If staff are the beating heart of an organization, then payroll is, in many ways, the blood. When done correctly, payroll has the potential to be a
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Ensure payroll is at the core of any HCM transformation
The most common mistake I see is a business leaving payroll until last or treating it separately from its broader human capital management (HCM) transformation. This can lead to inadvertently creating an overly complex flow of data that can be a time-consuming and expensive challenge to fix. To ensure this does not happen, it is important that organizations don't let payroll become an afterthought in their HCM transformation, but place it front and center.
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Understand the four ingredients of successful payroll
If there is one thing I have learned about payroll, it is about understanding the four fundamental ingredients: data, people, process, and technology. Organizations may get excited by the latest payroll technology on the market but not pay enough attention to the quality and availability of their data. Or they may have the right processes in place to ensure accuracy, but not have the in-house expertise to bring them all together. Like any great dish, it is important that all the ingredients work together in balance.
Think long term
I am yet to meet an organization that wants to change its payroll solution, but I meet many that have to. When this is the case, it is important not to go for a quick fix. When choosing a payroll solution, it is important that the organization considers what it needs over the long term and questions the longevity of its choice. Yes, solutions should be evaluated on the basis of how well they work today. However, take the time to consider the direction the solution and the vendor that produces it are taking. Can you see a track record of investment and a roadmap that aligns with your future needs?
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Understand where the value and costs sit
Unfortunately, all too often organizations place undue weight on features that are going to have little impact. It is important not to lose sight of the fact that the priority of payroll is to ensure staff are paid accurately and on time, whilst safeguarding compliance and security. If any of those were to fail, the impact would quickly minimize the value of any other feature.
Payroll is like a utility within the business that staff just expect to work. Yet, it takes a lot to make payroll happen and to ensure all data remains safe, and that the business remains compliant to increasingly stringent regulations.
Ensuring one version of the truth
A scalable, unified payroll platform can streamline payroll processes across an organization's entire international footprint and brings all data into a single, consolidated view. This is key, as it can reduce overall costs and errors, whilst supporting compliance and enhancing the employee experience.
Rather than relying on a piecemeal approach across the business, organizations should always strive for consolidation. By ensuring one version of the truth, they will be able to unlock more informed decision-making, increased security, extra flexibility to integrate future markets, an enhanced employee experience, and quicker reactions to changing industry trends and market events.
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Do not run before you can walk
Organizations need to ensure that their payroll keeps up with the rapid pace of change within modern business. The longer they stand still or patch together existing solutions, the greater the risk. To help drive innovation, efficiency and growth across the business, organizations must develop a unified, global, secure, and resilient payroll model.
While many organizations realize the benefit, all too often they are unsure how to put a modern payroll strategy in place. More than anything, my advice is not to run before you can walk. Payroll can't progress from covering the basics — paying staff — to the level of driving strategy if employees can't rely on receiving accurate payslips, or if managers can't access the data and reports they need quickly and easily.
