Introduction: We have invited members of the Payslip leadership team to give their views on some trending topics in their respective fields. This is the second in our series of blogs from Payslip leaders.
Here, Mary Holland, Payroll Evangelist here at Payslip shares some insight on some potential trending topics in the global payroll space.
It is a new year of global payroll delivery and management at multinational companies around the world. Many of the challenges and opportunities are being carried forward from prior years and need business optimization project attention.
From my conversations here at Payslip with global clients as well as what I have heard at industry events, there are a few recurring themes that I find interesting as they are aligned to my own views.
Here is my view on just a few of the things that we may see trending this year.
1 Cost efficiency and optimization
This is about introducing efficiency in global payroll delivery and management to drive continuous business improvement and reduce overall operational costs. It can happen using payroll software, automation, digitization, and the integration of payroll data from multiple sources such as Human Capital Management systems, financial services applications, time and attendance software as well as benefits, stock and equity. It is about having the best solution for business needs and simplifying processes. Asking questions on who, what, how, why, and where we are performing a task and is this a modern approach that will support the organization now and in the future.
I expect global organizations to continue to standardize payroll processes and develop a single way of working across countries. This will include a review of their current manual processes and genuinely question if continuing with such outdated methods is sustainable and worth the inevitable accuracy and compliance risks that go along with it. I'm expecting them to leverage and use AI powered automation and next generation technology to deliver their payroll with as much simplicity as possible and in a way that benefits the wider organization. Delivering payroll in this way will serve to optimise costs and ensure that greater overall efficiency results in further cost reductions across payroll.
2 Data Security
Most professionals agree that global payroll data contains highly sensitive and personal information that must be protected in line with the highest industry standards and regulations. It is unacceptable in 2024 for sensitive global payroll data to be processed inside excel spreadsheets and transferred via e-mail.
I am expecting that more attention will be given to ensuring that all employees ( specifically professionals in HR and global payroll teams) understand and are aware of company policies and notification protocols around any payroll data issues. I think you will see more and more organisations prioritising data security training for all global employees, and I expect the importance of global payroll data to be a part of the training exercises.
It is very important to note that there is no one-size-fits-all when it comes to compliance and regulatory obligations. They differ from country to country and every organisation is responsible for ensuring that they are fully up to date on the latest legislations and the different data privacy rules across the globe. Each individual country will need to be reviewed and all relevant information and regulation requirements need to be shared with the business operations teams.
3 The Employee experience
Here, I am expecting payroll well-being and employee wellness in comp any culture to be more aligned in 2024. Creating a single unified employee payroll experience for the global workforce, regardless of location can be a really important step and I expect more and more global organisations to focus on this. This can be a really positive experience from both a payroll well-being and a digital experience perspective. Global employees around the world now come to their jobs with specific digital expectations and they will not be satisfied if they are forced to e-mail HR departments and then wait several days for a response around their payslip or tax information.
This is a real opportunity for global employers to empower their employees with fast access to data and deliver a consistent payroll data experience across the entire workforce. In many cases the HCM investment has already been made and there is an opportunity to continue the value realization of that investment with an employee experience strategy to support an empowered, engaged, and productive work culture.
4 Skills shortage in payroll
I'm expecting to hear a lot more about this in 2024, because there is a concerning labour and skills shortage across the global payroll industry. We are now facing a shortage of payroll staff and it is challenging for businesses to find staff with payroll skills that are needed today. New skills are also required and there is a growing requirement to train and upskill payroll professionals so that they are more comfortable interacting with integration technologies, understanding business operation strategy and recognizing the role that culture and inclusion now play inside and across global teams.
Manual work and long hours need to stop happening or global organisations will continue to struggle to find suitably qualified global payroll professionals. It is important to look at a team’s skills and create development programs to upskill teams in a way that displays their value in the organization. Organizations need to support global payroll professionals by investing in technology that can help them do their jobs in a smarter, faster and better way.
