TECHNOLOGY
DavidMcCormack, chief executive officer of Hive360 , asserts that the business world needs to open its mind to the innovative options available to payroll professionals Innovations in payroll have come of age
P ayroll is an essential administration duty, with the smooth and accurate payment of the workforce vital to the growth, success and sustainability of every business in the UK. But payroll is so much more than simply providing a payslip; a comprehensive payroll function is one that is robust, accurate and seamless – and crucial for every business. Traditionally, payroll has been seen as a pure support function that is essential, but very rarely considered strategic. Yet those who don’t regard payroll as a strategic resource are frankly ignoring opportunity. Adding payroll to the strategic plan is essential, not least as it touches every human element of an organisation and is a valuable tool for staff motivation, communication, reward and direction, as well as overall business profitability. Why is payroll so important? Payroll tends to fall between two strategic giants: finance and HR (human resources). However, I believe payroll should be embraced by every business function, to maximise its potentially huge contribution to staff engagement and wellbeing, which is frequently missed. Payroll is a core data manager. The information essential for the payroll system provides deep insight into a business, with much more than only transactional details. It delivers vital operational statistics, identifies actionable trends, and provides essential business information which can make decisions accurate and meaningful. Payroll touches every human resource in an organisation, from the top to the bottom of the corporate tree, and its function and efficiency has a massive impact on the business. If an organisation and its payroll
professionals get payroll wrong, staff purpose and commitment is directly affected, and in turn, staff retention levels and turnover will suffer. If the payroll function doesn’t run smoothly, there’s a negative consequence for the business and its workforce, compromising and negatively impacting employee engagement and satisfaction, which in turn impacts on individuals’ financial wellbeing, along with their loyalty. Time is always a challenge for busy payroll professionals, and this is heightened today with the additional operational challenges brought about by Covid-19, which is placing added demands on resource and technology, as many workers operate remotely from home. Another challenge is compliance with the raft of complex and evolving legislation that govern payroll, its data and operation. Keeping up with all the legislation and ensuring compliance requires time and diligence, and the government’s furlough scheme introduced to help support businesses through the impacts of Covid-19, has created a whole new level of difficulty. Add to these the demands of keeping systems up to date by adapting to new technology, and maintaining an eye on operational and financial efficiencies, and outsourcing represents a realistic solution. The myths and misconceptions around payroll outsourcing run far and wide, however, and could be holding a business back. Outsourcing payroll is a strategic decision that will address wider policies such as efficiency, cost saving, staff retention, productivity, employee engagement and
wellbeing. Further, it provides instant access to specialist payroll expertise and professionals with a duty to keep on top of legislation, the latest technology and compliant systems, cost and time savings, especially valuable for business owners who assume the payroll function as part of their role. Other advantages include the following: ● Fully outsourced payroll consolidates everything into a single, manageable cost, using a system that has to be and therefore is fully compliant, and keeps operations running continuously. ● Outsourcing payroll can add up to £100 profit per employee per year to the business’s bottom line. ● Cost savings from freed-up time, manpower, software and IT equipment, as well as hidden costs such as training, utilities, print costs, and system maintenance. ● Expertise as payroll outsourcing companies are experts offering effective solutions that will give peace of mind that employees and their mental, emotional and financial wellbeing are taken care of. ● 24-hour payroll access, and guaranteed HMRC-approved payroll software. It’s essential to find an outsourced payroll supplier that ‘fits’ with the business so that it feels like an extension of it. So, it’s worth investing time in scoping due diligence to ensure the right provider is identified, by checking it delivers: flexibility – to grow and adapt to your changing workforce and working patterns for full/part-time and agency or contract workers; creativity – a supplier and tech that is tailored to provide a solution for your business; scalability; security; visibility, transparency, accessibility – particularly with how the payroll services are delivered and accessed; accuracy and efficiency; added value – such as routes to boost employee health and wellbeing support, and in turn, employee engagement; cost savings; compliance; proof of compliance/certification; existing client references. n
...valuable tool for staff motivation, communication, reward and direction, as well as overall business profitability.
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 42
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