National Payroll Week falls on 2 – 6 September 2024 and is a chance to honour the professionals and business processes that ensure everyone gets paid, on time and in compliance with regulations.
However, it is easy to underestimate payroll. This National Payroll Week, celebrate your talented team and check that you are fully making the most of payroll’s potential for unlocking strategic advantages and driving growth.
Here are our 5 reasons to pay attention to payroll in 2024.
1. It is key to creating a great employee experience
It is no secret that employees value being paid accurately and on time; in fact, one in five Brits have changed jobs after being paid late or inaccurately by their employer. Most business leaders understand that holding on to top talent is vital for business success – yet a quarter of UK employees have received a paycheque that was incorrect. A high churn due to something as fundamental as payroll just isn’t good enough! A seamless payroll process fosters a positive employee experience, essential for retention.
Beyond the basics of timely payments, payroll offers an opportunity to show employees you care through financial wellness initiatives. These could include pay on-demand, allowing employees early access to a portion of their wages, to meet unexpected or sudden costs. When employees feel secure about their finances, their job satisfaction and loyalty to the company increase.
2. A strong payroll function removes the barriers to remote working
Post-pandemic, remote working is here to stay. Many businesses are leveraging remote and hybrid options to attract top talent, cut overheads and establish a global presence. However, this is only possible if you have a talented payroll team working behind the scenes, ensuring that the pay of a distributed workforce is compliant with regulations – even when working across multiple jurisdictions – and employees can access their payslip information at work, at home, and abroad.
Cloud-based payroll systems are particularly effective in this regard, providing accessibility and flexibility for both employees and payroll managers. By making payroll accessible in real-time, over the internet, businesses can support remote work more effectively, ensuring that payroll processing is smooth and efficient, no matter where employees are located.
3. When combined with Time & Attendance data, Payroll data is a source of valuable strategic insight
Your payroll team has access to invaluable employee data that can provide insights into various trends within the organisation. For instance, payroll data can reveal patterns in employee absences and overtime when combined with a time and attendance solution. These insights can help inform data-driven decision making, with your payroll team able to provide key recommendations. For example, if attendance data shows a high rate of absenteeism in a particular department, it may indicate issues with management or job satisfaction that need to be addressed. Similarly, if overtime data reveals that certain teams are consistently overworked, it may be time to consider hiring additional staff or redistributing workloads.
Tracking labour costs is another critical aspect of payroll. By analysing your data, businesses can gain a clearer understanding of their labour expenses and identify opportunities for cost savings. This information can be used to make more informed budget decisions and improve overall financial planning.
4. Payroll professionals are on the frontier of legislative change
When law changes, payroll professionals must ensure continued compliance – often at fairly short notice. From tax reforms to changes in employment laws – like the Employment Rights Bill soon to be introduced - staying updated is crucial to avoid penalties and reputational issues. Proactive payroll professionals can get ahead of the curve, introducing measures like improved sick pay or flexible contracts sooner rather than later and helping you stand out as an employer committed to fair practice and innovation.
Payroll can also go above and beyond by educating employees about their rights and benefits. This fosters transparency and trust, contributing to a positive work environment. By prioritising excellent payroll communication, businesses can build a reputation for integrity and fairness.
5. Ensuring data security
In today's digital age, data security is a top priority for businesses. Payroll systems handle sensitive employee information, including National Insurance numbers, bank details, and salary data. Ensuring the security of this information is crucial to protect employees' privacy and prevent data breaches.
A robust payroll system incorporates advanced security measures to safeguard employee data. This includes encryption, secure access controls, and regular security audits. Many payroll professionals are fast becoming data security experts, as employee data breaches hit the highest level in at least five years. Data security is as much of a HR issue as an IT one – and businesses choose to stay with outdated payroll systems or neglect upskilling their staff at their own risk.
National Payroll Week is a timely reminder of the critical role payroll plays in business success. Make sure it has a corresponding level of investment and attention, to fully fulfil its potential as a driver of growth and employee experience. Investing in a strong payroll system and a talented team can set your business apart. Take the time to evaluate your payroll processes and make improvements where needed. Your employees and your bottom line will thank you.
OneAdvanced’s Payroll solution gives you:
- Employee online access – put payslips and essential documents including such as P60s, P45s, and P11Ds at your people’s fingertips; we process over 300,000 payslips each month
- Automated complexity – with our Payroll software, calculations occur automatically as the data is entered
- Full compliance - HMRC recognised payroll software helps you meet your organisation's RTI, pension automatic enrolment and data security requirements
- Pay on demand – allow employees to draw down earned pay, as they need it
- Enhanced security - Offering security protocols such as SSL encryption, user access rights, and GDPR compliance.
& more!
Find out more about our HMRC-recognised Payroll software here.