Top tips for embracing payroll transformation

Payroll impacts every individual in an organisation, from new starters right through to movers and leavers, and at all levels of seniority. When it comes to changing payroll systems, taking a holistic approach is essential.

It’s important to consider the impact of a new system not only on users, but also on the administrative side of the business. A clear business plan is a key first step as it lays out clear goals, strategies and considerations to be made, helping to outline objectives, pre-empt issues and streamline project delivery.

With the ongoing digitisation of the workplace, there is a growing requirement for employees to interact with services, such as payroll, online. Digital payroll services entail many benefits, such as enhanced data security, greater accuracy through mitigating human error, and better organisational efficiency.

As awareness and appreciation of the benefits of digitisation grows, employee self-service (ESS) and manager self-service (MSS) systems are becoming increasingly common. Responding to people’s evolving expectations will help organisations to keep up to date with industry developments and maintain their competitive advantage.

Certain organisations, such as public sector councils, are complex with many layers of teams, departments and employees across which the payroll system must be aligned. The intricacies of aligning a payroll system to everyone highlights why digital transformation is important, and technology offers endless possibilities to enhance performance and streamline operations.

AI-driven automation processes are on the rise in the payroll sector and payroll professionals must embrace it rather than shy away from it, to make use of all the benefits on offer. AI-driven systems use information about people’s hours, job description and role to work out sick pay and annual leave, instead of being done manually. This will speed up processes and streamline activity by freeing up skilled HR and payroll professionals to carry out more nuanced work, leaving mundane admin activities to technology.

Whilst people may be open to engaging with online payroll systems, change is still personal, and some people may be apprehensive about the change. To tackle this, it’s essential to communicate the benefits of the new system and explain why it’s being implemented to help people’s understanding. Mistrust often stems from the fear of the unknown, so leaders must create a robust communications and training strategy which enables employees to raise their concerns, speak to their managers and feel heard throughout the transition.

In a sector as dynamic as payroll, where external factors are a constant source of influence, change is inevitable. By implementing some simple steps to embrace change, the payroll sector can benefit from opportunities for continual development, improving systems and processes for years to come.