customs per country. This all adds complexity and time to your pay runs. You might even need to hire in additional expertise. Hybrid and remote working brings security risks Hybrid, remote and overseas working arrangements also add cybersecurity risk. Payroll professionals must adapt their home office environment to meet their organisation’s information security standards. And employers will need to enhance their home-working policies, so they cater for the handling and protection of sensitive data from remote locations. Flexible working means increased workforce planning The increase in flexible working has created a higher demand for payroll teams to manage workforce planning and scheduling. Payroll leaders must
make sure they have the right people, with the right skills, working at the right time. Historically, workforce management was the concern of so-called ‘blue collar’ workers. But the changes we’ve seen in working patterns, hours and locations all mean that ‘white collar’ organisations are increasingly turning to workforce management technology to manage staffing levels. And, often, the responsibility for procuring and implementing such software sits with payroll. AI growth demands more expertise AI-driven payroll solutions are emerging to help payroll teams streamline their processes, detect potential fraud and identify irregular patterns. All of which will reduce errors and improve efficiency. But only those teams that expand their technical knowledge beyond payroll and into AI and technology will be able to capitalise on these gains to their full potential. Workers expect earned wage access Business leaders are more concerned about employee financial wellbeing today, since the cost-of-living crisis began. That’s why we’re seeing earned wage access becoming part of the standard payroll
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
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