Guest blog post by FHRD Member, Buddy HR & Payroll Software.
Would you give payroll more importance if you knew that 44% of employees with payroll-related errors, consider leaving their current place of work?
Jonathan Mifsud, a payroll expert, recently gave a presentation on “The Payroll Trinity” at Accountex, a leading Accountancy and Payroll show held in London. In his presentation, Jonathan emphasised the importance of recognising the three key personas involved in payroll processing and their relationships to create a positive payroll experience for everyone involved. The key personas identified by Jonathan are the “Employee,” “Employer,” and “Payroller,” giving scope for payroll to be either in-house or outsourced.
One of the critical insights Jonathan shared during his presentation is that 79% of employees tend to find payroll issues themselves, according to surveys. With 44% of employees considering leaving their current role when paid incorrectly, it is no wonder companies that are plagued with payroll issues face significant challenges to retain staff. Hence, if retention is one of your key people KPIs this year you should consider investing in payroll as a measure to increase retention.
Jonathan suggested improving the communication between all three personas, particularly between the HR and payroll team to the employee. He suggested informing employees of upcoming changes in advance, providing training to help them understand their payslips and leveraging payslip messages and itemised payslips to ensure they are easier to understand.
Jonathan also shared a couple of case studies, including a payroll bureau that increased their payroll volume by 800% in just over two years by implementing key actions that helped strengthen relationships between the three personas involved in payroll processing and leveraging automation and cloud software in their operations. These actions resulted in a more streamlined payroll process and a more positive experience for everyone involved.
In addition to these insights, there are some practical tips that HR professionals can implement to improve their payroll processing and retention strategies. For example, implementing regular payroll audits, improving communication channels between the employees, employer and the payroller, and investing in payroll software that streamlines the payroll processing can all make a significant difference.
Addressing common challenges that HR professionals face can also be helpful. Payroll processing and retention can be challenging for companies of all sizes. By addressing common challenges such as managing payroll taxes, ensuring data security, and meeting regulatory requirements, HR professionals can better understand how to improve their payroll processing and retention strategies.
Sharing case studies of other companies’ experiences with payroll and retention issues can provide inspiration and insights for HR professionals. He also provided the audience with an ebook with 33 actionable things they can do today in order to improve their payroll processes by leveraging the power of The Payroll Trinity.
Recognising the three key personas involved in payroll processing and their relationships is crucial to creating a positive payroll experience for everyone involved. By improving communication, investing in payroll, and implementing practical tips and best practices, HR professionals can better navigate the challenges of payroll processing and retention.
Jonathan closed off his talk by asking the audience how they define payroll. While some limited themselves to payroll processing, it was acknowledged that you need anything from leave data, salary details, tax and statutory reporting for correct payroll. Which all lie with different people; he asked the audience to imagine what would happen if all this was in one central place which could be accessed by everyone.
Joining the three personas, The Payroll Trinity, to operate effectively, he said, would create One Payroll.
Author – Jonathan Mifsud is the co-founder of Buddy an HR & Payroll Software. Over the last two years, he has been working with his team to upgrade the product to be compatible with UK Payroll whilst delivering payroll innovation in Malta. Jonathan has been working in payroll since 2017. Holding a Master’s Degree in Intelligent Computer Systems, he has applied the knowledge gained in tech, within the payroll industry. Helping hundreds of businesses and multiple bureaus to run payroll accurately and more efficiently than ever before. Jonathan has been a regular contributor to various media, having been published in the XU Magazine, the Times of Malta and “The Accountant” (Maltese publication). He has also appeared as a speaker multiple times for the Malta Institute of Accountants and delivered multiple payroll courses.”