Ever wondered what it really takes to run a world-class payroll function? In this episode of the HR on the Offensive podcast, host Chris Howard, LACEr Julie Choudhury and special guest Melanie Pizzey, Founder of the Global Payroll Alliance (GPA), dive into the evolving landscape of payroll and the critical importance of getting the basics right.
Our recent whitepaper, “Optimal payroll starts with the foundations”, outlines the seven key pillars for building the foundations of a world-class payroll function:
- Operating model
- Technology
- Skills
- Data and reporting
- Process
- Adaptability and scalability
- Training and mindset.
These pillars form the backbone of any Payroll function. They are the essential elements that ensure payroll teams are not just operationally sound but strategically valuable.
An eighth pillar?
Mel emphasised that in a world of ever-shifting legislation, especially across global markets, compliance should also be considered a pillar as it is a constant concern for payroll teams. She also highlighted the growing interest in AI, noting a shift from nervousness to cautious optimism among payroll professionals. While AI promises efficiency gains, the consensus was clear: without strong payroll foundations, AI adoption is premature.
How can we fill the skill gaps in payroll?
85% of organisations believe more investment is needed to upskill payroll teams. Mel agrees that while leaders are eager to develop their teams, time constraints and lack of awareness about payroll as a career path remain barriers.
What is a key challenge facing Payroll teams?
There is a need for better cross-departmental collaboration, as 78% of organisations cite poor coordination as a key issue. Payroll can’t operate in isolation. For it to build strong foundations, support broader business goals and drive business success, it must be recognised and integrated into every corner of the organisation.
