TECHNOLOGY
Delivering payroll services against an ever- changing landscape
Paul HammondMCIPPdip, national payroll director and Maria MasonMCIPPdip, national payroll partner at BDOUK LLP provide tips on supplying the best payroll service amidst somuch change
A s the payroll landscape rapidly changes, with more organisations facing demands for a ‘working from anywhere’ model and an increasingly complex regulatory environment, it’s inevitable that businesses will question whether they have the right payroll set-up. They will be weighing up the merits of an in-house team versus an external payroll provider, and considering if they can save on costs, while still maintaining high levels of service and expertise. They will want to understand the impact on governance, controls and accountability. They will discover that a one-size-fits-all solution doesn’t exist – every business has its own requirements. They will have had different experiences, whether working with an external agency or managing an in- house department, or even a combination of the two. But once they have reached a conclusion, what next? How do they ensure a new system will work? How do payroll professionals demonstrate the new system is the right system? The purpose of any payroll function is simple – paying people the correct amount at the right time. But it is, of course, so much more than that. A business will expect whoever is managing its payroll to understand the complexities of today’s environment, be prepared for future changes and have the agility and flexibility to adapt to them. For payroll professionals, demonstrating these traits is a vital part of winning over the ‘client’, whether as an in-house team or as an external agency. They need to demonstrate they can provide the highest level of service, and to deliver against that promise.
deliver it to accommodate the rest of the business’s needs.
A spotlight has been shone on many of these aspects because of the Covid-19 pandemic. There was an immediate impact on the payroll function. The lasting effects, however, and changes in working models, are continuing to reverberate through the profession. Many organisations will be asking themselves how payroll will operate in the future. Payroll professionals are at the sharp end of these changes, so what are the challenges they will face as a result? How do they prepare themselves and new clients if there are adjustments to the way the payroll function is delivered?
2. Preparation and infrastructure
There is no one-size-fits-all solution for payroll – a good team will be able to build a solution that works for the business – one that is able to process the necessary data efficiently, securely and accurately. A good team will have appropriate people in relevant roles, within the right structure (and infrastructure) to respond to client demands. It will also have allowed sufficient time to ensure that systems work, controls are in place, any risks have been assessed and the right data is being delivered. The system will be thoroughly tested before going live. It will have been improved and streamlined to ensure what was agreed is being delivered. Not only does the system need to work, but it also needs to be robust enough to develop as demand changes.
There are six key steps to managing this:
1. Relationships
Developing and maintaining all relationships attached to the payroll function is critical to success. These
3. Technology
relationships need to be established from the outset. The strength of the relationship will build trust between the payroll function and the business. Any payroll team will need to be extremely close to the human resources department, but will also have a similarly strong connection with the finance function. This is because payroll data will be utilised across the entire business – there’s an expectation that payroll will take data and
The role of technology cannot be overstated – it’s not just having the right applications that deliver a monthly pay run. It needs to have the flexibility to adapt to
| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 36
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