This apprehension is understandable. But if we truly believe that our workforce is our greatest asset, which is perhaps apparent now more than ever, it is important that we recruit, train, manage and develop them in the most effective ways possible. With this in mind, HR and payroll cannot afford to stand still.

 

Fortunately, advancements in technology have opened up a raft of new possibilities that sets payroll and HR departments right at the heart of business progression.

 

Whilst it’s true that the latest software can automate previously time-consuming manual processes, it is important to banish the misconception that technology will replace human contact. Yes technology should be intelligent, supportive and proactive to alleviate process headaches, but experienced professionals still play a crucial role in utilising the generated information to look after employees and create new opportunities. Intelligent technology simply allows the evolution from a transactional HR and payroll team, to a transformational HR and payroll team, to take place.

 

As well as reducing the time spent on administrative tasks, technology presents opportunity for innovation and highlights how the company can further progress.

Optimised efficiencies will alleviate the payroll and HR administrative burden, giving these professionals more time to develop meaningful relationships not only with their own teams but throughout the organisation.

Technological advancements mean that software has progressed far beyond simply being a databank. From collating expense records to generating electronic payslips and even effectively managing the recruitment process, today’s software makes it easier than ever for companies to foster positive relationships and engage with employees. By looking after the daily needs of the workforce, companies can demonstrate their commitment to the wellbeing of their staff.

 

HR specialist Samantha Parr explains how global aerospace parts distributor Wesco Aircraft Europe is using technology in new ways: “Our software has allowed us to offer completely new benefits, for example employees now have the option to exchange a proportion of their salary for our pension scheme. If we had attempted to offer this benefit without the technology in place, it would have been an incredibly labour-intensive job and we wouldn’t have the system’s proactive prompts and integration checks in place to ensure best practice is followed.

 

“The level of transparency and synergy that we’ve now achieved between our payroll and HR functions as a result of the software, has also enabled us to develop a greater understanding and empathy for the value of work that we each undertake.”

 

Ethan Kelly-Wilson, group head of HR operations at the Institution of Civil Engineers (ICE) is also using technology in new and innovative ways: “We have reduced our reliance on recruitment agencies, making use instead of an online recruitment functionality that allows us to post vacancies on job boards and enables candidates to submit their application digitally to our HR system. CVs and applications are then instantly available and can be viewed and shortlisted by our team and line managers. This not only saves time (as we no longer have to manually key in any application details) but it also removes the potential for any discriminatory bias, even if unintentional, from the process.

 

“But we want to build on efficiencies we have made, so we’re currently working towards removing paper from the recruitment and onboarding process entirely. We are reviewing our process so that our integrated HR and payroll software will email the successful candidate with a congratulatory appointment letter and will point them to a system log-in whereby they can input their own personnel details and complete any HR-related tasks. Not only does this encourage employee engagement from day one, but this paper-free ethos also echoes the sustainability agenda that ICE works hard to foster throughout the civil engineering industry.”

 

It is important to remember that payroll and HR technology has the potential to be a valuable business-wide tool, not just a piece of equipment that is utilised solely by the immediate functions.

 

Wesco for example are utilising their technology to build robust management reports that highlight the ‘personality of the company’. These reports – which analyse factors such as geographical labour spread, cost-to-absence and average salary for example – are very helpful in quarterly board meetings.

 

It’s a theme seen at other companies too. Phil Silver, HR operations manager at Punter Southall Group comments: “I think many people underestimate the positive impact that HR and payroll software can have in business but these benefits shouldn’t be overlooked simply for fear of the unknown.

 

“As the economy looks to recovery, the success and sustainability of organisations depends upon the quality of staff and the efficiency with which they work. The role of HR and payroll in the modern business environment has therefore developed beyond the simple necessities of maintaining employee records and documenting absences. It now has a valuable strategic contribution to make in the boardroom.”

 

In today’s businesses, more and more people are working in the field. Their ‘office’ might be based at home, their car or even offshore. Technological advancements in software have acknowledged this change and now make it possible for staff to interact with HR and payroll systems wherever they may be. ICE’s Ethan Kelly-Wilson agrees: “In today’s world of ever more flexible working, having systems that can only be accessed in the office is increasingly irrelevant. Approximately 80 members of our team for example are responsible for developing our business throughout the UK and beyond, therefore they tend to be in the field where our customers need them, rather than being chained to a desk.”

 

With self-service functionality, an employee can request and obtain authorisation for annual leave, having checked the team diary to ensure no holiday clashes, all whilst sitting at home surfing travel agents’ websites. At the same time, such accessibility encourages people to take responsibility for their own HR and payroll-related actions, and if this philosophy transcends throughout the company, it should heighten support for – and raise the profile of – these functions.

 

As an Ofcom report* from August 2011 highlighted, nearly one in three adults now uses a smartphone. The rocketing popularity of this mobile technology means that more and more people want to – and can – access information and the internet on the go. It is therefore important for HR and payroll software to keep up with these advancements, hence why leading software is now accessible via mobile apps.

 

Ethan Kelly-Wilson explains how ICE employees are using the mobile technology: “Now staff can book holidays, check their payslips or monitor outstanding HR tasks wherever they may be, which means they remain on the road as the information is at their fingertips. The dynamism of this mobile resource not only makes the most convenient and efficient use of their time, but it also encourages them to focus upon the job we have employed them to do.”

 

Within any industry there will always be challenges to overcome when introducing new technology. A cautious approach is perhaps therefore to be expected, and to a certain extent, a level of apprehension is not a bad thing because that way the process of researching, assessing, procuring, implementing and rolling out the software will not be rushed. There are various factors to consider to ensure the whole process is fully understood and the challenges overcome

 

When it comes to highly sensitive data such as payroll information, it is natural for people to worry about security. However, when electronic payslips were first introduced for example, the combination of a secure system log-in and unique password access meant the likelihood of confidential data theft was actually reduced. In fact, the CIPP later revealed that electronic payslips were 2010’s most popular payslip presentation method, highlighting the value of technological foresight.  

 

Some companies also fear that their staff will struggle to adapt to new systems – particularly if they are not IT-savvy. However by involving individuals early on in the process, the transition can be incredibly straightforward as Ethan Kelly-Wilson found: “Very few of our employees are technology-trained individuals, in fact many would say that they don’t have much IT experience. We knew we needed to make that transition from a paper-centric organisation to one that was able to reap the benefits of investing in technology, we just needed to source the right technology for us that was so user-friendly and intuitive, anyone would find it easy to use. We consulted with our workforce before we proceeded with the procurement of our HR and payroll software, so that employees had the opportunity to ask questions and raise concerns.”

 

It is important that the development of new technology is a collaborative process between developers and clients. This is why it helps when providers truly understand the marketplace and industry developments (legislative or otherwise).

 

Technology no longer belongs to ‘techies’, it belongs to ‘ordinary people’. Ten years ago technology (and developers) used to dictate how software had to be used, but now ease of use and fluidity means that the ownership and control lies with the people that utilise it on a daily basis.

 

Better-quality software houses won’t devise a technology ‘road map’ based solely upon developers’ aspirations. Whilst continual education and technological awareness is important if vendors are to retain a competitive edge, software evolvement should occur as a result of client feedback and developers’ capabilities to satisfy these needs and requirements.

 

Phil Silver began to think outside the box as Punter Southall Group’s comprehension of their system grew for example: “We’d found that there were no real controls in place for the claiming, management, authorisation and payment of expenses, which lead to great inaccuracies. So we spoke to our vendor’s client services team and worked closely with the developers to turn our bespoke requirement into a reality. We were one of two software clients to initially pilot and roll-out the completely new functionality, and as a result we have achieved coding uniformity, claim control and overall group consistency. We have 100% accuracy over payments and the significant time-savings have helped our financiers greatly. Most importantly though our expenses reports, which are generated through the system with just a few easy clicks, have given us a more comprehensive understanding of expenses, a crucial part of our business.”

 

Ethan Kelly-Wilson explains: “Having worked in Human Resources for many years, I have witnessed first-hand how technology has evolved within the discipline. From personal experience not all software developments deliver on their promises, however this is perhaps because they’ve been built by isolated developers rather than people who engage with the end-user and truly understand the needs of a modern HR and payroll department.

 

“I guess the thing with technology is that once you understand it, and you can see it work, you get the buzz. One innovation drives another. As an organisation we have been inspired by the software and now we are constantly looking at what it can do for us next.”

 

Author: Dan Edwards, software development director at Cascade HR (www.cascadehr.co.uk)