Tradition
While it is generally acknowledged, on the surface at least, that global payroll delivery is an essential business critical function, this has not appeared to elevate the profile and visibility of this business function very much. It is rare in the modern digital age that a department which is so crucial to the overall running of a multinational company should spend so much time out of the spotlight, seemingly operating in the hidden shadows. In this article, we will take a look at some of the reasons why payroll processing remains a bit hidden and misunderstood.
Background function
Payroll processing is one of those key workflows that appears to happen quietly, yet effectively in the background. It also appears to be populated by company employees who are happy to operate with the minimum of fuss. These factors combine to create a department which simply gets on with the business of paying company employees, accurately and on time, every month without fail.
Everyone will agree that payday is a happy day for employees at all companies, yet very few seem to understand the complexity and level of work involved to ensure accurate and timely payments to employees. Most people assume that someone in human resources has handled it. The inner workings of the global payroll department tend not to be questioned or examined in any great detail. It would be a mistake however, to believe that payroll simply happens with the touch of a few buttons. The real truth is each employee payment is unique and the process is a very detailed and often complex process, one where there is little or no room for error. The fact that errors are usually quite rare is testament to the diligence and dedication of the payroll professionals who work to extremely high standards.
In most organizations across the world, payroll professionals perform the work seamlessly in the background and tend not to draw a lot of attention to themselves or their business operations. The process they are involved in is rarely questioned until something goes wrong. It important to note in most cases when something does go wrong, it can usually be traced back to another department who delivered incorrect information. If nothing goes wrong, it is assumed that it will simply get done and there is little else to discuss. These are background operators working under the radar, service providers simply focusing on their jobs.
No flair technology
Another reason the global payroll tends to operate under the radar is the lack of major investment in modern technology to assist global payroll delivery. The latest tech and innovative tools never seem to extend to the payroll processing department. It is not that payroll professionals are not interested in them (the reality is that they are very much interested in anything that can help them do their jobs better), it is more a case that because the function seems to be working well, it is harder to sell the business case for investment as the department has been consistently delivering company payroll, making it harder to obtain support and funding. Sometimes, other business functions do a better job at shouting loudest when it comes to creating a business case for investment. This has resulted in global payroll being overlooked when it comes to innovative technology that can strengthen and improve the processing of payroll.
This is quite a shame as there is significant room for improvement when it comes to innovative technology. Global payroll teams everywhere could really benefit from cloud based remote access tools to help them meet deliverables, especially during business continuity. They also need technology to help them standardize data and processes as this will speed up the delivery of payroll, reduce risk and complexity and improve overall efficiency. Any technology that helps provide visibility and control will be welcomed by payroll professionals as this is a key issue that they face on a daily basis. Automation is another area of technology advancement that would make a genuine difference to the manner in which they processed global payroll. It would free up their time, allowing them to escape from manual processing and feel that they are working in a modern, innovative department that has kept pace with information technology trends which many other areas of the business in which they work in have benefited from in recent years. Attitudes are changing, and payroll teams are now looking at ways in which technology can help them, especially now where technology is needed to help respond to COVID-19.
Out of the spotlight
Processing global payroll is a very deadline focused job- once these deadlines are hit, the next ones follow very quickly. As soon as monthly payroll is processed, preparation begins almost immediately for the next month's payroll and on it goes. Payroll professionals are also subject to a lot of additional demands outside of core duties. They're involved in analysis and consolidated reporting needed for strategic business decisions.
Schedules are tight, their time is limited, and you tend not to see them in ad hoc projects or non- essential business meetings. Payroll professionals tend to operate out of the spotlight and in their own focused environment, but some are now starting to use social media to provide support and educational content to help their peers and fellow professionals.
Payroll does not make the list of things to get covered when an internal communications team at a company is thinking of content ideas to keep company employees up to date, aware and engaged. Payroll professionals are rarely covered in internal newsletters or other company communications. Placing the payroll department in front of the wider company audience has just not been a priority and this contributes to the sense of it being a hidden department.
Hard to promote
Global payroll is one of the most complicated, time-intensive processes in any company. Payroll professionals find it very rewarding and fulfilling but they would never call it easy. Payroll professional get the job done on time each pay period. The job is not the easiest for others to promote and talk about, another reason why it remains hidden. Calculating employee hours, annual leave, deductions, benefits, and taxes may be a mission-critical function but does not make for compelling reading and many find that it is an area they do not wish to learn about.
A relatively small team is responsible for a number of connected tasks, many of which require manual checking and proofing. As a business scales and grows, these tasks become more complex and time consuming.
Little is written about it, less is fully understood and the inner workings of a payroll department are only truly known by those who work there on a daily basis. Yes, those who do work there enjoy it and build long-term careers, staff turnover is low in comparison and rising above the challenges to get everything done seems to drive payroll professionals.
Payslip
At Payslip, we have learned a lot about the essential hidden role payroll professionals play to support the organization goals as well as the employees. We respect very much what they do each and every day, and our role is to support and provide tools to help them do their jobs better. We understand all of the challenges and have developed technology to assist- this is automation and integration technology. It automates processes and gives them back valuable time. It standardizes data and processes between payroll teams in different locations. It schedules, customizes, and consolidates global payroll reporting so everyone can understand the cost of payroll both now and in the future. It enables international employers to manage their payroll processes, people, data, and reporting on one central platform. Payroll professionals need tools to support and enhance global payroll operations-tools which help uncover the hidden value payroll plays each and every day to ensure employees are paid on time and data driven insight is available to support strategic decisions.