PAYROLL TECHNOLOGY DECISION SUPPORT
Brian Sparling ChMCIPPdip, payroll delivery manager, Ceridian
Historically, payroll has played a critical albeit functional role within business. However, the CIPP’s campaign to promote the important strategic impact that payroll can have is clearly resonating with progressive organisations and companies that use our data to support important decision making. Payroll technology is also evolving – evidenced by the many articles featured in this very supplement – which means that we can equip ourselves with the tools that will help us provide our organisations with strategic insight. So, if we are moving away from a purely functional role, what information can we provide that will have a positive impact? The UK economy is somewhat of a paradox, with low unemployment and a high number of vacancies indicating buoyancy in an uncertain political environment. As a result of this situation, many organisations are experiencing a difficulty in recruiting the best talent, leading to a greater emphasis on talent retention. So when it comes to merit discussions with your best people, a percentage increase each year based on performance and increase in the cost of living is not necessarily effective anymore. Payroll can help businesses be more informed and creative when deciding on a fair and competitive merit increase, such as time in position, compa-ratio, and market rate. Access to salary benchmarking data will help organisations understand what the range is for a position so they can then align it to other factors to make an informed merit increase decision. Address potential flight risks Having the ability to identify employees who are a potential flight risk is essential for companies to hold on to their best talent. However, without the right insight, managers don’t always identify these risks in a timely manner, and as a result, their top-performing employees leave to pursue other opportunities. According to Ceridian’s UK Pay Experience Report , when asked if they are actively looking for a job outside of their current employers, Make more informed merit increase decisions
71% of respondents are either actively looking or at least open to considering a new position if approached. Payroll managers and the wider leadership team need the necessary tools to help identify top performers, assess if they are being fairly rewarded and highlight when they exhibit behaviours that suggest they are a flight risk. Empower managers to have more transparent discussions about pay Today’s employees want more transparency around pay and compensation. In fact, 33% of employees who were denied a raise were provided no rationale behind it, and Ceridian’s 2019 Pay Experience Report found only 26% of workers are completely satisfied when it comes to transparency of information about their pay. Another study from the Harvard Business Review found that in order to retain employees, it’s more effective for employers to compensate top talent at market value and discuss how pay was determined than to pay them more than market value and keep them in the dark about compensation decisions. All of this goes to highlight again that salary benchmarking data, combined with visibility into other employee data such as performance, compa-ratio, and time in position, can empower managers to have these important conversations with employees regarding pay decisions. Optimise workforce planning Employee salary tends to be one of the largest outgoing spends for most companies and organisations so to have information which can help extract as much productivity out of that spend can have a huge impact on the bottom line. Particularly within workplaces with complex shift patterns such as manufacturing and retail, workforce management software helps ensure managers stick to company budget guidelines. Warnings can be set up to flag labour costs, such as overtime, that are outside the budget and need to be resolved before pay can be finalised. Managers can then make changes to
shifts to make sure everything is on target.
On-demand access to the live payroll situation Traditional payroll tools make it difficult for teams to access the time and attendance system until the pay period ends, which means that there is a limited time for pay to be verified and processed. Even then, it’s not uncommon for unprocessed data to be carried forward. The latest generation of integrated time and attendance systems integrate with the payroll system, giving the organisation an immediate view of the current state of pay and allowing managers time to review and adjust before payroll is committed. The future has arrived In short, the future of payroll is already here – and it’s not too late to put the right strategies in place to thrive in this ‘new normal’. But if you wait too long, underestimate its impact on your business, or simply think it won’t impact you… think again!
Brian Sparling ChMCIPPdip, payroll delivery manager, Ceridian Brian has over 20 years’ experience in payroll, working with employers including Bosch, National Galleries of
Scotland, BSkyB, and TSB Bank, and is now payroll delivery manager with Ceridian based in the UK. Brian has worked with HMRC for many years as part of TDSF and a committee member of IReeN. In 2019, Brian achieved Chartered membership of the Chartered Institute of Payroll Professionals (CIPP) by demonstrating his continuous commitment to compliance and best practice in payroll, pensions and reward. In the same year, he was recognised in Reward Strategy’s “Reward 300” index of leading lights across the profession.
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PROFESSIONAL IN PAYROLL, PENSIONS AND REWARD | SOFTWARE DIRECTORY 2020
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