HR.com Study Reveals Lack of Strategic Focus in Organizational Payroll Functions

A recent study conducted by HR.com's HR Research Institute reveals that many organizations are falling short in implementing strategic payroll functions. The research report, titled 'HR.com's Future of Payroll: New Trends 2024,' indicates that only 16% of surveyed human resources (HR) professionals consider their organization's payroll function to be highly strategic.

The study, which aimed to understand current trends in payroll, changing regulations, new technologies, and evolving payroll offerings, highlights several areas where HR departments need to focus their efforts. Key challenges identified in the report include paying competitively in today's market, keeping pace with economic trends, staying abreast of evolving payroll legislation, and addressing employees' financial stress.

Despite these challenges, the report also indicates that organizations are performing well in certain aspects of payroll management. A significant majority of respondents (87%) report excellence in complying with laws and regulations. Additionally, 63% of organizations excel in adjusting pay for work in different geographies, while 60% are successful in enhancing the employee payroll experience.

Debbie McGrath, Chief Instigator and CEO of HR.com, emphasizes the critical need for organizations to adopt an intentional strategy in their payroll function. She states, 'A progressive modern approach that evolves with the times and technology will be the only way to ensure compliance and to maintain employee engagement, productivity, and business success going forward.'

The findings of this study are particularly relevant for HR professionals and business leaders as they navigate the complexities of modern payroll management. With rapidly changing economic conditions, evolving regulations, and increasing employee expectations, organizations that fail to adopt a strategic approach to payroll may find themselves at a competitive disadvantage.

The report underscores the importance of leveraging technology and staying informed about legislative changes to improve payroll operations. As organizations continue to grapple with issues such as remote work, global workforce management, and employee financial wellness, a strategic payroll function becomes increasingly crucial.

HR professionals can access the full report, HR.com's Future of Payroll: New Trends 2024, which provides actionable strategies and key takeaways to help understand and adapt to current trends in payroll management. Additionally, a recorded presentation titled A Look at Payroll Trends and Strategies in 2024 and Beyond is available for on-demand viewing, offering further insights into the future of payroll.

As organizations strive to maintain compliance, enhance employee satisfaction, and optimize their payroll processes, the findings of this study serve as a valuable resource for HR professionals and business leaders. By adopting a more strategic approach to payroll, companies can better position themselves to meet the challenges of an ever-evolving business landscape while ensuring the financial well-being and engagement of their workforce.