FEATURE
there’s often no movement for many years? GC: Every business should still build a career path for each role to build engagement and to prepare for any situation. Things change – people leave for all kinds of reasons and businesses evolve too, so despite there appearing to be no growth opportunities, there’s always the possibility that could change. ND: I would recommend that all companies focus on succession planning, regardless of the size of the business. All businesses experience staff turnover at some point, which can happen for many reasons, from retirement to relocation. In addition, as the pandemic showed, companies can change direction at any time, so I would also always advise planning for the best, but preparing for the worst, so that as a business, you’re ready for any changes. HL: Smaller teams should prioritise effective communication with staff, keeping them up-to-date about the organisation’s long- term goals, which subsequently, will help employees feel valued and keep them engaged. While smaller teams may not have immediate opportunities for talented staff to become managers, there can be new systems or methods implemented within a succession plan, which individuals can autonomously manage. So in essence, open and honest communication about succession plans are key, but creating new opportunities and paths of development should also be a focus. NP: This can be challenging where the structure of the payroll function is entirely vertical. Enabling staff to make horizontal moves that allow them to engage with new challenges (such as a key role in a system implementation project or giving them a brief to monitor legislative changes) may be a method of extending the succession cycle. Management training programmes and an acknowledgement that you want to cultivate their ambitions, rather than suppress them, should also form part of the approach here. Are some payroll managers nervous about succession planning because they don’t want to do themselves out of a job? GC: Yes, sometimes, but more often they see the value in having experienced and dependable colleagues. It’s more about developing your staff to support you in your own absences, and mitigating risks that could otherwise threaten a payroll
even if there are ceilings for progression. For example, a smaller company may provide fertility benefits to employees struggling to have a baby, or enhanced maternity or paternity schemes. Others may offer pay-on-demand opportunities. It’s crucial that smaller companies also communicate opportunities that are available. After all, it’s easier for someone to have an influence at board level in a smaller company than in a larger one. Subsequently, the opportunity to have a more significant impact on a business may be more appealing than a smaller influence within a larger employer.
department. You want to ensure you have solid knowledge within the team as it’s in the best interests of the business, both now and in the long term. ND: In my experience, not at all. We’ve placed payroll managers who know that one of the key deliverables in the role is to outsource the payroll function, thereby making themselves redundant in the process. Payroll professionals are wise to the changing nature of the payroll industry, and they’re also incredibly selfless and resilient people, which was demonstrated beautifully during the pandemic. Most payroll managers we work with will always put the business and its employees first, so I don’t think this has ever been an issue. More importantly, there are more pathways now for payroll professionals than ever before, so where one door may close, several others may open. For example, we’re seeing many businesses hiring payroll professionals at payroll director level, so succession plans may now involve advancement to this level of the profession. Payroll is an eminently transferable skill HL: It’s probable that in the market there are certain payroll managers who have the mindset of ‘what if I bring someone in and they push me out?’, but I would say this is rather short-sighted. By guiding and training someone more junior, you’ll be paving the way for your eventual successor, before going on to progress yourself as a strategic and forward-thinking manager. Alternatively, if someone likes working for you and responds well to how you manage them, there’s more chance they’ll stay, and you’ll have longevity in your team. While many professionals are looking for the next step in their career, we shouldn’t assume this is the case for everybody. Some individuals are content with staying in a job they’re happy and settled in, particularly if they have a strong relationship with their manager. NP: I haven’t witnessed much of that in the payroll industry, but it would be naïve to imagine it doesn’t exist. We’ve identified talented people within our operational teams and transitioned them into project and improvement roles, so they’re working alongside existing managers, rather than displacing them. n
If expectations are clear and a
HL: While it’s a fair assumption that it’s more challenging to attract and retain staff in a smaller organisation as there are fewer perceived opportunities for development, it’s important for these companies to highlight the diverse skills and roles a candidate may be responsible for, in comparison to a larger firm. For example, employees have more opportunities to multiskill, as not only will payroll be within their job remit, but there’s also plenty of opportunity to upskill in other areas, such as human resources or accounting. As a by-product, these individuals may have additional CIPP or CIPD courses offered to them, encouraging staff to feel motivated, as well as valued. In turn, it’ll also benefit their CV skillset, and show future employers their wide range of experience. NP: An advantage of a smaller organisation is that payroll professionals may be better able to distinguish themselves and gain recognition for their achievements and contribution. One of my apprentices has a regular slot in team meetings, where she updates everyone about a particular topic recently covered during her training. More experienced staff who have the ‘know-how’ but lack formal training often appreciate the opportunity to be re-energised by more junior members of the team, who are in the active learning phase of their careers. career path is set out, employees will remain committed
How can these small teams focus on succession planning when
| Professional in Payroll, Pensions and Reward | May 2022 | Issue 80 24
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