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 Near Miss or Early Warning?
You’ve tackled some big challenges recently. Huge legislative payroll
changes plus the technical issues of trying to manage payroll remotely
during lockdown, often using systems and processes that haven’t changed
in years for many businesses, despite the enormous changes around you.

Thanks to you and your team The way we work is changing, for Payroll matters and this is your chance
achieving some heroic acts, you’ve example 44% of employers now have to make sure everyone realises it. Your
just made it through the worst. official flexible working policies in finance and HR leaders are already
But that level of uncertainty and place, up from 24% pre-COVID-191. thinking about how the company will
risk are unsustainable. That directly impacts your world. weather the global recession, you can
make sure that payroll is a core part of
Those late nights in the office, the Payroll needs to adapt to this new
that upcoming optimisation program.
difficult remote management tools normal and find simpler, more modern
Starting the conversation means you
and painful reconciling that comes ways of working that are fairer on
control the change, you get recognition
with HR not having the right data payroll teams.
and you make payroll easier.
in their shiny new systems; all that
needs to be a thing of the past.

44%
of employers now have official flexible working
policies in place, up from 24% pre-COVID-191.
That directly impacts your world.
2 Take a new look at pay | Payroll
 Blindspot or Spotlight?
There are things you’ve wanted to do with payroll for a long time –
upgrade the technology, reduce risk, automate tasks. Post-lockdown
the whole business has realised what a core function payroll is.

The spotlight is on you. Don’t miss

this window of opportunity to
show the business how dangerous
leaving blindspots across your
Turn these weaknesses exposed by
COVID-193 into your business case for change:
• L
 ack of global payroll process
• L
 ow level of automation –
A high level of manual processes
made it difficult, or in some
instances impossible, for payroll
35%
payroll function is. Show them
– When asked, 43% of payroll
teams to adapt to remote working.
of companies do not
professionals said they had a very low
how a modernised payroll approach
or limited levels of standardisation • L
 ack of digitisation – Payroll
have a payroll strategy –
could optimise the core of how although this reduces
globally.2 This made communication employees processing high
your business runs.
between payroll teams difficult in a volumes of paper documentation to 25% if payroll reports
Interestingly 35% of companies time of crisis. found it harder to carry out their
do not have a payroll strategy – jobs remotely. in to finance rather
• P
 oor data quality – Low-quality,
although this reduces to 25% if
unharmonised data prevented timely • S
 ingle person dependencies
than HR2.
payroll reports in to finance rather
reporting and slowed business – Teams with single person
than HR2.
decision-making at a pressing time. dependencies struggled to keep up
To make the most of this unique with their growing workload. While
• S
 low response to regulation changes
opportunity for improvement, a lack of proper documentation in
– Organisations without a standard
you need to focus your aims. electronic format made it difficult
process for receiving and implementing
for others to help out.
regulation changes were at greater
risk of violations.

3 Take a new look at pay | Payroll

 Tactical or Strategic? We have replaced
There’s plenty to gain from advancing your payroll process, but multiple vendors
at what cost? Before the impact of the global pandemic 64% of with ADP as our
European employers said payroll is too important to risk a major one global vendor.
change4 – worth thinking about if you view payroll as purely tactical. We launched ADP
in 30 countries, all
However, a step-by-step approach and It also notes that organisations “…need open, within our 18 month
a cross-functional team of finance, accurate payroll data to run and analyse timeframe. And
payroll and HR, means you can limit current operating models, run scenarios and
disruption and make a huge strategic also know exactly what is going on, to look
now 99.9% of our
impact quickly. Deloitte perfectly nails at how you allocate work, where, at what employees are paid
it in their recent paper ‘Cost resilience cost and with how many resources.” on ADP.
amid and after COVID-195’.
There has never been a better time to secure
To be prepared facing a new crisis such buy-in for modernising payroll.
as the COVID-19 pandemic, companies
Imagine how rapidly you could see
have to swiftly adjust their cost – Traci Memmott,
strategic benefits.
models relying upon a truly agile and Global Head of Payroll, PayPal
scalable business, including:
• I mproved flow of resources to
areas of strategic importance
• Reduced level of inefficiencies 64%
• M
 inimised effects of
organisational weakness
of European employers say
payroll is too important to
• D
 ecreased amount of effort
and costs dedicated to risk a major change.4
4 Take a new look at pay | Payroll non-strategic activities
 Small steps Payroll
PHASE ONE PHASE TWO PHASE THREE
Optimisation Visibility Agility

or Giant leap?
Transformation
Impact
Drive out cost inefficiencies
and look for ways to
make your payroll
Make changes that enable
sharing of payroll-linked data
across your organisation to
Build flexibility into your
payroll solution so that
you can adapt to new
Take a look at the graphic to see how a solution simpler. support collaboration and ways of working.
decision-making.
phased approach to payroll transformation
can help you target your key challenges. • Core business flexibility
• Total visibility over spend • Effortless local compliance
• Long-term complexity • Strategic cash management and reduced global risk
See value in your payroll eliminated
transformation project, faster. • Accurate modelling, • Pay continuity
Focus on changes that drive
• Processes simplified forecasting and reporting across workforce
savings and efficiency first, and modernised
before progressing to strategic Transformation • Team productivity increased
transformations which will
benefits for Finance
pay-off in the long-term. Releasing significant Driving powerful Adapting to business
cost efficiencies insights and regulations
Transformation
benefits for HR • Streamlined team processes • Global payroll data • Different pay structures
integrated with HR systems by role and territory
• Increased employee
satisfaction and reduced • Advanced HR benchmarking • Innovative talent attraction
HR queries and reporting and retention
• Effortless regulatory • Accurate benefits planning • Simplified employee
compliance and equal opportunities on-and off-boarding

5 Take a new look at pay | Payroll

 Overspending or Under control?
According to the 2019 EY Global Payroll Survey, only 26% of businesses rate
the performance of their current payroll provider as good or very good on cost.
Simply take a look at the hidden costs of payroll below to see the serious
efficiency advantages alone that could be gained by a long overdue strategic
investment in payroll transformation.
Breakdown of payroll TCO to identify Process Improvement opportunities.

Data Interpretation Data entry & Checking & Payroll rules Processing Printing & Validating Declarations Answer
collection & offline integration controls dispatching results enquiries
calculations

Visible costs 25% 25%

35%
50%
60% 60% 65%
75% 75%
80%
90%
Hidden costs 75% 75%
65%
50%
40% 40% 35%
20% 25%
10%

6 Take a new look at pay | Payroll

 But optimisation is not just Use automation – Globally, 33% of Increase digitisation – Digitise processes Simplify the user interface –
employees say they are sometimes, that require paper forms via electronic Choose a user-friendly platform
about cost savings. It’s about often or always paid late6. Automation workflows and smart automation. And that’s mobile compatible so
having the best solution for your helps you get more employees paid on use global workforce tools for timesheets employees can access their
business needs, delivered with time by saving resource on repetitive, instead of relying on manual input. payroll easily. More than 26%
as much simplicity as possible. time-consuming tasks. Robotic process of full-time workers say they
automation (RPA) uses automated scripts wouldn’t notice if they were
Here are three things you can do to and web robots to perform actions with paid incorrectly, either because
optimise payroll and prepare your essential speed and accuracy while they don’t check their payslip
transformation plans for the detailed eliminating more routine aspects of the (11%), they don’t check their
scrutiny they will receive from your role, freeing payroll professionals for bank statement (9%) or because
Finance leaders. value-added tasks. they find their pay or payslip
confusing (9%)6.

Benefits of optimising your payroll

There’s lots to be gained from optimising your payroll process, the biggest benefits being:
Globally, More than
• I ncreased productivity – Automation and digitisation make it easier to focus on

33% • R
the important tasks and get more done every day as everything is more accessible.
 educed risk, greater accuracy – When all your information is digitised and you
26%
of employees say they receive relevant information such as timesheets and tax codes directly from the of full-time workers say
are always, often source, there’s less room for error. they wouldn’t notice if they
or sometimes paid late6. • E
 mpowered employees – With employees able to access their payroll information were paid incorrectly6.
on demand, you should receive fewer payroll queries. And any errors in payroll will
be caught sooner by employees.

7 Take a new look at pay | Payroll

 Only
Complexity or Clarity? 58%
of companies with a
Look to make changes that give you better visibility of data across
payroll function reporting
your organisation, so payroll input and output are more accurate.
to HR have a formal
This will make payroll a more reliable measure for strategic insights and reporting in strategy in place.2
other parts of the business.

Create a global payroll process – Increase data availability – Payroll data is often fragmented and siloed in
60% of payroll professionals agree or different systems and files. Reducing the number of vendors and databases you
strongly agree that a truly global payroll use for payroll, allows you to see your payroll data in one place – so you can spot
model would benefit their organisation.2 trends and gather insight to inform business decisions. With the new global
A global process gives you a view of payroll payroll solution live in over 15 countries, FedEx can now report on the payroll
across your whole company so you know information for over 23,000 employees inside a single dashboard.
exactly how many people are on
your payroll. Benefits of payroll visibility
Integrate with HR – Only 58% of Increasing visibility across payroll means you can benefit from:
companies with a payroll function
• G
 reater accuracy – With better visibility you can provide more accurate
reporting to HR have a formal strategy
data for modelling and forecasting of company finances.
in place.2 Integrating your systems with
HR means you can more accurately • A
 more strategic operation – Because you can provide real-time data to
deliver payroll in line with changes to an partners in Finance and HR, payroll becomes a more strategic part of the business.
employee’s career and circumstances.
• G
 reater control and reduced errors – You know where the information
you’re using to calculate pay is coming from, so you can be sure you have the
right data. Plus, you can access employee information faster, which makes
you less susceptible to payroll fraud.
8 Take a new look at pay | Payroll
 Painful or Agile?
A modernised payroll
To be successful in today’s challenging landscape, all parts of your business need approach can help you
to be agile. When you improve payroll agility, you positively impact a range of other
adapt to changes in business
things you care deeply about, from payroll data accuracy to making on-time payments.
operations, ways of working,
and regulatory requirements –
with minimal effort.
Faster response to regulation Upskill payroll employees – Create a plan to build careers for the future and
changes – Ensure your payroll staff know expertise within your team, with a focus on analytics and insight from your payroll
how they will receive compliance changes data to support business decisions. If there are any skills that only one employee
– whether it’s by email, publications has, consider cross-training to benefit the whole payroll team and help employees
or information service subscriptions. split their workload.
Then define your processes for changing
compliance within your payroll systems. Benefits of payroll agility
Migrate to the cloud – Using a cloud • A
 bility to deliver different pay structures – Agile payroll can adapt to
application for your payroll process means meet the demands of employees. Whether that’s flexible payroll schedules,
you can scale your solution as needed to modern payment methods or flexible working benefits like paid overtime or
meet your changing workforce requirements. the option to buy annual leave.
It can not only drive 15-35% savings but
• G
 reater expertise – Preparing your payroll team to be ready for anything
reduces error rates to a third as compared
means everyone benefits from training in new areas of the payroll process
with on-premise payroll.7
and related functions, making your team more qualified overall.
• E
 mployee longevity – When your team is ready for what’s next, people feel
more in control. This leads to greater job satisfaction and means your payroll
employees are more likely to stay with the business.

9 Take a new look at pay | Payroll

 How might payroll
need to adapt in
the near future?
The rapid move to remote working, combined with a global
recession means there are many reasons why payroll will
need to adapt in the future.

• C
 hoice in payment method – 78% of employers say companies will need to
customise their payment options to remain competitive in the war for talent.4
• A
 ddressing remote working – The payroll team need to be prepared for
issues surrounding remote workers from different tax jurisdictions and across
borders, along with questions around time tracking post-COVID-19, especially
during company audits.
• S
 upporting flexible working – This may require paying more over-time,
or allowing employees benefits like the ability to buy annual leave.
• S
 ecuring employee data remotely – To allow the payroll team to benefit
from flexible working themselves, employee data will need to be secured
wherever your team are working.

10 Take a new look at pay | Payroll

 Replace or Refine?
ADP is an inspired choice of payroll partner because we put you
at the centre of everything we do.
We’ll work with you and around your existing payroll model where possible, refining
how you operate and giving you access to our best-in-class tools and expertise to
transform how you work.
Our 3,000 dedicated regulatory specialists will help you manage the 1,500 newly
created global regulations that have impacted payroll since COVID-19 hit.
When you partner with ADP, you’re in safe hands. We’re long-term advocates of
the payroll profession and we know the value you can add.

Over the last

70 years,
we’ve worked with more
than 810,000 customers
worldwide to help
them see pay differently.

11 Take a new look at pay | Payroll

 Take a new look at pay.

It’s time to take on the challenge and unlock the power of payroll
with ADP. Get in touch today to help secure your success in the
new low-touch economy.

visit adp.in or call 1800-420-4242

ADP and the ADP logo are registered References:
1
ADP Research Institute – The Workforce View 2020: Volume Two post-COVID-19
trademarks of ADP, Inc. All other marks 2
2019 EY Global Payroll Survey
are the property of their respective 3
2020. The Hackett Group. Seven payroll weaknesses exposed by COVID-19 and how to fix them
4
2019 ADP The Future of Pay
owners. Copyright © 2020 ADP, Inc. 5
Deloitte – Cost resilience amid and after COVID-19
6
ADP Research Institute – The Workforce View 2020: Volume One pre-COVID-19
7
2019 ADP Payroll Unplugged