So, we asked, on average, how much time they spend preparing payroll input submissions per payroll run. The results:

• 49% of respondents spend more than 6 hours
• 23% of respondents spend 2-4 hours
• 20% of respondents spend 4-6 hours
• 8% of respondents spend less than 2 hours

This means 69% spend 4 or more hours per payroll run preparing payroll inputs; wow, that’s a lot of time.

When you multiply this by the number of payrolls that need to be managed monthly (this could be 20, 30, or even 100+), these numbers paint a stark picture for many organizations and payroll teams. Despite significant investments in HCMs, the upstream process is a considerable time investment. That’s probably also why 43% of you told us that automating in/outbound data is your top priority for 2024. 

Let's delve into the implications and explore solutions together!

There are a lot of data sources, a lot of reviews

In a poll I ran in October 2022, 65% of respondents indicated having 5 or more unique data sources flowing into their payroll process per country per payroll run. I cannot help but think this supports the many hours needed to process inputs and submit (outsourced) payrolls for processing by the provider(s). Connecting these data points now makes a lot of sense. You need to get a grip on your inbound data flows, apply proper controls, and adopt a system-agnostic integration approach. 

But where do you start, as the next payroll is already screaming for your attention?

Let me tell you what I used to do, as you might find it helpful.

Gather information, gain visibility and understanding

Just start with a simple exercise and create a data-gathering template. You can itemise this template as straightforward as this:

• List some static data about the payrolls: region, country, entity, payroll run frequency and provider (or in-house system).
• List the number of REAL input sources: HCM, global benefits, local benefits, equity, time & attendance, time tracking, commissions, pension elections, local payroll information and forms, tickets and emails. These are all your sources.
• Now, for each of those input sources list the number of data flows per payroll run frequency; number of integrations, number of reports (can be flat files) and their occurrence (i.e. integrations can be run daily, tickets can be submitted daily).

You might ask me, and rightfully so; I would love to get this information, but where do I start? This will sound lame but at the beginning. You create this template and then (depending on your organizational structure) ask away to your central, regional and/or local team; the more personal, the better. I used to get those emails with “complete this template by x date” out of the blue; it didn’t work. A personal interview can be just a one-hour call and do wonders: explain the WHY around you gathering this data (to help them, to improve!) and then collect the data while chatting. 

But that takes time, you say? 

Yep, it does - but so does preparing payroll inputs without improving.

Get the dirt from the ground; go beyond a template

As you will notice when discussing this, a lot of frustration (not in the last place about those upstream partners being late or not accommodating) will surface. You are now in the intimate zone; take honest advantage of that and truly understand the issues. And while you are at it, ask for suggestions for improvement, too! You will be pleasantly surprised by the great and innovative ideas that people on the ground will come up with. As a leader, you can use those and empower the teams to make a change, but remember, it starts with the [man] in the mirror!

But what about that productivity drain?

Ah, yes, I did prompt that with the blog title. Let’s do the math, shall we:

• If you manage 20 countries and about 5.000 employees (a widespread median scale in global payroll) and run 30 monthly cycles (mostly monthly, some bi-monthly).
• You are in the 6 hours or more benchmark for spending time on payroll inputs.
• Your team then spends at least 180 hours per month on payroll inputs. That is 22,5 working days (8 hours a day) per month, at a minimum.
• On an annual basis, that totals to 2.160 hours or 270 working days per year.

You know what I am getting at here. Can you imagine the time and cost savings you can achieve if you are in the top benchmark of 2 hours or less time spent on payroll inputs? You can have your teams focus on more value-added activities, take on more activities, or reallocate resources. 

So how do you get there?

You improve your upstearm processes and dataflows by gathering how and where they flow and then seeing where you improve them. Trust me when I say you will end up with 5 or more data sources and a plethora of data flying into your payrolls. You will then conclude that you need a system-agnostic approach:

• Be as automated as you need to be. Validate inputs automatically so your teams can focus on sorting out anomalies, not finding them, and avoiding them in future.
• Remove the need for any pre-processing, which is manipulating data from upstream partners before it is sent to the provider for processing.
• Rotate the responsibilities within the team to cross-train each other in other countries (81% of your peers do it too). 

With a centralized platform, you can have the flexibility to tailor to local needs in a standardized way. Huh, how does that work? Let me know if you want to see it!

Not solving these challenges is a choice, as the solutions are out there. The status quo is a thing of the past, not your present, and definitely not your future!

So, what’s next?

The first step to tackling this productivity drain is gaining visibility. Start by mapping out your payroll data sources and flows. This will highlight inefficiencies and areas for automation. Remember, the goal is to streamline the process, reduce manual intervention, and empower your team to focus on more strategic tasks. By taking action, you're not just improving payroll efficiency but investing in your team's productivity and your organisation's success. It's time to break free from the status quo and embrace a future where payroll is a strategic enabler, not a resource drain.

Over to you.