The efficiency of payroll and HR depends on overall ‘urbanization’

HR needs to review its processes and organization and work to ensure its agility and performance

In a context of major changes affecting businesses, HR departments are currently facing important challenges of transformation, that will require them to strategically increase their role to meet the expectations of top management and improve operational performance of their activities. Top management is now recognizing that HR has a key role to play in a company’s transformation. Management is asking HR departments to implement and drive new organizations, improve efficiency and performance of HR processes, advise on and anticipate changes and resources that will be required, and manage changes within a company on the human, social, cultural and managerial levels. HR thus faces many challenges and must also continue to ensure compliance of administrative management and payroll.

To meet these new challenges and help companies meet their strategic objectives, HR must change and reorganize by making the most of advantages provided by digital technology and take inspiration from US methods geared more towards talent management.

Focusing on Talent Management to develop agility

Such change and reorganizing is important because in France, and Europe in general, personnel administration and payroll are still a major part of HR in terms of tasks and personnel. Over a quarter of employees are involved in these areas (training and recruiting are only second). As a comparison, English-speaking companies tend to focus more on recruitment, talent management and social relations in order to encourage their employees to concentrate on high-value HR tasks. These companies outsource personnel administration and payroll, which are considered essential for the overall performance of an HR department. French companies are beginning to follow this trend and are increasingly outsourcing administrative tasks to optimize their other tasks, such as talent management and long term performance.

Think ‘Employee centric’

Technological advances today allow us to use digital technology in a number of activities, either in the front office with employees and managers or in the back office and manage data more efficiently to optimize HR activities focusing on employees.

All HR processes need to be reviewed so that HR personnel can focus on more important tasks and implement an ‘employee-centric’ approach. The ‘silo mentality’ is beginning to lose ground in HR.

Transforming the HR organization to promote new uses

A transformation of HR is necessary to meet the challenges of change. Increase in efficiency will depend upon IT solutions and tools and how these will be used based on a choice of organizations, processes, activities and skills as well as the ‘urbanization’ of solutions.

Thus, for example, an organization working in silos in HR, inadequate or poorly implemented processes, obsolete or non-automated rules, could cause problems that may only appear at the last minute during a payroll check. Special operations and tasks will be required that mobilize resources within tight payroll deadlines. The arrival of new standards and features, such as the DSN, as well as digital processes that deploy HR to employees and managers, are changing how activities are assigned and require greater precision in payroll and meeting of deadlines. To achieve this, the entire process must be involved.

To ensure optimum efficiency of IT solutions, we need to first do an audit, determine with the HR teams what already exists, make recommendations based on ‘levers’ such as organizations, processes, tools, (incorporating the possibility of digitizing certain expensive actions) and the people involved (matching tasks to skills required and ensuring security of continuity of service) and implement a realistic plan of action with ’quick win’ actions and successive stages. During this period of accelerated change, we need – now more than ever – to think before we act so we can reach the stage of transformation.