A guide to transformational versus transactional payroll

How does your business manage its payroll? If you’re not using your payroll data to make better decisions, then it’s worth making a change in how this important business admin function is run.

Payroll is being transformed as technology plays an influential role. The outcome is your business has access to the sorts of tools that can make compliance easier to manage.

You can also improve your accuracy when it comes to running payroll, while reporting can become a simpler task.

By using payroll software for smarter payroll management, your business can save time on processing data and more on analysing it.

This step change in how you run your payroll can be beneficial – not just for the payroll team but the business as a whole.

Imagine using payroll intelligence to assist you as your business looks to take on new employees – you could use it to create the right compensation plans to attract and retain staff. In the long run, that could pay dividends for the business.

And when it comes to being more influential within the business, a data-driven approach can go a long way to making that happen for payroll leaders.

So do you want your payroll team to simply process faster transactions or take on the bigger challenge of transforming how sensitive data and repetitive payroll tasks are handled?

This guide will help you to make the shift to a payroll data approach that will mean you’re able to add more value to the business.

In this guide, you will find the following topics:

• Payroll – new opportunities and expectations
• Bringing payroll up to speed
• KPIs for transforming the payroll function
• Transitioning payroll into a leadership activity

Here’s an excerpt from the guide:

Payroll 2.0: New opportunities and expectations

Technology is transforming the payroll industry with new tools to improve accuracy, make  compliance management easier, and use simpler methods for filing and reporting.

This new offering reflects the demands of business leaders looking make their processes lean and drive innovation through smarter ways of working.

As your organisation grows, it will be up to you to provide the necessary insights from the payroll perspective.

It’ll also be up to you to inform the organisation on the latest tools available to facilitate payroll management at scale, and what new intelligence is available to better inform business decisions.

Using payroll data for forecasting

One key benefit of smarter payroll management is less time processing payroll data and more time analysing it for future implications.

At a minimum, analysing payroll performance over a period can provide more accurate yearly forecasts, which can help manage budgets and cash flow during change or growth phases.

Going deeper, payroll data can be instrumental in assessing the true costs and organisational impact of expansions and acquisitions.

Payroll intelligence will give you crucial insights into your staffing capacity and performance, such as:

• the potential cost and impact of overtime versus adding headcount
• any added tax or compliance implications
• the effect on other staff, such as support or IT.

With these insights, you can weigh options more accurately, influence pricing accordingly, and facilitate growth for the organisation with the influence of payroll.

For more useful advice, download your free guide – Transformational versus transactional payroll.