TECHNOLOGY
I ’ ve spent two years working in a payroll analytics role. On the surface, it can seem like a role that only the largest of companies would be interested in – big data sets looking at trends in spending from department to department or for broader reporting like the gender pay gap. While these functions are an important part of the role, there’s also a need for every payroll department to constantly push itself to engage with new and emerging software and programs to assist with day-to-day operations. Consider the vast amount of paper that’s used. In 2023, the UK’s total consumption of paper and board was approximately nine million metric tons. That’s over 100 million trees lost to something which, even though everyone has a smart phone in their pocket, is environmentally harmful and economically inefficient. But so many businesses still require inked signatures and copies of documents on paper. Tackling this problem overall is obviously more than a single department can handle, but small changes can make big impacts. Agreements with managers and staff that email signoffs can be accepted in lieu of signatures is the first step in allowing standardised forms to be produced and sent out. These templates can be completed online, have digital signatures added (if required) and emailed back to payroll with no paper being used at all. We found that once these stepping stones were in place, there was a freedom to look further into what was available. A ticketing program where forms can be created is a next giant leap. The ability for data to be compiled in the background into loadable .csv files, for example, saves an incredible amount of time for data entry. This has the roundabout effect of making data reporting easier and more detailed, as payment requests can be followed on data sets from creation to closure. As an example, we can look at overtime. This is an ever-changing set of payments for different staff members which will always need to pass through at least two or three people before payroll can make payment. A paper- based business will rely on having a stack of overtime forms in the office, written out on sheets, sent back to the office, signed by a manager, checked by an
administrator and input by a payroller. In 2025, there’s no reason for four people to be wasting so much time on this process. The implementation of a form or software to record the data, and a payroll process in place to collect and upload it: l takes away many of the steps l keeps a record of everything that happened l ensures data initially entered isn’t manipulated in any way. “With some engagement with technology which is firmly established, payroll departments can save time and money while improving the reliability of the department, making The process need only be that the employee opens an app or completes a form, the information then sends a message of approval to the manager, and once approved, the information then appears on a data set. The data set can then be downloaded into a format recognised by the payroll software or it can integrated with the software to transfer the data automatically. When these operations become functional, they can substantially reduce the amount of time spent inputting data by payrollers. Payroll professionals can then get on with what they need to do – ensuring that all the data going through the payroll is being correctly processed as per company rules and legal regulations. Inputting multiple separate pages of overtime is also fraught with danger. Hit a wrong number, or miss out a decimal place, and if it sneaks past final checks that can be a big headache in terms of an overpayment. With some engagement with technology which is firmly established, payroll departments can the business a better place to work overall”
save time and money while improving the reliability of the department, making the business a better place to work overall. The ability to then be able to look at this data ‘from cradle to grave’ should not only be the remit of medium and large sized companies. Although it may not be useful to analyse payroll data in a small company every week or month, bi-annual or even quarterly reviews could be used to notice trends. Once the data sets have been created, the data can then be brought into Excel or Business Objects. From there, payroll analysts or managers can get to work on interpreting this data fully. Once payroll data can be divided into elements on large data sets over many months, trends will appear. In the case of overtime: l departments can be isolated for high or low levels l times of year can be identified as being in high demand l signoffs and approvals can be closely monitored for fraud. When this data is compiled, the answers given to questions by senior management no longer become ‘reckonings’ or ‘assumptions’. Instead, they become real, tangible pieces of data. You can’t argue with the numbers! This can then assist, as is quite pertinent now, with cost saving measures being introduced. The payroll analyst can also then lead with new schemes and programs that become available. Due to the myriad changes payroll is faced with, it can be difficult for a company to stay on top of these developments. However, having a dedicated person on the payroll team to see what’s new and what can work for the business can be invaluable. For example, taking on apprentices is something any business can do and is actively encouraged by the Government. Due to National Insurance increases, a payroll analyst could identify areas where hiring apprentices would be much more cost effective for the business. This is just an overview of some of the differences a payroll analyst (or at least thinking like a payroll analyst) can make with minimal effort. Learning some Excel, agreement on digitising signoffs and taking a capital hit on new software will allow departments to function better: less mistakes, clearer reporting and consistently finding new ways of optimising input and analysis. n
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
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