Payroll & Reward

There’s usually an element of trepidation when we relinquish control of something for the first time, even if we know the benefits outweigh any potential risks. We feel it professionally, as well as in our daily lives.

Over the past year, HR too has had to deal with our modern version of the Big Bang. We all adopted a ‘new normal’, to use a trendy term. Hopefully 2021 will be better. Thanks to the vaccine - fingers crossed - we shall soon be getting back to our social lives and be able to meet our colleagues and customers in person again more often. The after-effects of the coronavirus will continue affecting HR developments in the year to come, however. We hereby present the most important insights and trends for the new year.

During 2020 we’ve seen trust in employers tumble as organisations have struggled to get to grips with the consequences of the global pandemic.  

Keeping payroll in-house can mean your processes end up out of control. Whilst informed HR and finance leaders know the benefits of outsourcing payroll, others remain cautious. This is understandable; looking after your people is crucial now more than ever as we move towards the flexi work revolution and remote ways of working.

In this interview we spoke to Samantha Mann, Payroll Training Consultant for Armstrong Watson and former Chartered Institute of Payroll Professionals (CIPP) Senior Policy & Research Technical Lead. Samantha is a regular panelist of our Payroll Question Time webinar sessions– where a panel of experts gather together every month to discuss the latest legislation and policy news in payroll and HR, as well as answering the audience's burning questions. 

The government has announced the launch of policies and measures to protect jobs where businesses are facing lower demand over the winter months due to the Covid-19 pandemic.

It’s estimated that the pace of digital change within businesses has been accelerated by about six years as a result of the Covid-19 pandemic. Where barriers to digital transformation previously existed – be that a reluctance to abandon legacy systems or a lack of support at board level – the necessity to react to the challenges of lockdown have broken these down. 

Hiring new recruits is a costly business. Just how much depends on the role, but according to Glassdoor the average cost per hire is £3,000.

As a leader in payroll and/or finance, you know that payroll is subject to HMRC rules that are complex and changeable. If your payroll system has gaps or vulnerabilities or is not as transparent as it should be, the penalties are high - in terms of cost, stress and reputation.

Many businesses remain unaware of the benefits of outsourcing payroll. Finance and payroll managers often believe that an in-house team, or one person doing everything, cuts costs and retains control. In reality, it’s likely to end up costing more, slow digital transformation and impact business continuity.

The role of the modern finance leader is much more than just assessing financial performance and monitoring cashflow. Nowadays, a good financial leader takes stock of the whole organisation to make sure every aspect is aligned to business goals.

Payroll fraud is often overlooked, but it costs UK businesses £12 billion a year, alongside familiar frauds like insurance, tax and identity theft.