Professional December 2021 - January 2022

FEATURE TOPIC

The strategic value of payroll

Jerome Smail, business journalist , speaks to a selection of experts about how payroll professionals can influence the overall strategies of their employers

T he widening operational remit of payroll is a subject frequently discussed in the pages of this magazine. But if the function is so important in so many different areas of an organisation, why shouldn’t it have more influence? So, looking beyond the fundamental requirement of paying employees accurately and on time, how can payroll professionals influence their employer’s strategy? To find out, I asked some leading experts in the field: ● Jason Davenport MCIPP MIoD , CIPP non-executive director ● Elaine Gibson MSc ChFCIPP MCMI FHEA , director of people and quality at Dataplan ● Ian Hodson MSc ChFCIPPdip , head of reward/deputy director of HR at University of Lincoln ● Samantha Johnson LLB(Hons) ChMCIPPdip , CIPP policy lead. Will the label of ‘payroll’ forever hold back the department and associate it with operational rather than strategic activities? Jason Davenport: All areas of business

get rebadged over the years. Individuals drive for that change as much as organisational departments themselves. Payroll has moved on from wages and may well become something more aligned to ‘remuneration’ in the future, perhaps. It is for the leaders of the payroll service (whether in-house or outsourced) to ensure that the function is given the credence it deserves.

are met and accuracy and timeliness are all key to payroll. So is ensuring that translates to 100% of employees receiving accurate net pay, from which they can base all their financial decisions. All the rich data captured by payroll creates a very powerful lever if considered alongside total cost of operation for the business. Labour costs, pension costs, reward packages, retention, sickness and other productivity measures are all a very significant contribution in the success of the business if managed well. Just as sales is seen as critical, the role of payroll is critical, as has been recognised in the recent pandemic, with all the positive support to payroll professionals shown by central government. Elaine Gibson: I am sorry to say, yes, I think this label hinders associated professionals. If the business is payroll, e.g., a service provider, it puts payroll front and centre, as clients recognise and require the professional service, but if the service is in-house then the recognition does not seem to be there. The employees are concerned only with what hits the bank on pay day. Perhaps, if there was a label related to taxation, that might make people notice more but that

The important aspect of being recognised as a key function

The important aspect of being recognised as a key function within a business is to ensure value is gained from the service provided. This can come in multiple ways – customer surveys, ensuring all key performance indicators within a business is to ensure value is gained from the service provided

| Professional in Payroll, Pensions and Reward | December 2021 – January 2022 | Issue 76 36

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