5 things to consider when assessing your payroll maturity
How has your payroll operation performed over the last few months? Has it remained a strong and resilient, or has it crumbled under the pressures of the pandemic? Whatever your answer, the origin is often the maturity of your payroll operation.
As we emerge from Covid-19, one of the most economic and socially disrupting periods of our lifetime, it's critical for businesses to scrutinise and challenge their payroll operations. This is where the degree of your payroll maturity matters: it impacts your whole organisation, from operational efficiency and exposure to risk, to employee experience.
What is payroll maturity?
Payroll maturity might be new to you, or it might keep you awake at night. Simply put, every organisation’s payroll department follows a similar set of processes, technology and performance, which can be benchmarked on a scale from immature to strategic.
Where your payroll operations sits on the scale is a big deal because the more mature your payroll operations are, the more efficient and productive your payroll will be. On the other end of the scale, payroll that falls into the immature category could lead to inefficiencies and waste across multiple departments.
Learn more about payroll maturity and how it contributes to payroll efficiency in this practical guide.
What does ‘mature’ payroll look like?
Consider these factors when assessing the maturity of your payroll operation.
The tech that you use is a good starting point to measure maturity. Do you rely on outdated legacy tech, or are you using the latest payroll solution? Is your system cloud-based (SaaS) or are you working from on-premise programmes? Are you using multiple disparate systems or an intelligent integrated solution?
Your payroll processes are equally as important when assessing maturity. Do you have a set of recorded processes that can be easily followed and replicated, or are you relying on the knowledge of a small team of experts? The Covid-19 pandemic has highlighted that many businesses depend on one or two people to process payroll for the entire workforce, how sustainable are these processes in the long run?
3. Value (ROI)
Is your payroll purely a means to an end, or does it offer your organisation strategic value? The most innovative organisations are leveraging data from Payroll and HR to inform strategic decisions and plan more effectively. Does your payroll contribute to employee satisfaction, or do paper payslips, inaccurate payments and outdated tech lead to a poor employee experience?
Every business should be thinking about future growth and how their payroll operations fit within that growth model. Will your payroll be able to cope with development, acquisition or even global expansion? No idea should be overlooked when it comes to business growth. Make sure your payroll is flexible enough to grow with your organisation, or partner with a provider who can easily scale up with you.
Do you know how accurate your payroll is and are you able to navigate ever-changing rules, legislation and complex calculations? Compliance is one area that you can't afford to get wrong. More mature payroll operations use technology such as automation and SaaS to save time, avoid human error and ensure the latest software is available for a global workforce. In addition, they’ll have access to expertise or completely outsource compliance to an ISO 27001 / ISAW 3402 accredited provider, for peace of mind.
Free Payroll Maturity calculator
The five topics mentioned contribute to the overall maturity of your organisation’s payroll, but it’s not an exhaustive list. Take 10 minutes of your time to get an impartial overview of your payroll’s maturity with our free payroll maturity calculator.