FEATURE TOPIC
mean there’s less understanding of practices. An over-reliance on technology may result in errors and oversights, especially if something has been set up or input incorrectly at the early stages. Without an understanding of how pay is calculated, this may go undetected for years and result in hefty non-compliance penalties if picked up during an audit. Unfortunately, I have seen many examples of this, whether in relation to pension contributions, holiday pay or salary sacrifice, to name just a few. Often, those who set things up thought that they had done so accurately due to a lack of training and understanding, and in many cases, this has resulted in the organisation owing employees and / or HM Revenue and Customs (HMRC) money. In one extreme case, this resulted in a business going into administration because of the amount owed in fines, which was ultimately due to a lack of understanding of salary sacrifice arrangements. Therefore, it’s important for organisations to strive for balance in ensuring that technology is optimised to support payroll teams, but that those teams are educated and supported in their payroll knowledge and expertise to ensure ongoing compliance. Julie Lally: Introducing more advanced payroll technology can sometimes lead to a reliance on automation without a deeper understanding of the underlying payroll practices. When technology takes over tasks that were previously done manually, there's a risk that users may become disconnected from the payroll knowledge and regulation changes. This can result in less comprehension of payroll, potentially leading to errors or oversights. However, it's not necessarily the case that more payroll technology always leads to less understanding of practices. Modern payroll systems often come with robust training and education resources to ensure users understand how to use the technology effectively while also grasping the fundamental concepts of payroll management. Some organisations invest in ongoing CIPP training and development for their payroll professionals to ensure they stay knowledgeable about payroll legislation and practices despite the automation. Ultimately, the impact of payroll technology on understanding practices depends on how it's implemented and integrated into an organisation's culture of
training and development. CIPP training and a commitment to staying informed mitigates any potential negative effects on understanding payroll practices which could arise from increased reliance on technology. BS: Not if technology is integrated into the business effectively. It’s key for payroll leaders to ensure that the core understanding of payroll, its systems and its processes, is retained. Payroll staff need that in-built knowledge to look at technology output and question if something is wrong. And, in the case of potential power outages and when critical systems fail, to recognise what steps to take to ensure the business can still run effectively. "Ultimately, the impact of payroll technology on understanding practices depends on how it's implemented and integrated into an organisation's culture of training and development" How can technology progress customer service without removing the personal or ‘human’ touch? VG: We’re starting to see an increase in the use of chatbots to respond to queries coming into payroll departments. This is a great initiative and can allow for the chatbot to handle repetitive tasks and queries, so payroll people can focus on more complex issues and provide a
interactions. This includes making sure that starting the conversation with an associate isn’t an arduous process. The power of having a ‘human first’ approach to provide customers with that tailored experience is crucial in ensuring a smooth experience to retain a sense of trust and loyalty towards your organisation. Does the responsibility for system security become more imperative within the function of payroll, or should this be left to internal IT departments and providers? JK: The responsibility for system security is indeed shared between IT departments and payroll professionals. It's important to understand that data protection is a complex process, involving multiple parties. Payroll software developers and payroll professionals, along with IT departments, play crucial roles. IT departments are specifically established to ensure the security and encryption of our computers and internet connections. They also create preventative measures to avoid hacking. Additionally, many leading software providers in the UK have developed backup systems, with data often stored abroad. Finally, we’re responsible for: l maintaining security l sending reports to shareholders in a secure manner l not sharing passwords with others. JL: Both the payroll department and the IT department share responsibility for ensuring the security of the payroll system. While the IT department is typically responsible for implementing and maintaining the technical infrastructure and security measures, the payroll department has a crucial role in safeguarding sensitive employee data and ensuring compliance with General Data Protection Regulation. Collaboration between the payroll department and the IT department is essential to ensure comprehensive security measures are in place. The payroll department should communicate its specific security requirements and concerns to the IT department, who can then tailor technical solutions to meet those needs. Ultimately, ensuring the security of the payroll system is a shared responsibility, which requires co-ordination and co-operation between the two departments. n
personal touch where needed. By embracing technology and
automating processes where possible, this enables payroll professionals to spend time elsewhere. When considering customer service, it could result in more targeted and personalised communications to employees regarding payroll initiatives which may save them money, for example. BS: To retain that human touch, businesses must additionally provide the option to speak to a human to ensure customers get what they need from their
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 26
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