Strategic Payroll as a Business Enabler
In this new research, the key findings highlight why transforming payroll functions from a tactical operational function to a strategic business enabler provides a number of motivations and benefits. The research uncovers that payroll systems serve a broader and more strategic purpose than just paying employees and maintaining data. This paper aims to help CFOs, HR Leaders, and Payroll Executives understand the value of payroll data.
What is Strategic Payroll?
Strategic payroll enables organisations to optimise their business. Payroll data is the most valuable yet underutilised data source in most businesses. According to our research, only 43% of surveyed business leaders believe their payroll is only used as a database and for record keeping of employee details. This is mainly for compliance purposes.
Payroll data is detailed and can be a barometer of workforce trends. Aligning business goals with payroll data helps manage costs, ensure compliance, and deliver a better employee experience.
Key Insights of the Strategic Payroll
%
of organisations use payroll primarily as an employee database to pay employees and ensure compliance.
%
of organisations rated their ability to use payroll for better business outcomes as excellent. Most organisations use their payroll solution for paying employees.
%
of organisations intend to use payroll strategically to achieve better business outcomes and results.
%
of business leaders believe their payroll system extends beyond paying people.
What our customer payroll professionals are saying
Any organisation without a defined payroll strategy which mitigates the risks involved in paying employees and looks to add value to the employer by the use of technology, data and insights, is potentially missing a competitive advantage in their industry.
Payroll forms 58% of our overall business costs, so we needed a product that was going to be seamless and adapt to our growing and changing business needs. Access Definitiv has been able to offer that to us as well as provide our business with a solution that not only saves us time but also provides us with an intuitive and innovative solution.”
Single source of data is extremely valuable as we have access to data in real-time. A single unified platform means all managers have access to their staff information in one place.
What are the business benefits of strategic payroll?
Workforce Management Visibility
Payroll systems can provide insights to improve operations and workforce performance. We found that only over a third of organisations (36%) have payroll systems that provide complete visibility of their workforce, operations, and data.
Making informed decisions at the right
time
Ineffective decision making results in financial losses through missed opportunities and inefficient resource allocation. Payroll system data offers so much more than a simple employee information repository. The data can influence workforce planning decisions.
Enhancing Employee Experience
To create a better employee experience, our survey focused on six areas where payroll can positively impact employee experience. Organisations using payroll as a strategic enabler were two to three times more likely to maintain high employee satisfaction levels.
Managing Compliance and Risk
Keeping payroll systems up-to date and compliant is essential for maintaining business continuity. However, the data shows that many organisations do not fully use them for this purpose. We explored some further areas more deeply
Combining Payroll, HR, and business data
Bringing payroll data and HR and business data together in a single source is the ultimate goal for insights and analysis. Working in silos not only means that data is much more likely to become misaligned or incorrect – leading to errors and open to potential compliance breaches – but also that there's no single source of truth from which to draw detailed workforce insights. When data is not unified, analysis becomes difficult and time-consuming.
- Self-service delivers data
Using an app that allows employees to engage autonomously, you can calculate payroll accurately, ensure compliance, and collect payroll data in real-time. - All-in-one solution for holistic data
With the advancement of technology, businesses have collected data that enables them to gain a holistic understanding of their workforce, costs, and employee engagement.
Download Report
Research Report - Strategic Payroll as a Business Enabler
Learn about the benefits to your organisation of using your payroll
as a strategic enabler by downloading the new research paper today.
Strategic Payroll FAQs
What is strategic payroll?
Strategic payroll is more than paying employees; it maximises efficiency, compliance, and cost effectiveness. A strategic payroll approach aligns payroll data with business goals and outcomes. Strategic payroll management encompasses data analysis, forecasting future workforce needs, and refining processes to support business objectives. This includes streamlining payroll processing for data accuracy and compliance, leveraging technology to improve efficiency and developing a single data source.
What are the benefits of strategic payroll?
Strategic payroll has many benefits. It helps organisations save time and resources by automating routine tasks and delivering data for informed decision-making. The rich payroll data delivers valuable insights into labour costs, workforce trends, and employee performance and engagement. Understanding the concept of strategic payroll is to optimise their operations and drive business success in today's competitive landscape. Proactively using payroll data can help businesses improve their bottom line and performance.