Extract From In this Together
Personnel Today, 12th February 2007

Payroll used to be seen as a mouse in HR's shadow. But the two functions must now move closer together than ever. Sue Weekes reports.

"I haven't seen anyone from HR in two years," a leading UK corporate was recently overheard saying at a finance conference. As the gap between finance and HR is supposed to be getting smaller, it seems startling that two functions which have a huge common ground should exist as disparate elements, but it remains the case in many organisations.

Even with technology driving integration - and bringing potentially massive cost and efficiency savings - there is still a reluctance for the two sides to come together, and this is as much down to cultural differences as the practical aspects of the role.

...Melanie Guy is HR Manager at HR and Payroll software and service supplier Snowdrop, but has also worked in Payroll. "You rarely receive thanks for paying someone and getting it right," she says. "But getting a new starter's pay incorrect or not paying them at all can undo all the hard work during the recruitment and induction process in an instant."

While the two sides may not be natural bedfellows, the drive towards integrated payroll and HR systems means they must work more closely together than ever before. Organisations cannot expect to reduce costs and administration - the main driver for integrating the two - unless payroll and HR work in harmony.

In 2006, Snowdrop carried out a survey on the relationship between HR and payroll after it witnessed first-hand some of the difficulties that can arise if the two don't work together.

It revealed that information delivery is often at the heart of the problem: more than 60% of payroll professionals believe HR doesn't give them accurate information, while 54% think HR doesn't keep them up to date. That said, the survey found both sides willing to work more closely together (96% in payroll and 85% in HR).

...Getting the process right as HR and payroll come together is crucial. All too often old processes are mapped on to new technology, which in many cases means opportunities are missed. "Payroll's detail driven approach can mean it's not prepared to bend," says Emma Taylor, a sales executive at Snowdrop. "HR has to be given the opportunity to be flexible." ...