A seamless payroll process can ensure better employee journeys whilst boosting internal company alignment as well; Grant Tasker, Senior Director, Global Payroll at CloudPay weighs in with some thoughts and best practices on global payroll norms:
Hi Grant, tell us about yourself and more about your role at CloudPay…
I began my career in payroll over 30 years ago, serving in various roles within the industry. I joined CloudPay in 2011 as an Implementation Consultant where I focused on implementing payrolls using our technology. This role sparked my interest in how technology supports businesses and people.
From there, I managed Operations for EMEA and then moved into a global role as Senior Director of Global Payroll where I currently oversee business processes and improvements. This includes technology, automation and updates across our entire organization. Leading teams and driving this area of the business is something I take great pride in. From my first role at CloudPay to the one I’m in currently, I’ve consistently aimed to provide the best technology for our customers to support their business operations.
Can you talk about some of the most interesting HRTech innovations you’ve seen from the global HRTech market that’s redefining or enabling better HR payroll processes?
The HRTech industry has made significant strides in absorbing and processing data. The ability to funnel data and validations directly into payroll systems from various HCM platforms globally is remarkable.
This innovation impacts both global and local markets. For instance, local integrations with systems like Workday and the exposure to payroll information through mobile apps will revolutionize employees’ access to payroll data anytime and anywhere. Currently, local payroll processing is a cumbersome, manual process prone to errors. Now, real-time validation of local payroll information will enable quicker, more accurate payroll processes. Our customers have found this update to be a game-changer, allowing employees direct access to their payroll data.
What are some of the top payroll changes that most mid to large organizations still struggle with?
One major challenge is optimizing global payroll operations. This requires an internal transformation of pay codes and payments, especially when investing in a central HCM system. Businesses need to organize HCM pay codes within the system and transfer data prior to implementation. Although this upfront effort can be demanding, it saves significant time in configuration and ensures accurate data storage in the long run. Organizing payments and deductions early on is crucial for global expansion as it simplifies working with a payroll provider and supports efficient global operations.
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As startups and smaller teams start expanding and going global: what payroll fundamentals should they keep in mind according to you?
For smaller teams looking to go global, my advice is to review what data is required for accurate processing from the start and then consolidate the collection of that data. As businesses and teams expand, they need to consider the vast amount of data and varying global payments and deductions that exist in their organization.
Accurate data collection is fundamental to successful global growth, ensuring payroll accuracy and timely employee payments. For example, one of my smaller customers wanted to implement a new HCM integration into CloudPay instead of using templates. We were ready to proceed, but it was discovered that data sources varied across different offices. As a result, it was going to take them much longer to feel the benefits of a central solution.
How can seamless payroll experiences drive better employee journeys?
At the end of the day, the most important aspect of any payroll company is to pay employees accurately and on time, despite any additional features offered by the solution. One of the biggest drivers of a seamless payroll experience is customers taking the initiative to organize their data, ensuring it is accurate and provided as timely as possible.
Paying employees late or inaccurately significantly impacts overall performance and satisfaction. Payroll departments are often blamed for mistakes made when, in fact, internal challenges within other departments (and the data they provide!) can have a downstream effect with employees’ pay. This includes providing late or inaccurate data to the payroll department for processing, which negatively impacts the employee journey. Ensuring accurate data collection from the beginning and working closely with the payroll provider guarantees that the employees are paid accurately and on time, presenting a seamless experience for the employee.
We’d love the key highlights from CloudPay’s recently released 2024 Global Payroll Efficiency Index (PEI): what takeaways would you highlight for our readers?
1.Our 2024 Payroll Efficiency Index (PEI) report revealed interesting findings regarding data input issues. The proportion of issues caused by data input mistakes out of all payroll issues showed a slight decline by 1.1% year-over-year and is now 10.1% lower than when the report was first published in 2019. This decline indicates more validation is happening before data hits our payroll engine, resulting in fewer errors. This highlights the importance of data quality and how, when used effectively, HCM tools can boost payroll efficiency.
2.In the United States, first-time approvals, the percentage of payroll runs approved at the first attempt without changes, are at 69%, compared to 74% globally. The PEI report also details our robotics tools that trap data validation errors before they reach our customers and their payslips. While there was a drop in first-time approvals, we’re actually seeing fewer errors on the payroll that’s causing that drop.
3.A great indicator of data being utilized more effectively is that globally, issues per 1000 payslips have fallen for the second consecutive year and the rate is now 35% lower than five years ago.
If you had to share a few points on the future of payroll and automation: what would they be?
In terms of the future of payroll and automation, I’m particularly interested in the effect that RPA and AI will have on payroll processing. From a CloudPay perspective, I’m still waiting to see AI platforms that can drive repeatable benefits into the heart of payroll at a detailed level. However, I’m hopeful that these technologies will lessen the burden on tasks that can be alleviated by RPA and AI. These technologies can also improve the overall efficiency and accuracy of payroll data collection, opening the door to a world of opportunities for our organization and our customers to better support their payroll needs.
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Grant Tasker, is Senior Director, Global Payroll at CloudPay