A five-point guide for payroll leaders
Changing your payroll priorities
Often, payroll only gets the attention it deserves at times of major upheaval. Unfortunately, that may also be for all the wrong reasons, with unexpected changes leading to more inefficient processes, a greater number of errors and increased pressure on already over-stretched payroll teams. The challenges are also greater for multinationals, with most (74%) still running multiple systems across multiple geographies, not only complicating operations but also increasing costs substantially.
While these challenges won’t go away, there has been a reluctance to review payroll. Less than half of multinationals have done so in the last two years. And just over a quarter (28%) have not formally compared operations against objectives for three years or more.
This reluctance to review payroll may be because the pain of changing is viewed as worse than keeping things as they are.
But most professionals agree that change is necessary to meet today’s challenges and a truly global payroll model would benefit their organisation.
Top changes payroll leaders are looking for from modernisation:
- Integration of data with other business systems
- Access to greater reporting and analytics
- Simplified payroll data methods
- Standardised multi-country payroll
Check how you can unlock the power of payroll.
1: Overspend or save?
Make cost management a strategy.
As payroll makes up so much of company spend any improvements can deliver huge results. Yet as a result of poor data quality and multiple systems, more than 61% of companies spent most of their time dealing with payroll queries and everyday problems.
Seamlessly integrating payroll with other systems into one simpler solution allows you to focus on strategies that drive savings and efficiency first. Automation and digitisation mean you can do more, while cutting payroll processing effort by up to 75%.
2: Guess or know?
Deliver more reliable insights.
Unless you have a unified view of payroll across countries, and access to the right analytics, it is difficult to provide the quick and detailed reporting that the business needs to make strategic decisions. This is especially so in times of crisis.
Take global rather than local views of payroll and you can let everyone know what is really happening. Payroll is no longer just a process. You now have access to all of your workforce data, including employee expenses, leave and absences, to provide detailed analysis and reporting. This provides the reliable insights to inform future strategies — whether that’s different labour costs or evolving compensation and reward strategies for your changing workforce.
3: Standalone or standardise?
Create a new standard for payroll operations.
How many payroll systems does your company currently use? Nearly three-quarters (74%) of companies are still running a patchwork of solutions, accumulated over time, with separate payroll systems running in different countries — each with a local focus. They report a number of problems. Data security is compromised, causing compliance issues that can incur costly fines. Payments are late, data quality poor and service compromised, as payroll staff struggle to keep up with the volumes of queries.
In fact, the larger, more global an organisation the less likely it is to have standardised payroll processes.
By contrast those companies who have transformed payroll and increased standardisation find that it improves payroll efficiency. At one level it makes it easier to answer business queries — quickly and when needed. Longer term, more consistent payroll data, across territories, also provides a more accurate basis for strategic initiatives.
4: Stress or de-stress?
Support different ways of working for your people and payroll teams.
Your payroll teams have faced immense pressures during the pandemic. They need to deal with massive changes ranging from tougher legislative requirements to more remote working that are affecting people across the company. They also have to do so while their own way of working is changing, with more work from home for payroll staff.
A modern payroll allows teams to do more, faster, wherever they are, by simplifying processes and automating tasks. Your team can then focus on developing their skills, using analytics and insights from payroll data to support business decision-making.
5: Status quo or change?
Prioritise changes that make your business more agile.
How can you respond at business speed to urgent changes when running multiple systems, often from several vendors? Such agility depends on modernising your payroll. It will have a positive impact across your business, such as a faster response to regulatory changes as well as the flexibility to meet the demands of employees for new ways of working and benefits.
Find out how a modern payroll can turn challenges into opportunities in today’s rapidly-changing world.
Read the ADP eBook — ‘Challenge or Opportunity?’
Sources
- The Potential of Payroll: Global Payroll Survey, ADP, 2021
- Global Payroll Survey, EY, 2019
- Total Economic Impact™ of ADP Global Payroll Study, Forrester Consulting, 2020
- Deloitte analysis 2017. Labor spending or overspending?
- ADP Research Institute – The Workforce View 2020: Volume Two post-COVID-19
- Payroll Unplugged, ADP, 2019
A five-point guide for payroll leaders
Changing your payroll priorities
Often, payroll only gets the attention it deserves at times of major upheaval. Unfortunately, that may also be for all the wrong reasons, with unexpected changes leading to more inefficient processes, a greater number of errors and increased pressure on already over-stretched payroll teams. The challenges are also greater for multinationals, with most (74%) still running multiple systems across multiple geographies, not only complicating operations but also increasing costs substantially.
While these challenges won’t go away, there has been a reluctance to review payroll. Less than half of multinationals have done so in the last two years. And just over a quarter (28%) have not formally compared operations against objectives for three years or more.
This reluctance to review payroll may be because the pain of changing is viewed as worse than keeping things as they are.
But most professionals agree that change is necessary to meet today’s challenges and a truly global payroll model would benefit their organisation.
Top changes payroll leaders are looking for from modernisation:
- Integration of data with other business systems
- Access to greater reporting and analytics
- Simplified payroll data methods
- Standardised multi-country payroll
Check how you can unlock the power of payroll.
1: Overspend or save?
Make cost management a strategy.
As payroll makes up so much of company spend any improvements can deliver huge results. Yet as a result of poor data quality and multiple systems, more than 61% of companies spent most of their time dealing with payroll queries and everyday problems.
Seamlessly integrating payroll with other systems into one simpler solution allows you to focus on strategies that drive savings and efficiency first. Automation and digitisation mean you can do more, while cutting payroll processing effort by up to 75%.
2: Guess or know?
Deliver more reliable insights.
Unless you have a unified view of payroll across countries, and access to the right analytics, it is difficult to provide the quick and detailed reporting that the business needs to make strategic decisions. This is especially so in times of crisis.
Take global rather than local views of payroll and you can let everyone know what is really happening. Payroll is no longer just a process. You now have access to all of your workforce data, including employee expenses, leave and absences, to provide detailed analysis and reporting. This provides the reliable insights to inform future strategies — whether that’s different labour costs or evolving compensation and reward strategies for your changing workforce.
3: Standalone or standardise?
Create a new standard for payroll operations.
How many payroll systems does your company currently use? Nearly three-quarters (74%) of companies are still running a patchwork of solutions, accumulated over time, with separate payroll systems running in different countries — each with a local focus. They report a number of problems. Data security is compromised, causing compliance issues that can incur costly fines. Payments are late, data quality poor and service compromised, as payroll staff struggle to keep up with the volumes of queries.
In fact, the larger, more global an organisation the less likely it is to have standardised payroll processes.
By contrast those companies who have transformed payroll and increased standardisation find that it improves payroll efficiency. At one level it makes it easier to answer business queries — quickly and when needed. Longer term, more consistent payroll data, across territories, also provides a more accurate basis for strategic initiatives.
4: Stress or de-stress?
Support different ways of working for your people and payroll teams.
Your payroll teams have faced immense pressures during the pandemic. They need to deal with massive changes ranging from tougher legislative requirements to more remote working that are affecting people across the company. They also have to do so while their own way of working is changing, with more work from home for payroll staff.
A modern payroll allows teams to do more, faster, wherever they are, by simplifying processes and automating tasks. Your team can then focus on developing their skills, using analytics and insights from payroll data to support business decision-making.
5: Status quo or change?
Prioritise changes that make your business more agile.
How can you respond at business speed to urgent changes when running multiple systems, often from several vendors? Such agility depends on modernising your payroll. It will have a positive impact across your business, such as a faster response to regulatory changes as well as the flexibility to meet the demands of employees for new ways of working and benefits.
Find out how a modern payroll can turn challenges into opportunities in today’s rapidly-changing world.
Read the ADP eBook — ‘Challenge or Opportunity?’
Sources
- The Potential of Payroll: Global Payroll Survey, ADP, 2021
- Global Payroll Survey, EY, 2019
- Total Economic Impact™ of ADP Global Payroll Study, Forrester Consulting, 2020
- Deloitte analysis 2017. Labor spending or overspending?
- ADP Research Institute – The Workforce View 2020: Volume Two post-COVID-19
- Payroll Unplugged, ADP, 2019