By Frank J. Mendelson
Editor’s Note: Wendy Muirhead is Managing Director for Europe, the Middle East, and Africa (EMEA) at Ceridian. She is a highly active member of the global human resources and payroll community and is focused on driving value for customers as they manage global businesses with people in multiple territories and jurisdictions. Prior to Ceridian, Muirhead held progressively senior roles at global HCM technology companies across Europe. She holds a master’s degree in philosophy from Glasgow University.
How did you get started in your career?
My career started in finance. But after I had my first son, I took a career turn and joined Ceridian, which is where I really fell in love with the payroll industry. When I first started, I didn’t know anything about payroll or HR. So, I spent a lot of time with the payroll operations team and became very passionate about it, to the point that I know how to process a gross-to-net payslip [paycheque] manually—which I’m very proud of.
To this day, I’m fascinated by how, when you get global payroll right, you empower C-suite decision-making. Payroll has all that data, and they understand what’s happening across the whole organisation. I still love it after 17 years, and I love helping to ensure that people are paid accurately and efficiently.
This is your second stint with Ceridian. You’ve been back for almost five years, how has the company and product progressed since you’ve returned?
The business is entirely transformed. From the culture, all driven through our HCM technology, to how we support our customers to maximise the value of their people through our technology and services; it’s an entirely different business. It’s exciting to be on this journey of organic growth with our customers at the centre of everything we do, not just in payroll, but in other areas of HCM as well. Our customers are global in nature, so they see the value in being able to deliver that seamless service to their people.
Ceridian’s product and the technology has expanded into such interesting areas like our “net-pay-on-demand” pay solution that gives employees easy access to their earned pay when they need it rather than waiting for payday and without any fees for employees either.
How is the role of the payroll professional changing?
The payroll profession is changing radically as technology advances and routine tasks become automated. It’s moving from a back-office function to a strategic one, much like the role of IT and HR has matured in recent years. Payroll professionals are embracing the technological advancements that are happening, and it’s exciting to see them growing their skills as payroll moves from transactional towards driving business strategy.
Can you give an example of where payroll can move into a more strategic role?
Pay equity has become a hot topic, and it’s been amplified by the incredible levels of burnout caused by the pandemic. Employees want to feel valued and respected, and it’s hard to feel that way if you are being paid less than your colleague who’s doing the same job. At Ceridian, we’ve closed the gender pay gap to less than 1%, but World Economic Forum research has found that women globally earn about 37% less than their male peers in similar roles. This can negatively impact business in the form of reduced retention and productivity.
There’s an opportunity here for payroll professionals to go beyond routine tasks and conduct pay equity audits to learn where their organisations are falling short, come up with recommendations to solve these issues, and use data to look for potential causes so they can be prevented in the future.
What’s a big trend in global payroll that you’re focused on?
As we’ve come through the pandemic, with inflation surging and a cost-of-living crisis unfolding, modern payroll professionals need to think about the real-world impact of their processes and systems on employees. Recent studies have found that more than a third of U.K. workers are living month-to-month without any money saved for emergencies. Waiting up to 30 days to get paid places a real and unnecessary financial burden on many people. Payroll departments need to have conversations about why things are done that way and how they can offer more immediate, flexible access to earned pay so that employees don’t have to rely on high-interest payday loans or credit cards.
We did a survey of U.K. employees when we launched our pay on demand solution in the region. According to that survey, 53% said managing their personal finances has become more difficult over the past year, while three-quarters of respondents between the ages of 18 and 44 said they would be more likely to consider working for an employer that provides free early access to their earned wages on-demand over an employer that does not. The industry needs to be having conversations about how we modernise payroll so that it works for the people we serve, not only because it makes business sense but also because it’s the right thing to do.
What’s the communication challenges for a global payroll leader, and how can they successfully meet them?
My friends from the global payroll community talk about two similar challenges. The first is ensuring that compliance standards are met for submissions and payments when dealing with multiple time zones, language barriers, and local government offices that all work slightly differently.
To help address these challenges, it’s critical to have clear communication with accountable support owners locally who can act as a liaison between the global teams and local teams to ensure nothing is lost in translation. When people are confused about their paycheque, they all react the same way: they want a resolution, clarity of next steps, and an understanding of why their pay hasn’t met their expectations. Where they are based doesn’t change how they feel. That’s why having a local team who can provide support is so important.
Secondly, global payroll leaders can elevate themselves by how they represent their department to the C-suite.
I’ve worked alongside organisations where the CEO will not move if the global payroll leader isn’t comfortable. This has been more in the minority opposed to majority, unfortunately. I love supporting this exceptionally talented group that influence C-suite decisions that further enhance their team’s organizational position, leverage growth opportunities across the business for the payroll function, and gain access to new technologies and skills that can help global payroll leaders grow their teams.
What changes can professionals in global payroll anticipate regarding the expanded use of artificial intelligence?
Leveraging artificial intelligence (AI) to automate or speed up transactional tasks, and nudging data intelligently to place reviews in front of subject matter experts is where I see AI making a big difference for global payroll professionals. There is still far too much manual activity and checking going on throughout the profession, and this is not the fault of the global payroll leader. This is because the organisation they work for has not invested in new technology to support accurately building the gross profit margins with transparency and automation across the organisation. People managers have a duty to make sure that requirements for payroll are signed off. Lack of technology investments across businesses are still most of the C-suite conversations I have today, and this is where there are massive gains for both a business and a global payroll department to benefit from.
What do you recommend strategic business leaders do to leverage AI in the global payroll sphere?
If global payroll professionals want to leverage AI or other new technologies, they need to work with audit, finance, and operational leaders to build a case for change. Demonstrate to the business there is a better way to automate your “build the gross” (profit margins) activities across the organisation. Structure your committee to support these discussions and volunteer to take the lead. Global payroll leaders are the masters of compliance and process. Thus, leveraging expertise and widening this conversation to bring in other business leaders will encourage C-suite discussions that can positively change how your business operates across your entire global organisation. Investing in technology can help you automate and measure your investment which can completely change the dial for organisations driving significant efficiencies and savings across your organisation, whilst improving the experiences for global payroll teams, leaders, managers, and more importantly your people.
When selecting a new payroll vendor, what are some of the things a company should take into consideration?
The first thing to consider is what operational model do you want for your payroll team and organisation. The second would be where is your data currently and whether you can build your payroll audit in the cloud. The third is the investment cost weighed against the level of effort. Large, complex organisations don’t want to invest heavily into payroll, but there are a lot of benefits to creating a strategy that allows you to build out your payroll requirements as needed.
How has your leadership style changed since the pandemic?
Honestly, I don’t think my leadership style has changed. I have high expectations of good service, I hold my teams accountable for delivering world class service, and I encourage empowerment and fun in the work that they do. If you love what you do, it doesn’t feel like work. The pandemic caused a bit of a shift in how we all interact with leaders, managers, and colleagues. I think it’s reminded us that we’re all people first and most people have had to adapt through technology to really communicate with their people. With the move to hybrid or virtual work, I would say I try to be considerate of making sure that everyone has a voice on video calls. It’s important that people are engaged and to understand how they feel, and that they feel like they’re being recognised for their hard work.
You spoke earlier about gender pay equity, but what about gender equality in the management ranks? How do more women get into leadership roles at organisations of all sizes?
While I didn’t see many female CEOs when I was growing up, a lot has changed over the last few years, and we are seeing more women become leaders. This growth is reflected in more opportunities for experience and mentorship available to women interested in pursuing careers, especially leadership roles. I think female leaders can do even more to mentor the next generation of female executives and create more equitable workplaces.
We all win when we have diversity of thought and diversity of experience, and that’s one of the things I love most about Ceridian. We have co-CEOs who are female and male. We have an amazing diverse split in management levels across the globe, and we are constantly looking at ways to create
opportunities not just based on gender, but for candidates from underrepresented backgrounds as well.
What advice would you give to young women at the start of their career?
I would say don’t be shy. If you want it, then go and get it. Get involved, ask questions, and surround yourself with the right people because anything is possible with the right team.