FEATURE INSIGHT
Flexible future “One of the most stable elements of any organisation is its payroll function. It’s a business operation that will always be part of any company without fail. However, the next few years are likely to bring key developments in the industry, with many changes to come in response to increased globalisation and new technologies. ...possibility of new ways of working, with better efficiencies and more accuracy “In an increasingly international business sphere, flexible global payroll capabilities are of growing importance to businesses worldwide. New technologies such as blockchain are likely to bring even greater innovation in the future, delivering increased efficiency and ease in making cross-border payments. The industry is already exploring blockchain technology as it becomes more widely understood and adopting this has the potential to radically change processes and business models, such as payments. “Pay and reward analytics are also likely to see innovation. As companies continue to struggle to attract and retain skilled people, the demand on understanding the effectiveness and competitiveness of their people compensation will heighten. This is
Having faced the rigours of GDPR, it’s important that businesses can continue to meet future changes in regulatory compliance. For example, we expect the UK government to renew its focus on the gender and diversity pay gaps, encouraging businesses to analyse their people data in new and different ways. It is much easier to adapt to those changes when all employee data is held in one system. “It also helps both the business and its employees to plan more effectively. From a business perspective, it provides full visibility of payroll costs, making it easier to understand the total cost of ownership of the employee base. It also makes workforce planning easier, allowing businesses to calculate the cost of moving resource from one place to another. For employees, it gives them better visibility of their total reward, so they can understand their value to the business and tie it back to performance.” Mark Judd, vice president, HCM product strategy EMEA, Workday “It’s clear that the correct use of data is paramount for the success of a business and there is no exception when it comes to the payroll department. It provides the most reliable data in the company, which is why it has to increasingly play a central role in improving business operations. “What we are already seeing, and will continue to see over the coming years, are more businesses starting to exert this influence and capitalise on what payroll has to offer in terms of data and analytics. In fact, recent research from SD Worx revealed that up to 87% of business leaders are now asking for employee payroll data to inform business decisions. For this to continue, it will be vital for the payroll teams to win the trust of the wider business in terms of applying insights from data gathered. “Beyond data analytics, businesses invest huge amounts of time and money in implementing the latest technology such as AI, and payroll and HR will have an essential role to play in preparing the workforce for this technology. Teams need to understand how and why such technologies will change the way they work for the better in order to ensure adoption reaches its full potential.” Steven van Hoorebeke, chief executive officer, SD Worx Group
likely to drive a need for solutions that will enable limited resources to be targeted in the most effective way.” Jeff Phipps , managing director, ADP UK “The future of payroll lies in the cloud. New technology gives rise to the possibility of new ways of working, with better efficiencies and more accuracy. Cloud platforms can enable better collaboration and flexibility around workflow, especially for larger companies and bureaux. “With cloud platforms, everyone can access their data, albeit with different views or interfaces. These interfaces can be tailored to what the viewer wants to and needs to see at any particular point in the payroll process. If everyone involved in the process can collaborate using one system, data is more secure, which is important for GDPR compliance, and removes the need for data to be collected and shared over email and spreadsheets. Better collaboration enables better accuracy and the ability to spot errors and correct them in time. “New technology is also faster and more scalable. Cloud-based web applications deliver a richer user experience and can be designed with the user in mind. This means that an interface can be delivered as a business application, used by lots of different people in a business rather than a back-office compliance product that only a specialist can operate.” Catherine Pinkney, founding partner, Paycircle n
| Professional in Payroll, Pensions and Reward | February 2019 | Issue 47 48
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