Business Strategy using Payroll Data
The payroll department has long been considered something of a functional, back-office process. One of those things you only pay attention to when something goes wrong. This narrow view is changing as keen observers are noticing the sheer volume of useful data flowing through payroll teams on a daily basis. Many are now wondering if this data may have other valuable insights. Business leaders are always looking for new ways to create growth and are always grateful for any new data that can help them make important strategic decisions. They are now asking a range of departments across the business to provide them with data and insight that can help drive growth. Payroll professionals are being asked to deliver more as a result and a global payroll strategy is emerging.
It is now becoming recognized that payroll services have a wider role to play in many company initiatives and business strategy. Payroll data gives intelligent insight into company expenses, where money is being spent and resources are being focused. The right type of reporting delivered in the right way can really add value to a multinational company.
In this article we will examine how this crucial data can play a role in a global business strategy.
Insight leads to informed decisions.
Payroll data often contains crucial information on company expenditure and resources. This data can provide valuable insight to business leaders when it comes to assessing value in their current expenditure. To learn why money is being spent, you must first learn where it is being spent. Payroll professionals can help supply this information. An efficient payroll system will also have valuable data on any new countries a company is considering expanding into. Payroll professionals everywhere have access to crucial information around compliance, risk, data security and regulations. This is the kind of insight that can help business leaders decide whether expanding into a new country or territory is worth their while or not.
This information is not only informative but is a huge help when it comes to forecasting future expenses and assessing whether specific expansion initiatives are in a position to deliver a positive return on investment. Business leaders can learn very quickly where their budget is being spent and how much money the business has to invest in other things. This is particularly important in the modern digital economy where employees are scattered across the world, operating in different time zones and subject to different tax regimes. Comprehensive and coherent global payroll reporting can often be a challenge in these circumstances, but already busy payroll teams are being asked to provide it. Many find they do not have the necessary technology tools to supply it.
Better Technology. Better Reporting.
Software plays a key role in payroll delivery and data reporting. Business leaders now demand real time reporting which contains accurate and informative data from a range of different departments. It is crucial that the payroll department is equipped with the necessary software tools to help in this area. Many payroll professionals have expressed concerns that the current payroll systems they’re using are not advanced enough to meet some of the new reporting requirements being asked of them.
The better the software, the more comprehensive and detailed the reporting, and the more valuable the data becomes. Nobody wants to make decisions based on vague or incomplete data. Investing in the right technology is crucial to producing the kind of data needed for strategic decision making at the highest levels of business.
Software needs to provide an overview while also allowing for filtered or customized reporting by sector or region. Advanced reporting tools and functionality means better and more accurate data can be extracted and delivered to key stakeholders. Investing in quality payroll software results in the kind of data that can help drive business growth for years. Payroll technology needs to advance into the new digital economy or risk being left behind. The payroll function is crucial to employee morale and therefore deserves the same level of innovative, cloud-based technology that other departments in a business seem to benefit from. The business case for international payroll technology is justifiable.
Invest for the future
The way forward is to adopt a new approach to payroll data and invest in modern, cloud-based technology which facilitates the level of reporting required. This means prioritising the payroll department and equipping all payroll professionals with the tools they need to carry out both their daily duties and add value through things like; enhanced reporting, reduced processing times, improved compliance and data security. Software that automate processes and standardizes data gives payroll professionals more time to work on reporting and analysis, this is the kind of work that results in key data being created for strategic decision making. It also helps to reduce administrative costs and reports indicate that it has led to increased productivity among payroll professionals in multinational companies.
A number of key mid to long term strategic objectives can be built into the payroll process so that payroll operations play a key role in the overall objectives of the business. These objectives can be around operational activities, compliance obligations or reporting requirements. Since these are 3 key features of any payroll operations department, it makes sense to create some objectives and metrics around them. A recent article from the Global Payroll Management Institute (GPMI) has referenced these three areas as vital components in any global payroll strategy.
Organizations need to pay attention to the structure of their global payroll operation in order to get the best strategic value from it. Many payroll departments today comprise a mix of global and local payroll providers working together to deliver payroll services to employees spread across different countries and continents. Any successful business strategy here will require a technology-driven payroll solution that helps to collect and standardize data received from these multiple sources.
Help Payroll to help you
Payroll data can play a huge role in global business strategy, but any data is only as good as the tools available to gather it and analyse it. Payroll services is often overlooked in terms of strategic value, but it can be a sleeping giant- all that is required is a new attitude and investment in a cloud-based platform that can future proof global payroll for years. Detailed information and crucial insight are there waiting to be delivered and used. But current processes and out-dated software mean payroll professionals are not in position to do the kind of work needed by leadership teams. This can change by adopting a new approach.
Payslip can help with this approach which focuses on automation, standardization and real-time reporting. Find out more about how your payroll team can become a key strategic partner when it comes to your global business strategy.
For more information on reporting and analytics available on the Payslip Platform contact us today!