Championing Your Payroll Project: How to Get Buy-in Across the Organization
Learn how a cloud-based payroll system meets the different needs of your key stakeholders to help you get buy-in across your organization.
Various stakeholders across an organization play a role in determining the strategic approach to technology investment.
Getting Buy-in Across the Organization
A Cloud-based payroll system will meet the needs of the Chief Financial Officer (CFO), the Chief Information Officer (CIO), the Chief Product Officer (CPO), and the Chief Operating Officer (COO) in different ways, impacting their motivation and incentive to make the change. A solution like SAP SuccessFactors Employee Central Payroll has benefits for each, as follows:
CFO: Benefits of Cloud-Based Payroll
1. Cost savings: A company can save money on hardware, software, maintenance, and IT support costs, as a Cloud system is hosted by the provider and accessed via the internet.
2. Efficiency: Many tasks can be automated, such as calculating taxes and deductions, generating pay stubs and reports, and handling employee benefits, which can save time and reduce errors.
3. Scalability: A Cloud payroll system can easily accommodate growth and changes in the company’s workforce, as the provider can quickly scale the system up or down as needed.
4. Security: High levels of security and compliance are available, as the Cloud provider is likely to employ more resources and expert knowledge toward the implementation of security measures to ensure compliance with regulations.
5. Accessibility: Being able to access a system from anywhere via an internet connection makes it easier for remote workers and managers to view and manage payroll information.
CIO: Benefits of Cloud-Based Payroll
The organization needs to have the most current and up-to-date systems, which need to be able to adapt and scale as the company changes. The system architecture must also complement other systems and processes. Over the long term, it needs to be low-maintenance and reliable.
1. Reduced IT burden: The IT department’s workload is reduced by eliminating the need to manage hardware, software, and maintenance, as these responsibilities are handled by the Cloud provider.
2. Better disaster recovery: A Cloud payroll system can offer improved disaster recovery capabilities, as the provider can have multiple data centers and backup systems in place to ensure data availability in case of a disaster.
3. Improved data security: Better data security is on offer, as the Cloud provider can implement strong security measures, such as encryption, firewalls, and intrusion detection and prevention systems, to protect sensitive data.
4. Enhanced collaboration: With both the HR and IT departments having access to and sharing data in real time, collaboration can be improved, leading to better decision-making and faster issue resolution.
5. Increased flexibility: More flexibility can be provided to the IT department, as the Cloud provider can easily scale the system up or down as needed, without requiring additional hardware or software.
CPO: Benefits of Cloud-Based Payroll
The company needs to ensure efficient HR processes, with reporting and data assurance. The quality of the service provided to the business is crucial.
1. Employee self-service: Employees can have self-service access to their pay stubs, tax forms, and other relevant information, thereby reducing the HR department’s workload and increasing employee satisfaction.
2. Compliance: A Cloud payroll system can help ensure compliance with labor laws, tax regulations, and other legal requirements, which is critical for the CPO to maintain a compliant workforce.
3. Efficiency: Many time-consuming tasks can be automated, such as data entry, calculations, and reporting, freeing up time for the HR department to focus on more strategic initiatives.
4. Analytics: The CPO can be provided with data analytics and reporting capabilities, allowing them to analyze workforce trends, track key metrics, and make data-driven decisions.
COO: Benefits of Cloud-Based Payroll
Managers need insight into their respective departmental costs, ensuring employees’ pay is motivational and trouble-free. Employees need assurance of systems that deliver the latest methods of interaction and access.
1. Better decision-making: A Cloud payroll system can provide the company with real-time access to payroll data, allowing for better decision-making related to budgeting, staffing, and workforce management.
2. Mobile access: A Cloud payroll system can provide employees with mobile access to their payroll data, allowing them to access their information on the go from any device, thereby increasing flexibility and convenience.
3. Reporting and analytics: Managers are provided with reporting and analytics capabilities, allowing them to analyze payroll data and make data-driven decisions related to staffing, budgeting, and other workforce-management initiatives.
4. Transparency: Employees benefit from transparent and real-time access to their payroll data, allowing them to review their pay history, track deductions, and ensure accuracy.
5. Easy communication: Managers obtain an easy way to communicate with employees regarding their payroll data, including pay changes, deductions, and other relevant information.
Time Tracking and Payroll—A Symbiotic Relationship
Time management is critically linked to payroll, as payroll calculations are directly tied to the amount of time an employee works. Though the relationship of being paid according to the amount of time worked is simple, the actual calculation can be more complex.
In larger, multinational organizations, it’s not uncommon for businesses to have different systems for every country they work in. Organizations in sectors such as logistics, retail, and manufacturing may have to deal with a huge range of non-standard hours, and their systems must be robust enough to account for that variance.
Even in organizations with the vast majority of employees working standard full-time hours, there are still:
Leave/PTO—both within and outside of annual allowances.
Sickness—including paid and unpaid leave.
State- and country-based variations in laws governing working hours, holiday pay, sick leave, and other pay factors.
Getting these calculations right is obviously important. Employees who aren’t appropriately and promptly compensated for their work are unlikely to be happy employees. Conversely, they may not notice or admit to noticing when pay is incorrectly calculated in their favor. Pay miscalculation at scale can be a significant source of lost capital—in some cases, organizations could be paying millions a week for work they’re technically not getting.
By accurately tracking employee time, organizations can ensure that their payroll calculations are correct, payments are made on time, and employees are paid accurately and fairly. SAP SuccessFactors Employee Central automatically integrates its time-management functionality with payroll, allowing for efficient time and attendance management. SAP SuccessFactors Time Tracking is a comprehensive solution that can help manage the time and attendance needs of all types of employees, while controlling labor costs and improving workforce productivity.
Key features include:
An intuitive and personalized user experience across multiple devices.
Integration with external clock terminals and a digital punch clock on web or mobile.
Real-time evaluation of entries based on an employee’s profile.
Configuration options to meet business needs, collective agreements, and local regulations.
One platform for all your time and payroll needs.
Effective People and Your Cloud Payroll Solution
Cloud HR and payroll software providers like SAP SuccessFactors have revolutionized people processes. Although the system is standardized and can be rolled out on a global scale, the Cloud is ever-evolving. This means that organizations need to embrace continuous improvement alongside efficiency and innovation. Often, a one-size-fits-all approach does not work.
With 20 years’ industry experience, and having partnered with SAP SuccessFactors since 2005, Effective People has market-leading expertise in helping clients understand the business impact of HR and payroll, so that they can focus on driving long-term, sustainable transformation. Our clients are typically category leaders in their industry, looking for ways to streamline people operations, gain actionable insights from people data, run payroll and workforce management with less effort, and improve overall employee and manager experiences.
There are many compelling reasons to move your payroll function to the Cloud. While payroll accuracy has always been essential, studies show that today’s younger workforce is more likely to make public complaints (with social media at their fingertips) and change organizations than previous generations. Talent acquisition and retention, employee engagement, and building up your company’s reputation are just some of the pertinent motivators to make the change to Cloud payroll. Greater accuracy and transparency, and the ability to have data on hand to drive future business growth, provide further compelling reasons.
Indeed, there are several complexities to consider and important decisions to be made prior to implementing a comprehensive Cloud-based payroll solution, but working with a team of expert and trusted specialists will put you and your organization in a prime position to reap the rewards of what is fast becoming a must-have for business continuity and organizational success.
Of course, implementation is only the start of a new phase which will require a forward-looking strategy to create continued value and innovation. As you leverage technology to deliver the key organizational outcomes you seek, Effective People is the partner you need to support you on every step of this exciting journey.
If you want to learn more about the benefits of Cloud-based payroll, you can download our eBook: "Making the Case for Cloud Payroll with SAP SuccessFactors".
About the author
Jasmina Larsen is a certified SAP payroll professional consultant at Effective People.
Her area of expertise is Swedish and Danish employment law, and she has a wealth of knowledge regarding payroll administration, labor laws, and regional procedures. Jasmina has a deep understanding of third-party interfaces, tax filing/compliance, accounting, benefits, HRIS, and implementation of ERP systems for more than 85+ companies across the Nordic countries.