Dependable payroll, dependable bottom line

Dependable payroll, dependable bottom line in summary:

• There’s been a significant shift in the priorities of big businesses recently; with a renewed focus on financially-based initiatives, and rolling back HR-based projects.
• Luckily, the right technology can help people and payroll professionals justify their workforce-based initiatives, even when businesses are keeping a close eye on spending.
• Ultimately, choosing the right HRIS and payroll can have transformative effects on all aspects of a workforce.

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When it comes to business, it’s all about the finances. Right?

Well, yes, of course. But even the savviest businesses don’t solely focus on the bottom line. Indeed, in-the-know organisational leaders are aware — whether they head up the whole business, the company coffers or people strategy — the best businesses don’t just focus on the figures.

They’ll also check in on the health and wellbeing of their employees, keep up to date on the sustainability impact of their actions and ensure they’re maintaining a healthy work culture. After all, this all forms part of the balanced mix that can drive long-term business viability. Indeed, the stats show this, with organisations that prioritise ESG and employee health usually ending up better off.

However, while earnest finance, payroll and HR staff know business isn’t just a numbers game, it seems the business world is now re-focusing on cold hard capital. For example, a 2024 E&Y study, published in Harvard Business Review, found that companies need to focus more on the cash they have access to and on creating greater value… and it’s a mindset that’s making its presence felt.

Many big-name firms have put non-financial commitments on the back burner as they seek to boost the bottom line. Asos, for example, has cut DEI targets for profit-focused goals, while other organisations have also run back investment in schemes that don’t directly (although there’s lots of evidence to suggest they do help indirectly) boost profits.

So, what’s driving this reset of priorities?

A focus on the figures

It’s easy to see why finances seem to be increasingly centre stage. In the UK, difficult economic headwinds have hit individuals and businesses alike. While businesses might be sharpening their focus on the figures, employees are also keen not to miss out.

With inflation and labour market difficulties being a constant over the last couple of years, many staff have been keen to ensure they get boosted pay (in return for loyalty, hard work and to keep up with rising rents and mortgages). In addition, countless organisations have been happy enough to grow pay packets as they seek to retain and motivate their top talent.

But, with businesses keen to make every penny count, there’s a few burning questions that need to be answered, such as whether this is happening in a strategic manner? And is pay uprated at the right time, for the right employees, in a way that continues to drive towards business goals?

And, to make all that happen, is it all being supported by software and services, such as HRIS or in-house payroll, that are fairly priced and effective enough to drive towards the over-arching financial goals that act as the business’ lodestar?

There’s certainly a lot to unpack there… luckily, dependable payroll can help. Here’s how…

Financial targets meet targeted, flexible payroll

Most finance, payroll and HR teams know the importance of aligning organisational goals with compensation policy. If your organisation has ambitious profit targets or growth plans, having a compensation plan that encourages staff to be motivated and productive makes sense.

But even the most strategic and organisationally aligned compensation plan won’t support success if the HRIS or payroll is jamming up the synergy in the middle.

Here, consider how an all-in-one HRIS, like Cezanne’s modular option, might benefit overall financial targets by allowing administrators to scan all critical information (such as Career & Succession planning, pay data and performance management) in one place. Not only does this boost compensation strategy, with quick access to multiple data inputs, but the right provider allows changes in one module to be reflected in others – ensuring that any changes happen efficiently and accurately.

It means that any pay boosts, bonuses, and rewards work to ensure that individuals and teams delivering for the business are adequately remunerated and rewarded. In other words, still motivated to push the company towards big-picture financial targets. Here, the choice of software is a boon to the strategy.

Up-to-the-minute data

Furthermore, all-in-one modular HRIS should mean real-time data transfer between modules. This saves manager’s time to be spent on more strategic, value-creating tasks (rather than keying in data twice entry) and ensures that staff who are performing, are getting rewarded, and are likely in the company’s succession and strategic plans.

Indeed, with Cezanne’s modules – such as Insights – you can analyse performance, pay, and employee sentiment all in one to ensure that all policies and efforts are geared towards success, backed by the most up-to-date data you can possibly get.

Targeted, transparent success

If the business has a clear financial goal, and there’s a strategic compensation plan to support it, then payroll needs to align with both of these elements. It’s here that a flexible native payroll software, part of a wider module in an all-in-one HRIS, can be worth its weight in gold.

Firstly, with seamless, data transfers between modules, you can rest assured that high-performing staff — who have been promoted or rightly rewarded — will have that reflected in their pay packets without fuss, hassle or delay. All in a compliant and secure manner, with all the needed processing quirks — from mandatory deductions to HMRC reporting — taken care of by partnered experts and automation.

And, with a native payroll module, all information and pay reflections are also in one digital location. This means administrators and employees can check compensation, reward and career planning policies with ease, ensuring that pay, performance and long-term company needs are aligned.

More than just payroll

Of course, your in-house payroll should exist to support the company’s strategic goals by securely, accurately and responsively remunerating staff for efforts. However, when pay is linked to performance rewards more effectively payroll is only one part of the strategic picture.

Indeed, most in HR know that supportive, inclusive cultures — where staff are appreciated by managers and peers as important cogs in broader efforts towards company goals — are critical to success. As a Gallup study from last year highlighted, simple things like peer gratitude can be hugely motivating and boost productivity by almost 10%.

So, how can all-in-one HRIS support this? Well, if that HRIS has a performance management module, then it could use regular check-ins, and 360-degree feedback utility to ensure that employees feel valued for their efforts. The right HRIS can also ensure this gratitude is undertaken in a strategic manner, at the right, and backed by bonuses and at the right time for bigger company goals.

If that managerial and peer feedback is aligned with pay and succession planning, in a strategic manner — something possible with the right HRIS — and driven by data-led analysis, a simple thing like gratitude can work to ensure those who deliver the most towards increasingly central business financial goals are retained, stay motivated, and stay delivering.

It’s here that a simple ‘thanks’ turns into a digitally underpinned, pay-matched, long-term planning asset.

Payroll: a winning player

So, why native payroll and an all-in-one HRIS? While it’s clear that the re-emphasis of financial goals by outside economic forces was hardly in HR’s and finance’s control, these teams can control how employees work towards the newly central goals.

And, while a focus on top line financial goals and employee pay shouldn’t mean side-lining DEI, ESG and employee wellbeing, the right software choices can ensure that healthy cultures (with fair pay, reward, transparency, and performance management at their centre) aren’t so hard to maintain and, rightly so, help drive towards the financial goals companies are increasingly chasing.

Indeed, the right HR and payroll software ensures that disparate elements of business strategy and employee life, like pay packets, line up and work in sync when driving towards those all-important financial goals.