Rethinking Contemporary Payroll Transformations

Rethinking Contemporary Payroll Transformations
06 Mar 2023

Digital transformation can and should be a catalyst for change within any organization; simplifying payroll processes and improving overall efficiency. It can enhance the internal communication of data-driven solutions, optimizing communication, collaboration and productivity and bringing invaluable agility at a time when businesses need to be proactive to survive.  

However, radical, valuable change within an organization can only happen when a strategic direction is identified and the key players have a voice. Contemporary payroll transformation is about more than deploying new technology. Its true value is the opportunity it offers to turn a new page by optimizing processes, harnessing the power of payroll data, rethinking your operating model and leveraging external expertise. 

Payroll innovation plays a huge part in future business success, meaning that payroll should be part of any conversation about an organization’s strategic direction. Technology-enabled managed global payroll services open the door to a forward-looking global payroll operation that can be a powerful asset for future growth. However, the crucial role of payroll has traditionally gone unappreciated organization-wide – from the C-suite down - and therefore its contribution has often been minimised or overlooked.  

So in lieu of this, what could we all be doing better? 

Communication, communication, communication 

Payroll, both as an industry and as an internal department, needs to learn to sing its own praises. A huge part of the current perception of payroll as a reactive force within an organization comes from the fact that it fails to broadcast its wins or shine a light on its resources. If payroll is only involved in the dialogue when something has gone wrong, it will continue to be left out of the bigger conversation. 

Payroll is the custodian of valuable people data that can provide real-time workforce insights. Beyond leveraging this knowledge to improve internal processes, an organization can use them to resource plan, optimize strategies for expansion and track the changing needs of employees. We must help executive leaders to understand that this great asset will be diluted if payroll data is not accessible within other HR systems. And its loss will be to everyone’s detriment.  

Alight Solutions’ Global payroll transformation impact report 2023 revealed that 45% of organizations are not confident their current payroll operations could support the future strategic direction of the business. While 28% acknowledged there is little or no payroll standardization in their organization. A more democratic payroll transformation process where payroll has a seat at the table and the confidence to speak up would be truly transformative. 

The Alight report also revealed a perception that at 54% of organizations, executive leadership was not invested in elevating payroll. Once the value of payroll is known, the C-suite can help the drive for change by prioritizing, investing in and supporting it and by sharing payroll’s direct contribution to employee productivity and net profits with the wider organization. In turn, payroll must gain the confidence to step into an advisory role and become a vocal champion for change. 

Source: Alight/GPMI Global payroll transformation impact report 2023

The Great Rethink 

We are moving into a future where employee experience will increasingly be front and centre in the battle to attract talent. Features such as on-demand pay, self-service and online payslips are likely to be the norm for an increasingly tech-savvy workforce. Recruiting and retaining talent and trying to maintain engagement without the adoption of automation technologies will be a risky strategy.  

When we don’t learn from our mistakes, we are doomed to repeat them. Effective communication is the way to break the cycle and rethink payroll transformation to make it work for us all. In a competitive labour market and a volatile business climate, agility and efficiency are critical tools for success. Allowing payroll to realize its full potential ensures that contemporary payroll transformations will be a conduit for meaningful change.  

 

Logo for Alight Solutions, simple black lowercase text on a white background reading Alight Powering Human Capital

 

 

 

 

 

Join the GPA and Alight Solutions for our webinar Rethinking Payroll Transformation in 2023 and Beyond on March 28th at 3.00pm BST / 8.00am CST 

Presenters Amber Hassid - Alight’s Vice-President, Global Payroll Solutions - and Gemma George - Alight’s Senior Solutions Architect - will be taking a deeper dive into this timely topic with payroll industry leaders and experts. 

Register today!

Digital transformation can and should be a catalyst for change within any organization; simplifying payroll processes and improving overall efficiency. It can enhance the internal communication of data-driven solutions, optimizing communication, collaboration and productivity and bringing invaluable agility at a time when businesses need to be proactive to survive.  

However, radical, valuable change within an organization can only happen when a strategic direction is identified and the key players have a voice. Contemporary payroll transformation is about more than deploying new technology. Its true value is the opportunity it offers to turn a new page by optimizing processes, harnessing the power of payroll data, rethinking your operating model and leveraging external expertise. 

Payroll innovation plays a huge part in future business success, meaning that payroll should be part of any conversation about an organization’s strategic direction. Technology-enabled managed global payroll services open the door to a forward-looking global payroll operation that can be a powerful asset for future growth. However, the crucial role of payroll has traditionally gone unappreciated organization-wide – from the C-suite down - and therefore its contribution has often been minimised or overlooked.  

So in lieu of this, what could we all be doing better? 

Communication, communication, communication 

Payroll, both as an industry and as an internal department, needs to learn to sing its own praises. A huge part of the current perception of payroll as a reactive force within an organization comes from the fact that it fails to broadcast its wins or shine a light on its resources. If payroll is only involved in the dialogue when something has gone wrong, it will continue to be left out of the bigger conversation. 

Payroll is the custodian of valuable people data that can provide real-time workforce insights. Beyond leveraging this knowledge to improve internal processes, an organization can use them to resource plan, optimize strategies for expansion and track the changing needs of employees. We must help executive leaders to understand that this great asset will be diluted if payroll data is not accessible within other HR systems. And its loss will be to everyone’s detriment.  

Alight Solutions’ Global payroll transformation impact report 2023 revealed that 45% of organizations are not confident their current payroll operations could support the future strategic direction of the business. While 28% acknowledged there is little or no payroll standardization in their organization. A more democratic payroll transformation process where payroll has a seat at the table and the confidence to speak up would be truly transformative. 

The Alight report also revealed a perception that at 54% of organizations, executive leadership was not invested in elevating payroll. Once the value of payroll is known, the C-suite can help the drive for change by prioritizing, investing in and supporting it and by sharing payroll’s direct contribution to employee productivity and net profits with the wider organization. In turn, payroll must gain the confidence to step into an advisory role and become a vocal champion for change. 

Source: Alight/GPMI Global payroll transformation impact report 2023

The Great Rethink 

We are moving into a future where employee experience will increasingly be front and centre in the battle to attract talent. Features such as on-demand pay, self-service and online payslips are likely to be the norm for an increasingly tech-savvy workforce. Recruiting and retaining talent and trying to maintain engagement without the adoption of automation technologies will be a risky strategy.  

When we don’t learn from our mistakes, we are doomed to repeat them. Effective communication is the way to break the cycle and rethink payroll transformation to make it work for us all. In a competitive labour market and a volatile business climate, agility and efficiency are critical tools for success. Allowing payroll to realize its full potential ensures that contemporary payroll transformations will be a conduit for meaningful change.  

 

Logo for Alight Solutions, simple black lowercase text on a white background reading Alight Powering Human Capital

 

 

 

 

 

Join the GPA and Alight Solutions for our webinar Rethinking Payroll Transformation in 2023 and Beyond on March 28th at 3.00pm BST / 8.00am CST 

Presenters Amber Hassid - Alight’s Vice-President, Global Payroll Solutions - and Gemma George - Alight’s Senior Solutions Architect - will be taking a deeper dive into this timely topic with payroll industry leaders and experts. 

Register today!

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