FEATURE TOPIC
how can these be overcome to ensure smooth collaboration? IH: We all know that the time constraints of the operational activities sometimes mean that change pieces of work become focused on what must be done rather than sometimes the perceived ‘nice to haves’ that would bring in other collaborative opportunities. There is also the challenge of our subject matter and often a barrier is put up due to the sensitive nature of the data stored in the system and also the technical nature of payroll operations. This is where upskilling internal partner departments is critical to ensure that there is a basic understanding of the activities and processes so they can support where needed. The misunderstandings of the activities can be removed with improved communication. Another area to explore is our workforce planning within the team and the design of our roles. Looking at how change, continuous improvement and projects are delivered and ensuring that we have the capacity in the team focused on the right agendas are crucial to ensuring that collaborative relationships don’t get overtaken by the day-to-day needs. We often operate lean teams and as technology gets better, there is an expectation that teams will reduce in size. We need strong leadership and understanding of the operations as to how efficiency gains can be refocused towards working collaboratively and improving the employee experience. SJ: I believe some of the challenges presented to payroll teams are around a lack of understanding within other areas of the business as to what is required for an effective and compliant payroll. Our deadlines are often required by law and can’t be moved, which can be a perspective that isn’t seen by other areas. Saying that we can’t have a payroll cut-off on commit day is not the payroll manager being difficult, but this window is often squeezed by businesses without realising the impact it can have on payroll teams. This could also be said of the ‘big red button’ theory. Many people outside of payroll still have the misconception that we are busy for one week a month, ready to press the button and spend the rest of the time with little to do. We, in the industry, know this is not the case.
a project approach to pieces of work that embed change present a huge opportunity to bring in other colleagues from across the business to work together and I would encourage all payroll professionals to upskill in project skills to support our constantly evolving operations. Sam Jones: The payroll department will often sit within an HR or finance function of an organisation, but can act as a bridge between the two areas. Payroll professionals can assist HR and reward teams in providing a benefits offering that utilises any tax efficiencies available, while maintaining compliance for the finance team to avoid any fines. Salaries are often the largest outgoing for a business, so working closely with the finance team is essential for creating records that are clear, compliant and auditable. With money being an emotive subject, payroll professionals are often the first to hear from staff when things don’t go right. This could be caused by an error anywhere during the process, from generation of information to payment. An efficient and effective payroll team will serve as an important tool for employee relations, ensuring an employee feels heard and supported, while finding a solution to the issue at hand. Using root cause analysis where errors occur, a payroll team can be fundamental in creating robust processes that are smooth for employees, while maintaining compliance. Wendy Muirhead: For payrollers to do their job, they have to have work with multiple departments because the data they rely on comes or goes to those departments. When HR, payroll and finance teams work cohesively together, businesses often see improvements delivered throughout the accuracy and timeliness of the company’s payroll. Steven Watmore: Understanding the business impact of payroll is key. Work with your ‘neighbour’ to not just answer their questions, but also to ask why they need the information. This simple approach will often mean you can supply better, more insightful information that solves multiple problems. What are some common challenges payroll departments face when trying to align with other business functions and
I believe communication is key. Many payroll errors are caused by late information or miscommunication, so having open and active lines of communication is essential in creating a suite of processes that minimise error. WM: For years now, I’ve encouraged payroll departments to get out across their businesses to educate middle managers and colleagues about the actual world of payroll and what’s involved. When something goes wrong in someone’s payslip, often it’s down to timings or miscommunication from line managers opposed to the payroll department’s performance. Most changes of pay are signed off by a line manager. Let’s take the bonus example: just this morning, my husband was told he’d get one this month. He was excited to check his payslip and plummeted with disappointment when he noticed it hadn’t been actioned. Now, the reality was probably along the lines that his line manager either hadn’t signed off the bonus in time for this month’s pay but will now be waiting for payroll to action it in next month’s pay, or he misunderstood the timelines. Education for all middle managers in how to discuss pay-related topics with their team members can change the entire experience for employees. Like my husband’s example, if his line manager had communicated it in a better way and with greater awareness, it could have completely avoided the disappointment and disengagement my husband experienced today. SW: A lack of common terminology and understanding is often a barrier to smooth collaboration. Meaning the same thing but using different language may lead to inefficiencies. Find out more about the problems they want to overcome, as this is often the same for all areas. What advice would you give to payroll managers looking to demonstrate the critical importance of payroll operations to higher management, especially in terms of business impact and compliance? IH: This always seems to be the challenge, which is strange when you consider that payroll processing is probably the one activity most likely to
| Professional in Payroll, Pensions and Reward | December 2024 - January 2025 | Issue 106 33
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