It is time for payroll to take a seat at the table. This message was at the core of the free webinar “Unlock the Power of Strategic Payroll,” sponsored by Strada (formerly Alight’s Payroll & Professional Services business).
Assembled from Strada’s exclusive research, hosts Amber Hassid, Vice President of Global Payroll Solutions, and Gemma George, MCIPPdip, Global Payroll Solutions Architect at Strada, offered tactics that enable payroll professionals to gain strategic, decision-making roles within their organizations.
One key to this strategy is getting the C-suite to acknowledge the power and potential of the payroll department, something both hosts acknowledged could be an uphill battle.
According to Strada’s survey of the payroll industry, only 57% of respondents reported that their organization had a payroll strategy, with 47% of processes reportedly still done manually despite the proliferation of artificial intelligence (AI) in payroll systems. Hassid suspects those numbers overreport how prepared the industry is for the future of payroll.
“I would say, based on my daily conversation,” said Hassid, “about 60 to 70% of the organizations that I speak to do not have a strategy that suits the entire organization.”
Thankfully, the potential is there for payroll to flourish as a strategic partner; Organizations simply must be taught how to tap into it. Strada’s research indicates that the barrier to the implementation of more effective payroll strategies is not budget (only 11% of respondents reporting that as the problem) but rather a perceived lack of internal skills (49%) and data compatibility (54%). By conquering these issues, payroll has a more strategic ability to drive tangible business value.
A lack of clarity in payroll ownership—of its roles and needs—results in payroll being underutilized. A clear payroll strategy begins with defining who owns it, what functionality is required, and how to integrate the existing processes.
“Where do you sit in the organization?” George asked. “Do you sit under HR? Do you sit under finance? Do you sit as your own entity, which I think is probably the hope and wish of payroll … [We] truly do have the power to input into the strategic decisions of the business. We’ve got the data. We’ve got the power to really be the driving force for a lot of change.”
Hassid and George led the audience through practical tips and strategies to become that force for change. They tackled payroll’s lack of strategic involvement, limited integration with other business functions, and its perception as a cost center. They highlighted opportunities and key strategies for transformation, such as leveraging technology and automation, fostering a strategic mindset, and aligning payroll with organizational goals to build credibility and influence, change the narrative, and enable payroll professionals to take their seat at the table.
The key to success awaits in the webinar “Unlock the Power of Strategic Payroll,” available on demand, for free until 31 August 2025. Register today!