Why HR and Finance Must Both Hold Payrolls’ Hand

Sadly, one of the most frustrating things as a payroll service in Australia can be watching the hiring firm fight over who the payroll service should report to. In general, it’s a battle won by the finance department, but the facts of the matter are that both HR and finance have a vested interest in the services offered by the payroll service, and both need a hand in producing the data and receiving the results. In short, it’s not a case of either or, but one where both must be equally informed and responsible. Read on to find out more.

Why are both departments important to the payroll service team?

Remember, when you’re debating these issues with your departments, that you need to have a thorough understanding of what both departments need and want as well as catering to the needs of the service itself. Human Resources are, of course, invested in the staff of your business, recruiting, training, nurturing and engaging employees as well as seeking to make the office a safe and straightforward place in which to operate.

This makes it a department in which little is simply black and white. Circumstances change. Decisions will impact other aspects of employee relations, and in short HR is a ‘big picture’ department. Finance, on the other hand, has a stereotype as bean counters for a reason. The rules are clear at every turn, if sometimes difficult to interpret, and there’s not a lot of grey area debate. What there is is a lot of reliance on accountability and compliance. Balancing these two can be a payroll service’s worst nightmare, especially as historically these two departments do not mesh well in the office. 

Why it’s essential to create a balanced strategy.

Your payroll managers need to understand these differences and help the two departments come together and work well with each other to understand both the legislative and compliance issues as well as work well with the staff and HR demands. It is essential that these two departments sit together with the payroll service and devise a plan of action that follows the objectives of the business as well as balances their different needs. This way, it is possible for the payroll service to produce consistent, excellent service focused on the needs of the business.

Allowing a single department too much control over the payroll service, and not considering the very different needs of the other, will create an unbalanced situation in which it is impossible to even achieve consistent results, let alone a meaningful strategy for business growth.

As with everything else in life, balance and communication are the essential pieces of the puzzle when it comes to creating a co-habiting atmosphere that caters to the needs of all interested parties while maintaining a good relationship with all concerned and empowering your payroll service to run a swift, compliant and detailed payroll as you require. If you’re looking for more tips on handling payroll, especially the process of outsourcing your payroll successfully, be sure to swing past payrollserviceaustralia.com.au for other great tips and tricks. For more details you can read our article https://www.angelasbistroandbar.com/why-payroll-outsourcing-may-work-for-you/