I’ve worked with a great variety of businesses at various stages of life cycle in my experience over the last 20+ years, and no matter who or where they are, one thing rings true: a robust payroll solution is a mission-critical function of any organisation. Whether your organisation’s payroll function reports into HR, Finance or a shared services function, there comes a time when your current payroll functions may no longer suit your needs.
Here are my top 5 reasons to reassess your payroll:
1) Company growth
South-East Asia is home to some of the world’s fastest growing economies. Payroll is a mature function within most organisations, but that doesn’t mean it stops presenting challenges. Increasing employee numbers and expansion into other countries are two key growth factors that will impact heavily on payroll – and the more complex the changes, the less likely that paper-based payroll systems or spreadsheet approaches will keep up with your company’s growth. Successful organisations utilise solutions that automate and accelerate processing, reduce risk and simplify payroll management.
2) Changing Workforce
More technology-savvy people are now entering the workforce. They have grown up using graphic technology that’s user-friendly and collaborative, and they’re demanding common payroll transactions be intuitive and self-service. In today’s dynamic and hyper-competitive business landscape, it’s a key advantage in the war for talent, particularly in a market like Singapore with low unemployment.
If your organisation is still using a manual system for payroll, you’re extremely vulnerable to risk. Many businesses have experienced a financially devastating data loss. Storing your data in the cloud moves data security to externally managed servers with a series of data encryption and authentication measures implemented to prevent unauthorised data access. Today’s cloud payroll solutions offer incredibly high standards when it comes to security, managed by experts for whom data security is their core business. It is in their best interests to ensure that your data security and privacy is absolutely paramount.
4) Changing Technology
The world of work is changing, and technology is leading the way. Automation is inevitable; artificial intelligence, mixed reality, robotics and sensory and vocal user interfaces have reached a tipping point. McKinsey predicts that 30% of tasks which are carried out by humans today will be automated by 2030. The benefits this will bring to productivity has company leaders rubbing their hands, yet most are not prepared. Only 17% of global executives report they are ready to manage a workforce with people, robots and AI working side-by-side, according to Deloitte’s Global Human Capital Trends survey. by 2030, all these technologies will be well and truly integrated into the workplace, so if businesses don’t start making steps now to change the way their organisations are designed and managed – including payroll – they will find themselves struggling to stay competitive.
5) Changing role of HR
A recent Deloitte report revealed that the payroll function reports into HR in 48% of organisations, up from 40% in 2011. This figure is even greater in organisations with 10,000 to 100,000 employees, at 58%. But the role of HR is becoming increasingly strategic. Just as the automotive industry saw a reskilling and new jobs created through the automation of low-skill functions, so too will HR. Automating aspects of payroll will free HR staff up to more strategic tasks such as analysing data, identifying patterns and overseeing the direction of where and how people will be deployed, giving HR a seat at the table with the C-suite.
We’re getting close to end of year compliance reports, so it’s the ideal time to reassess your organisation’s payroll. While the reliability of your payroll technology must be rock solid, it must also be flexible and tightly integrated with core HR, finance and business systems to maximise business value. I’ve seen cloud payroll solutions transform global workplaces. Organisations simply cannot operate with inefficient and outdated payroll processes.