REWARD
A focus payroll
on the job market
Gemma Creamer, associate director, Portfolio Payroll, gives a flavour of the current payroll job market, considering the payroll career pathways available
I f the past few years are anything to go by, the payroll industry has proved its ability to adapt, demonstrated its resilience and is now leveraging its new- found recognition by reinventing itself as a secure and stable sector, with enticing career pathways. A clear indicator of the payroll industry’s stability is that vacancy volumes are now above pre-pandemic levels, with signs they’ll continue to rise into 2023 despite the uncertain economic climate. Anthony Macey, director at Portfolio Payroll commented: “This increase in vacancies is reflective of businesses starting to see both revenue and staff growth following some challenging years. It aligns with a growing industry recognition of payroll’s value, the need for specialist payroll staff and the importance of actively investing in payroll functions with modernised payroll systems. These factors, and the increasing salaries on offer within the payroll sector mean the payroll recruitment market is a particularly busy and attractive market for candidates.” The permanent market has had a robust start to 2023, with hiring activity in full swing following a quieter quarter end of 2022. There has, however, been a shift prompted by economic uncertainty, of more temporary to permanent positions and longer fixed term contracts becoming more prevalent. The ‘try before you buy’ mentality is giving businesses peace of
working arrangements and flexibility, which was often constricted by manual processing in roles. This is due to significant investment in hiring of project and technology specialists who are developing and implementing modern payroll processing technologies which can be securely accessed from any location. There is, however, noticeably strong resistance in many blue-collar sectors, such as industrial, manufacturing, construction, catering and hospitality; all with a high majority of on-site employees, who are unwilling to grant these hybrid and remote working conditions. Businesses who are unable or reluctant to embrace hybrid or remote working arrangements will find the experience of attracting talent more challenging and will need to compromise to find payroll talent. “In terms of payroll salaries, there continues to be more parity across the country as location becomes less significant with remote working”
mind and mitigating risk by minimising their commitment to new permanent hires. Candidates In contrast, there are fewer immediately available candidates or willing prospects able to match to these job types. Professionals are now more reluctant to leave permanent roles without a job with long-term security, meaning there’s a talent shortage in the temporary and contract market. This mismatch between business needs and candidate motivations is contributing to a talent war, with pay rates for these types of positions at an all-time high, typically reaching up to 20%+ more than the permanent equivalent salary. This gives those who are pursuing temporary, or contract positions, a significant financial advantage. The payroll talent currently in the market is now more likely looking for an improvement to their circumstances; whether that be salary, working arrangements or benefits, rather than for a career promotion – and they’re willing to wait for the perfect package. Salaries and hybrid / remote working Hybrid and remote working are still the number one candidate desires. It’s recognised from industry and wider recruitment trends that more and more businesses are now able to offer these
| Professional in Payroll, Pensions and Reward | March 2023 | Issue 88 42 | Professional in Payroll, Pensions and Reward
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