Payroll innovation should be capitalised on to improve employee retention

Payroll innovation should be capitalised on to improve employee retention

The role of payroll in talent strategies is often overlooked, but with innovation growing in the function, businesses could be missing a critical component to create more competitive employee packages.
That’s according to a new report by CloudPay.

The specialist global payroll provider’s Payroll Efficiency Index (PEI) Report revealed evidence of increasing technological innovation in payroll, but the expert has warned that keeping the function siloed could be detrimental to employee engagement overall.

According to the PEI report, while the UK has the lowest First-Time Approval (FTA) rate in pay (52.42%), when this is coupled with falls in both Data Input Issues (DII), and Issues Per 1000 Payslips (I/1000), it reflects an increased adoption of technology and innovation in payroll.

As Grant Tasker, Senior Director of Global Payroll at CloudPay, explained, while this is positive news for core HR systems, the opportunity it presents to increase employee engagement and retention could be overlooked, without greater collaboration:

“Payroll has often been seen as a purely functional and transactional element of a business, but in reality, it is so much more. Yes, people need to be paid, but there’s more to the function than just this. We’ve seen huge technological innovation in recent years, with the ability to offer mobile payments and pay-on-demand (or Earned Wage Access) emerging to meet the growing needs of the workforce.”

“This innovation has a crucial role to play in employee benefits packages, but far too often payroll works in silo. It’s crucial that the function is given the weight it deserves in strategic HR discussions. Without this collaboration, progress could slow which, for any employer, could be detrimental to talent strategies now and in the future.”



Press contact

Bruce Callander
bruce@bluesky-pr.com
07725 331476

Notes
The PEI report is based on analysis of more than one million payslips that CloudPay processed in 2023, from over 130 countries. Traditional and widely used payroll metrics, such as timeliness and accuracy, very often paint a falsely positive picture of a payroll operation's performance. CloudPay’s PEI report focuses instead on a series of KPIs specifically designed to give true insight into the time, cost and complexity required to deliver a payroll; these KPIs include First-Time Approvals (FTA), Data Input Issues (DII), Issues Per 1000 Payslips (I/1000), Calendar Length (CAL) and Supplementary Impact (SI).