Brown Cardigans and Technology
Historically, the evolution of the payroll function has crept along, painstakingly so. However, with advancement in technology, and in turn capability to access powerful data, the role that Payroll plays within business in reality, should have advanced at a far quicker pace, if not historically then certainly in recent years. The payroll function you historically think of is gone. Finished. If you still picture brown cardigans and payslips in envelopes delivered to your desk, you need to catch up. Quickly. The Payroll function now plays an integral role in modern day businesses – think a cross over between Industrial Relations, HR & IT.
Coupled with the advancement in technology, employees are now more informed than ever. They know what they are entitled and rightfully so, aren’t afraid to tell an employer they’ve done the wrong thing. Recent high profile cases highlight this.
With so much reliance on your current Payroll system producing the correct outputs, has this changed what the typical Payroll professional looks like? Firstly, there needs to be focus on compliance. Second & third…there needs to be a focus on compliance. Yes compliance. Extend this beyond the typical focus on Tax & Super – Payroll and its function in the broader business ecosystem have now moved passed this. Yes, this is still a fundamental aspect of Payroll function, however Payroll professionals need to understand the entitlements under the relevant Industrial Instruments – how these are built in the Payroll system – and understand if your payroll outputs match these interpretations.
Systems can do amazing things – but we, as Payroll Professionals need to understand the inputs, the interpretations and subsequent outputs to ensure a compliant and efficient Payroll function. There is a lot of faith put into Systems – “we are in a climate of set and neglect”, as the previous Fair Work Ombudsman, Natalie James, so perfectly put it. Not only does there need to be a focus on compliance, there needs to be a focus on audit, and constantly reviewing your systems to ensure the expected outcomes are being produced, even if there has not been any legislative change.
Payroll of the future is a leap from its past. It is now time to embrace what it can be, which is now a little more useful than a wardrobe staple brown cardigan.