{"id":989,"date":"2021-03-01T17:35:28","date_gmt":"2021-03-01T17:35:28","guid":{"rendered":"http:\/\/rethink-quarterly.local\/?p=989"},"modified":"2024-09-03T22:25:10","modified_gmt":"2024-09-03T21:25:10","slug":"how-to-fix-7-payroll-problems-pandemic","status":"publish","type":"post","link":"https:\/\/rethinkq.adp.com\/how-to-fix-7-payroll-problems-pandemic\/","title":{"rendered":"How to fix 7 payroll problems exacerbated by the pandemic"},"content":{"rendered":"\n<header class=\"entry-header bg-adp-tan block--article-header alignfull block--article-header\" >\n\n  \n\n<figure class=\"wp-block-image size-large entry--image\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-1024x683.jpeg\" alt=\"\" class=\"wp-image-740\" srcset=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-1024x683.jpeg 1024w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-300x200.jpeg 300w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-768x512.jpeg 768w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-1536x1024.jpeg 1536w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash-375x250.jpeg 375w, https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/volkan-olmez-aG-pvyMsbis-unsplash.jpeg 1800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Volkan Olmez\/<a href=\"https:\/\/unsplash.com\/?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group entry--title-wrapper\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><div class=\"entry--social-share\">\n  <ul>\n    <li><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/rethinkq.adp.com\/how-to-fix-7-payroll-problems-pandemic\/&#038;t=How to fix 7 payroll problems exacerbated by the pandemic\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/themes\/rethink-quarterly\/img\/facebook.svg\" alt=\"Facebook logo - 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Business continuity plans are outdated.<\/h2>\n\n\n\n<p>Before Covid-19, your organization\u2019s business continuity plans (BCP) might have been scoped out for an isolated outage of a day or two \u2014&nbsp;not an ongoing, global event. Some companies scrambled to set up VPN access, take-home laptops and sufficient bandwidth for their associates.<\/p>\n\n\n\n<p>\u201cPeople without a BCP really struggled in the first half of 2020. Many didn\u2019t even think that payroll could be done remotely,\u201d Rousayne said. \u201cBut the good news is that payroll organizations have done it.\u201d&nbsp;<\/p>\n\n\n\n<p><strong>The solution<\/strong>: Business continuity plans should be expanded to cover many scenarios, with stakeholders evaluating those plans on a regular basis. If you have multiple payroll vendors, you should understand all of their BCPs as well.&nbsp;<\/p>\n\n\n\n<p>\u201cIf you have 50 different vendors, trying to manage that from a governance perspective can be really complex and tedious,\u201d Myers said, making the argument for a single global payroll vendor.&nbsp;<\/p>\n\n\n\n<p>Global payroll process owners need to evaluate the business continuity plans for payroll processing and distribution, and tax filings and payments. Schedule an annual test of the business continuity plan \u2014&nbsp;ideally companywide, so you can ensure that remote working really works.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. There\u2019s no global payroll strategy.&nbsp;<\/h2>\n\n\n\n<p>It\u2019s more difficult to make decisions quickly if there\u2019s no global payroll strategy \u2014&nbsp;and less than half of companies have one. Organizations with complex structures, multiple vendors and undocumented processes struggled to take action in the face of the pandemic. \u201cCompanies that didn\u2019t have someone who fully owned payroll were faced with confusion,\u201d Rousayne said.&nbsp;<\/p>\n\n\n\n<p><strong>The solution<\/strong>: The organization should have one global owner for payroll and workforce management to lead decision making and long-term planning. Having clear reporting lines help quickly disseminate important information.<\/p>\n\n\n\n<p>If you can, streamline and standardize processes so that payroll is executed with the same quality globally. Storing all employee attendance data in a centralized location and reducing the number of payroll vendors will help decrease complexity.&nbsp;<\/p>\n\n\n\n<p>\u201cIf another location is picking up payroll processing, you have to remain in alignment with local data privacy rules, such as GDPR in Europe or the new local requirements in Russia, Brazil or South Korea,\u201d Myers said.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. You haven\u2019t yet embraced automation.&nbsp;<\/h2>\n\n\n\n<p>Companies still relying on paper-based processes had a harder time switching to completely remote work. \u201cFiguring out how to get checks delivered to associates when they were usually distributed in the office was a very real situation for some clients,\u201d Myers said.<\/p>\n\n\n\n<p><strong>The solution<\/strong>: Determine where in your organization you can transform manual processes into automated ones. In your road map, consider all of the potential from available technologies, such as process automation, chatbots and optical character recognition. A mobile-based self-service portal lets employees manage their schedules and time-off requests.&nbsp;<\/p>\n\n\n\n<p>\u201cA client needs to standardize and streamline whenever possible to make the automation more affordable and to make the delivery process centralized and updated,\u201d Micciche said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Payroll isn\u2019t yet digital.<\/h2>\n\n\n\n<p>Organizations that mostly work in analog ways found it difficult to go digital during the pandemic. Some companies were able to have select employees work on-site to digitize mail and other essential documents, but there\u2019s a better way.<\/p>\n\n\n\n<p><strong>The solution<\/strong>: Consider how you can create workflows to digitize any paper that your department handles. Vital documents that come via mail \u2014&nbsp;such as tax forms and garnishments \u2014&nbsp;can be digitized and processed with optical character recognition services. Many local and state tax agencies will accept and return digital filings, even in developing countries. Encourage your employees to switch to electronic payments and pay stubs, where allowable, and implement global workforce management tools to replace manual time sheets.&nbsp;<\/p>\n\n\n\n<p>\u201cMachine learning and AI can detect errors and help communicate with associates,\u201d Myers said. Information should be accessible for employees so that people working remotely still have fast access to their payroll teams\u2019 knowledge.<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide\"><img decoding=\"async\" src=\"https:\/\/rethink.adp.com\/wp-content\/uploads\/2021\/02\/zoom.jpg\" alt=\"\" class=\"wp-image-1178\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">5. Responses to compliance changes are slow.<\/h2>\n\n\n\n<p>Managing local, state and national compliance for multiple countries is highly complex, and during the pandemic, many governments enacted new measures to counteract its effects. Keeping up with these changes increased workloads in a time when payroll departments were already being stressed.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cCompliance is the No. 1 topic that keeps payroll professionals up at night,\u201d Myers said. \u201cADP tracked a 340% increase in legislative communications in March and April 2020 \u2014&nbsp;900 pieces of legislation in just two months.\u201d&nbsp;<\/p>\n\n\n\n<p><strong>The solution<\/strong>: Consider how you currently disseminate information about compliance changes and document processes within your organization. Your vendors should be able to offer guidance on these changing standards and how best to test and work through the changes.&nbsp;<\/p>\n\n\n\n<p>\u201cPayroll issues can create lots of distractions when people just need to focus on their day-to-day jobs amid all of this anxiety,\u201d Micciche said.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">6. The data quality is poor.<\/h2>\n\n\n\n<p>The pandemic put a lot of demands on payroll: People wanted reports on headcount, critical functions and overtime, but most organizations struggled with timely reporting. If an organization is using many different reporting systems for payroll and HR management, it might not have been able to react as quickly as one with a global payroll data system. Unharmonized data of poor quality leads to manual processing, dragging down response times.&nbsp;<\/p>\n\n\n\n<p><strong>The solution<\/strong>: A global payroll reporting system gives you a harmonized view of your workforce with data dashboards for more expedient analysis. \u201cMake sure there\u2019s a strong connection between the human capital management (HCM) and payroll systems,\u201d Myers suggested. \u201cHaving a single system of truth ensures better data quality. Reporting is only as good as the data in the system.\u201d<\/p>\n\n\n\n<p>Predictive analytics can help you develop workplace cost and play with possible scenarios. Always make sure that the company\u2019s tools conform to local privacy regulations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">7. Processes hinge on a single person.<\/h2>\n\n\n\n<p>Some payroll teams struggled to keep up with the workload during the pandemic, and it became apparent how crucial cross-training can be. \u201cIn some locations only one person knows how to do something, and that\u2019s a huge risk factor,\u201d Micciche said<\/p>\n\n\n\n<p><strong>The solution<\/strong>: Managers should identify any single-person dependencies and cross-train employees to help ensure continuity. \u201cA lot of companies are moving processes from being local to regional and doing cross-training at a global level,\u201d Rousayne said.&nbsp;<\/p>\n\n\n\n<p>Ongoing training for payroll staff should start with skills assessments and be customized to individuals\u2019 strengths and needs. Make sure that all of your processes are documented electronically and accessible remotely.&nbsp;&nbsp;<\/p>\n\n\n\n<p>You can watch the&nbsp;<a href=\"https:\/\/event.on24.com\/wcc\/r\/2795591\/09E2F4420890504979BABB130BA1C45C?partnerref=ReThinkpage\">webinar recording here<\/a>, and download The Hackett Group\u2019s&nbsp;<a href=\"https:\/\/www.thehackettgroup.com\/7-payroll-weaknesses-2008\/\">white paper here<\/a>.&nbsp;<\/p>\n\n\n<div class=\"block--author\">      <div class=\"block-author__inner\">\n        <div class=\"author--image\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/grace-dobush\/\"><img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/profile_Grace-298x305.jpeg\" alt=\"\" \/><\/a>\n                  <\/div>\n        <div class=\"author--info\">\n                      <a href=\"https:\/\/rethinkq.adp.com\/author\/grace-dobush\/\" class=\"author--name\">Grace Dobush<\/a>\n\n          \n          <p>Based in Berlin, Grace Dobush is the editor of the ReThink Quarterly. She has written for publications including Fortune, Wired, Handelsblatt and Quartz.<\/p>\n          <div class=\"block--author-social\"><ul class=\"author--socials\"><li><a href=\"https:\/\/twitter.com\/GraceDobushToGo\" title=\"Twitter\" target=\"_blank\"><i class=\"fab fa-twitter-square\"><\/i><\/a><\/li><li><a href=\"https:\/\/www.linkedin.com\/in\/gracedobush\/\" title=\"LinkedIn\" target=\"_blank\"><i class=\"fab fa-linkedin\"><\/i><\/a><\/li><li><a href=\"https:\/\/gracedobush.com\/\" title=\"Author Website\" target=\"_blank\"><i class=\"fas fa-globe\"><\/i><\/a><\/li><\/ul><\/div>\n        <\/div>\n      <\/div>\n       <\/div>\n\n<div class=\"block--recommended-content alignwide is-style-bg-adp-tan\"><div class=\"block-recommended-content__inner\">\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/cuneiform-tablets-secrets-mesopotamian-payroll\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2021\/09\/GXNHC0-1084x576.jpeg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">Cuneiform tablets reveal secrets of Mesopotamian payroll<\/span>\n          <p>Early payroll records were among humans\u2019 first steps toward a writing system, explains Ali H.O. Bnayan, an archaeologist and cuneiform expert from the Iraq Museum.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/payroll-during-hyperinflation\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2024\/05\/argentinanew-five-hundred-note-2DC4C8J-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">Payroll during hyperinflation<\/span>\n          <p>When a country\u2019s economy is in crisis, how can payroll keep up? Argentina offers a case study in how crucial payroll is during periods of high inflation.\n<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n\n<div class=\"block--article-pushpoint pushpoint__small\">      <div class=\"block-article-pushpoint__inner\">\n        <a href=\"https:\/\/rethinkq.adp.com\/shadow-payroll\/\">\n        <div class=\"pushpoint--image\">\n          <img decoding=\"async\" src=\"https:\/\/rethinkq.adp.com\/wp-content\/uploads\/2024\/02\/2h8n3gb-1084x576.jpg\" alt=\"\" \/>\n        <\/div>\n        <div class=\"pushpoint--info\">\n                    <span class=\"pushpoint--title\">How to run a shadow payroll for employees on international assignments<\/span>\n          <p>Ensuring compliance in both home and host countries requires careful coordination and planning.<\/p>        <\/div>\n      <\/a><\/div> <\/div>\n<\/div><\/div>\n\n\n<section class=\"wp-block-group alignfull section--sign-up has-background\" style=\"background-color:#7967ae\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center is-style-default has-white-color has-text-color has-large-font-size\"><a href=\"\/sign-up\/\">Sign up<\/a> to keep up to date with ReThink Q.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>No organization was completely prepared for a global pandemic, but companies with digitized, unified payroll departments were able to adjust more rapidly.<\/p>\n","protected":false},"author":4,"featured_media":740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[115],"tags":[65,93,44,95],"coauthors":[24],"class_list":["post-989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-leadership","tag-digitization","tag-experts","tag-payroll","tag-transformation","issue-issue-1-lifelines"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - 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