Advancements in technology and automation, and the constant push for greater efficiency, accuracy, and flexibility, underscore the need to think about global payroll and workforce management (WFM) as highly strategic functions. This is more than just the evolution for payroll and WFM—it’s an essential transformation mindset for any business that hopes to thrive in increasingly competitive markets.
In the article "The Global Payroll Evolution," from the October 2024 Global Payroll issue, author Tartanjulia North said, “Organizations that recognize the strategic importance of payroll and elevate it to an independent, C-suite-level department will be better positioned to navigate the complexities of today’s rapidly changing business environment.”
Deloitte’s 2024 Global Workforce Management (WFM) survey, distributed in collaboration with PayrollOrg, was designed to provide a frame of reference for benchmarking and enhancing WFM processes and technology. For payroll and WFM professionals, the survey reveals the following three key areas of opportunity:
- Strategic governance—Almost 60% of respondents lack a strategic governance structure, such as a Center of Excellence (CoE), for WFM. This gap presents a critical area for improvement, as organizations with a CoE report 80% high/very high satisfaction with their WFM systems, vs 60% or less satisfaction for those without strategic governance.
- Analytics—More than 50% of organizations surveyed are not effectively using WFM systems data or analytics. Leveraging data analytics can help unlock efficiencies, potentially saving up to 0.5-2.5% of an organization’s annual payroll spend, increase compliance, and build a case for transformation.
- Technology—Technology plays a crucial role in modern workforce management, yet most organizations are not fully optimizing the features available within their current WFM systems. Nearly half of the respondents (44%) plan to implement new WFM technology to deploy additional features.
Insights to Empower Payroll, WFM
By leveraging the insights above, payroll and WFM leaders can help contribute to overall business objectives and demonstrate strategic capabilities. Consider the following actions:
- Advocate for strategic governance: Payroll professionals should champion the establishment of a CoE within their organizations, as effective governance is key to aligning HR, operational, WFM, and payroll practices with broader organizational goals collaboratively across the organization.
- Focus on technology integration: Proactively participate in the planning and implementation of new WFM technologies to ensure that payroll considerations are integrated into broader organizational strategies, leading to better alignment and more effective outcomes.
- Leverage analytics for decision-making: Advocate for the incorporation of WFM data into the enterprise analytics landscape. By leveraging key performance indicators (KPIs) and robust analytics, payroll leaders can help identify inefficiencies and make data-driven decisions that enhance WFM and compliance.
- Prepare for tomorrow’s tech today: With many organizations planning to expand or change their WFM solutions, payroll professionals need to stay abreast of technological advancements.
For more detailed insights, Deloitte’s 2024 Global Workforce Management survey report offers a comprehensive analysis of current WFM practices, peer comparisons, and industry-specific insights, providing a roadmap for organizations to optimize their WFM systems and payroll processes.
Chip Newton is Managing Director, Deloitte Consulting, LLP. He was also a recent guest on PayrollOrg’s “PayTalk” Podcast®, where further insights from the global WFM survey were discussed.
