TECHNOLOGY
can now be completed in minutes with advanced technologies and modules developed by providers, as the art of the possible has become the achievable. Integration with HR and finance systems Modern payroll systems are rarely standalone. Integration with human resources information systems and enterprise resource planning platforms creates a single source of truth for employee data. And, if joined through with finance, creates a single establishment for budget planning and growth control. This reduces duplication, minimises errors and ensures changes in contracts, working hours or benefits flow seamlessly into payroll calculations, without the need for cross-checking information. Data analytics and reporting Payroll is a rich source of workforce data and always has been – the people and the pounds. By leveraging analytics tools, payroll professionals can identify trends in additional variable costs, monitor absenteeism impacts and model the financial implications of pay changes. This allows payroll to provide finance and HR teams with insights which support decision-making, and to play a part in those decisions. Employee self-service Self-service portals and mobile apps empower employees to view payslips, submit expenses and update personal details without payroll team intervention. This means the payroll team’s role has changed to focus more on training on these portals and apps to the wider organisation and on developing the self- service functionality. This not only improves employee experience but also frees payroll professionals to focus on the higher-value work of bringing the employee offering together into a single navigation hub. Real-time payroll Emerging “on-demand pay” solutions allow employees to access earned wages before the traditional payday. This flexibility, made possible by real-time data processing, can improve employee satisfaction and retention. It can also really support employees with current cost of living challenges without burdening them with the concept of loans and debt. Instead, it allows the employee as a consumer to decide
when their pay is taken around their needs. In short, technology is moving payroll away from reactive, end-of-cycle processing
operational and strategic objectives and, importantly, shape change.
Payroll’s role in organisational decision-making As payroll has become more data-driven, its influence on decision-making has grown. The payroll team in its modern form now contributes to workforce planning, retention strategies, cost management, compliance and risk and the diversity, equity and inclusion agenda through pay gap reporting. When payroll insights are fed into board-level discussions, they can influence everything from recruitment strategy to growth planning. Skills of the modern payroll professional The evolving payroll landscape demands new competencies beyond traditional skills. There’s now a greater focus in recruitment in payroll on competencies including compliance awareness, strategic thinking and technology skills, but also a change towards behavioural aspects of communicating, influencing and innovating. The payroll professional of the future, where next? The payroll professional of the past might have been measured solely on accuracy and timeliness. The payroll professional of the future will be evaluated on their ability to provide insight, ensure compliance in a complex environment and support strategic decision-making best summarised in terms of its impact. Technology will continue to automate the transactional aspects of payroll, but human expertise will remain essential for interpreting data, understanding its implications and working collaboratively to improve organisational outcomes. So, let’s ensure we keep evolving as professionals to reflect technology enablement. Far from being a hidden back-office process, payroll is continuing its emergence as a critical partner in the success of modern organisations. Those payroll professionals who embrace this evolution – building their skills in analytics, collaboration and strategic thinking – will find themselves at the heart of business performance for years to come. One way we can shape the direction is by aligning with the CIPP as our Chartered body to ensure we’re driving change together. Bring on the evolution. n
and towards continuous, proactive workforce and cost management.
Payroll as a cross-functional collaborator Modern payroll teams don’t work in isolation. The function is now deeply interconnected with multiple business areas including: HR / people and culture Payroll and HR have always been closely linked, but integrated systems mean the relationship is now symbiotic. HR decisions regarding recruitment, promotions, benefits and terminations all have immediate payroll implications. Payroll data also feeds into HR’s workforce analytics, helping to measure turnover costs, absenteeism impacts and pay equity. Finance Payroll is one of, if not, the largest expense in most organisations. Finance relies on payroll for accurate forecasting, cost control and budgeting. Detailed payroll data enables finance teams to assess the cost implications of workforce changes, bonus schemes or overtime policies. Detailed nominal control accounts also allow for appropriate reconciliations, along with a shared ownership of pension costs. Information technology (IT) With payroll systems becoming increasingly digital, IT’s role is essential for maintaining secure, compliant and reliable platforms. Payroll teams work closely with IT to implement software updates, manage integrations and ensure cybersecurity protections for sensitive employee data, including contingency and incident planning. Compliance and legal From tax regulations to employment law, payroll operates in a highly regulated environment. Collaboration with compliance and legal teams ensures legislative changes are implemented correctly and audits are passed without issues, while always horizon scanning for what may be coming next. Operations and department heads In a collaborative, partnering model, payroll isn’t just a service provider but a business partner, whose insights support
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| Professional in Payroll, Pensions and Reward |
Issue 114 | October 2025
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