Hrmaster Hats Series

Hat 10- The Interpreter of company policy

We, the payroll administrators, need to understand the policy process. Government passes legislation, and we are tasked with implementing that. Management sets company policy, and creates procedures to implement that policy.

The payroll department (among others) is tasked with bringing those policies and procedures to life. We study the rules and make them work. We explain to, and educate all employees regarding these policies. We implement the policy and make sure that the policy is adhered to.

“my heart says yes but my brain says no”

And the biggest challenge…we have to say NO to requests for exceptions.

Refusing these exceptions can cause a lot of pressure to be exerted on the administrator who understands the importance of sticking to policies. While management accepts that we can’t break the law around payroll, they sometimes think that certain circumstances allow one to bend company policy for a few individuals. Their arguments are so persuasive and they come from management, making it very difficult. But be warned, once you have bent the rules, it becomes easier to bend the rules in other situations. Have you noticed that some managers are more inclined to ask you to make exceptions than others?

I am trying to think of a example where bending the policies can be justified. I am finding it very difficult to come up with anything but here are two that may prove the point.
* We can’t give the employee more leave , but we can approve leave and process the leave outside of policy.
* We can’t change the rule on advancing an employee money from next week’s salary, but we can bend that rule, depending on the circumstances.

Tell us about the time you bent the rule, or the time you stood firm. And how did it turn out? Tell us in the comments below.

How to avoid compromising policy procedure:

  1. Make sure you understand the policy that management wants implemented. The payroll administrators are the people who interpret what needs to be done. So read it carefully, discuss it and make sure everyone in the department understands it. Make notes of what possible exceptions might be requested, and work out in advance the reasons why you can’t compromise.

  2. Make sure that you all (management team included) agree that there will be no exceptions. You need to know that your standing firm on this issue will be supported by management.
  3. Build a reputation for sticking to the rules. While you need to be considerate and aware of the issues, policy is policy, and the firmer you are, the less you will be challenged. It must be clearly understood “Payroll will never deviate from policy, so don’t even ask!”

  4. On the rare occasion, you need to make an exception, be sure that it is for a very good reason and ONLY under management’s authority. Have something in writing that allows you to deviate. (You do not want to end up being a scapegoat).
  5. Education, education, education is the key. Do everything you can to make sure line managers understand what the policy and procedures are. Use books, diagrams, videos and blogs to keep managers up to date. Make them your friends, your first line of defence and your supporters when you implement policy strictly.

Policy adherence is essential in a well-run, compliant business. And the payroll department plays a vital role in making this happen. Prepare to make a stand to always do the right thing and stick to the rules.

Hrmaster Hats Series

Hat 8- The Payroll Professional as Problem Solvers

We would like to say “Well done!” – you have often had to sacrifice much, missing out on time with friends and family, to deal with problems not of your own making.
So stand tall and proud and hear from us again “Well done!”
We are committed Payroll Professionals, and always have our client’s best interests at heart.
We stare down and deal with their challenges and problems that come in all shapes and sizes.

Problems come in all shapes and sizes

Some problems creep up on you in the middle of the month: this allows you to lean back in your chair and reflect on the problem. You have time to formulate an ideal solution, based on extensive consultation with all the stakeholders. I love these problems, but sadly, they are exceptionally rare – only coming around about once a year ( a bit like Santa).

UsWe have a problemually, the problems that I deal with are the “Urgent! Have to be solved now!” issues. For example, when a line manager is standing right before you, explaining that he/she forgot to submit the additional hours worked, and as a result, the entire workforce is gathering outside threatening to ‘down tools’ if the company doesn’t remedy the situation – immediately! To compound the problem in this example, it also happens to have been brought to your attention just before closing time on a Friday afternoon!
Disaster. Or Opportunity!

Opportunity

Now is the time to ‘step-up’ and reveal your work ethic and integrity, by efficiently solving the problem. As Payroll Professionals, there are numerous opportunities to build your reputation by gaining the trust of the employees/clients. Find solution As a Payroll Professional, we often perform these mini-miracles. With a calm and steady approach, we confidently take charge of the situation and deliver the perfect solution. This inevitably puts a beaming smile on the faces of our clients. So hear again, “Well done!” Feel good about this!
However, these situations can also lead to actions that damage or destroy relationships. If the Payroll Professional presents solutions that are impractical, or have potentially appalling consequences which may only materialise down the line (say in 6 months’ time), then relationships are certain to be ruined, or at least very strained.

Deliberate over the best, most suitable solution

To prevent this, take time to ponder over the most appropriate solution, and to carefully deliberate over the various options.Ponder a solution Then, when you decide which is the optimal solution to this particular challenge, you ensure that the advice you give, is first-rate, the most fitting you can offer your clients. This is the Payroll Professional displaying their Problem-Solving super power at its best.

NOTE:  Always be legal. Always comply with company policy. Thereafter, within the constraints of these two parameters, you are most welcome to be creative in your problem-solving approach.

Coming next… Hat 9: The Payroll Professional as the moral compass

Hrmaster Hats Series

Hat 6- The importance of being TRUSTWORTHY!

Hat 6 — 3 Levels of Trust

When a Payroll professional joins a Payroll department, they will immediately understand – TRUST is vital and TRUST is earned! Your position in this crucial division of the company, and your access to confidential information, should make you realize how important it is that you are 100% trustworthy. However, this trust can also – quickly and easily – be broken because of one small error!

There are 3 spheres of trust in a company:

1. Management trusts the Payroll Professional

Consider this example: “Please keep this confidential”…said to the Payroll professional who has been summoned to the boardroom. Often this may mean bad news is coming. Maybe the official letter states “the company has decided to downsize, and we need you to calculate a redundancy package for Mr. X , who has been terminated with immediate effect. As a result, Mr. X wants his salary paid out immediately.”
Or maybe, there is good news on the horizon. Perhaps the organization has decided to pay a bonus, and the executive management will ask you to begin calculating facts and figures accordingly. Great news!

Employee trustThis confidential information is your opportunity, as a Payroll professional, to prove your trustworthiness. For instance, you will know to whom management has decided to award a sizeable bonus. Or maybe, who did not qualify for an increase in their salary/remuneration package. And they trust you not to disclose this information to any unauthorised person.
To put it bluntly, management trusts you, as a Payroll professional, to keep your lips sealed!

2. Employees trust the Payroll Professional

Employee trust 2As a Payroll professional, you have more information on any employee, than anyone else in the organization.
Example: 1 – A garnishee order alerts you to the fact that an employee is experiencing financial difficulties.
Example 2 – Or a divorce summons arrives at the office, and you as Payroll professional are immediately aware that an employee is undergoing personal problems. This might mean a possible change in marital status for that employee to deal with.

As a Payroll professional, you are privy to many secrets (say someone is having a baby, or they’re having an affair). Or someone might be considering a massive credit purchase, and you know because the retailer contacted your Payroll department to verify the employment and salary details of that employee.
Employees of a company expect the Payroll professional NOT to divulge their private issues, whether personal or related to their job.

3. External service providers trust the Payroll Professional

As a Payroll professional, you will be required to submit regular documents and reports to various government departments or private institutions. You have to report on taxation matters, divulge medical aid details, and even emolument (or garnishee) orders that will be deducted from an employee’s salary, and paid over to a creditor.
These institutions trust the Payroll professional to send the correct information, in the correct format,Employee trust 3 at the right time.
And remember, you as Payroll professional will often be contacted by financial institutions (such as banks and credit providers), to verify the employment and remuneration details of an employee.

In all 3 spheres mentioned above, you as Payroll professional will be trusted to be 100% truthful and honest. This develops your reputation as someone who is trustworthy!

So let me implore you to do everything in your power to retain the trust you have worked so hard to build up in your organization. One careless mistake…a word spoken out of turn…and trust will be broken in an instant!
Do everything you can to be 100% truthful and honest, so that all who deal with you can depend on you to be trustworthy. A Payroll professional who safeguards the confidential information you have access to, (and is entrusted to you), whether from management, employees or outside institutions.

Some useful tips to keep in mind:

  • Don’t be tempted to talk out of turn
  • Never divulge someone’s sensitive, private information (without their permission)
  • Never say “yes” when you know the right answer is “no”
  • Never be underhand in your words or behaviour (especially if it’s against the law, or a breach of company policy)
  • Be mindful of what you post on social media
  • Guard confidential documents carefully – don’t leave them open for prying eyes to see

As a Payroll professional, take pride in the trust your company puts in you, Trusted employeeand always act with integrity! This is an essential part of your job. Don’t let one careless mistake destroy all you have worked for. Remember, trust is EARNED, and very hard to restore once lost!

Coming next… Hat 7: The Payroll Professional as Counsellor

Hat 5 – The responsibility of “What if”

When management wants to know how changes will affect staffing costs, or staff expenses, the Payroll department is their “go-to” for these answers. We are trusted to give accurate information, so they know they can rely on our reports, projections and opinions to make decisions. Decisions which could have far-reaching consequences for the company. Therefore a great responsibility rests on us to provide accurate historical reports ( usually a print out from Payroll) or even to offer a projection. And on these management will base their decisions. This is Payroll’s chance to shine, to make their mark…and be sure to get it right!
When asked for a projection, it’s Payroll’s opportunity to be centre-stage. You may be asked to “run the numbers, maybe run 5 different scenarios, with 3 different minimum wage options. We would like to see how it all works out.” What if?

What if we introduced a pension fund…. What would it cost at 5% ,7% or 9%?

What if the government increases the minimum wage? To R 4500 or R 5000 or R5500?
Could we survive?

What if we gave everyone an extra day of leave…. what would it cost?

The payroll department are the “go-to people” to answer all the” what if” questions.
We do the forecasting and scenario planning. We take the data from the payroll and manipulate, and number crunch, before presenting management with a couple of scenarios to work with. If we are respected, we may even be asked to venture an opinion as to what we think the best option is.

 

How to live up to this responsibility

 

Make sure you have a payroll system that can extract data in a format that you can use. It is great when you can get the report in excel, and then work from there. If the payroll software can do the analysis and “what if” planning, even better.
Make sure your payroll data is up to date, and that you are working in the right month.
Make sure the software can provide you with the right base information so that you do the projections using the correct data.
Test your understanding of what is required. Stop, plan and then act.
Test the data before the “what if” analysis begins. Make sure you have taken into account all the variables.
Test the final conclusions for reasonableness.
Present the results in an easy-to-understand format. For instance, graphs work well. Perhaps consider a “bottom line” summary, then one can dig down if necessary.

 

And what to do if you are not asked…?

 

BE PROACTIVE! Analyse your Payroll, and look for trends. Look out for possible savings. Watch the news, so that you are up-to-date with new legislation. Do reports and present them to management, even before they ask.
Do a monthly analysis of what’s happening that could impact your payroll. Then include these in your monthly reports. Maybe add a small “Heads up” section.
For example, consider the changes in retirement funding in this country. How will it impact your payroll? Will you communicate to management the change in taxation? How will the payslip look now, since the provident fund contribution is no longer taxable?

There is a huge responsibility for us in these “ What if” scenarios. But also a huge opportunity to enhance the reputation of your payroll department. Grab them with both hands!

Hrmaster Hats Series

Hat 4 – Communicators of change

Th 5 effective strategies –

The payroll department is often tasked with the responsibility to communicate the changes agreed on by management and the unions regarding conditions of employment or changes to legislation, that impact employees. This usually means interpreting the changes and making them real and meaningful to all customers. (This may also include sending out the actual notices announcing the changes.)

Payroll is the only department able to explain how the changes will affect the employees’ take-home pay, or their benefits (eg. leave days or pension deductions). We have a unique opportunity to interact with the employees, and make sure there is a complete understanding of how the changes will impact each one personally. What a privilege!

Here is an example. In March 2016, changes in retirement legislation were announced in South Africa. If you were including life insurance or disability in your one tax-free deduction, this could change, and now become tax deductable. This would reduce the employee’s take-home pay. And of course, the payroll department is the first stop when explanations are needed around this.

Change

Five strategies to communicate change effectively

1. Use face-to-face meetings 

Nothing is as powerful as sitting across the table from your employees (or customers), and explaining in detail how the changes will impact them. Use a dummy payslip (and alternative if you have them) as a visual example of the changes, and their impact. And be ready, and patient, to answer questions and concerns. This way they will be prepared for their changed payslip.

2. Identify champions

One champion has the power to convert many. Identify a leader ( shop steward, supervisor, line manager or senior manager), and make sure they have a thorough understanding of the changes. They can be the first line of explainers, and answer the basic questions. A detailed and clear question-and-answer sheet will be very useful. Speak to management for advice, if necessary, to approach these leaders, or be proactive and cultivate relationships with the leaders in the company.

 3. Language and medium of communication

Important (and obvious), is the fact that home language is much more powerful for effective communication, compared to a 2nd language. Visual aids (eg. pictures) and simple explanations are always better than long, complicated and wordy descriptions. Ensure any hand-out pamphlets/documents are concise, and clear, and that the information is correct. Communicating the wrong facts is difficult to undo, and will negatively affect the organization and your reputation.

4. Honestly explain the benefits and downsides

It always pays to be 100% truthful, and convey ALL the facts, even if this might mean anger and outrage ( not your fault, you are only the conveyor of the facts). When explaining the benefits, do it in detail, and be sure NOT to oversell the upside. Be realistic. And in the same vein, don’t minimize the downsides.

5. Have an Action Plan

Make sure you have a clear action plan before starting the communication process. Decide WHO will communicate WHAT, and WHEN. Who will be available to answer questions, and when? Make sure everyone is up to date, and in the loop on what is to be implemented, and when. And what documents need to be signed, and by whom…

Change 2

Remember: this is an opportunity to grow relationships, and enhance the reputation of the payroll department. So, be available to answer all questions. And go out of your way, if possible, to personalize every answer, and explain how this will affect the employee.

Coming next… Hat 5: The responsibility of What if?

Hrmaster Hats Series

Hat 3 – The Gatekeeper of compliance

In a previous article, the importance of record keeping, and the access of these records, was unpacked. It is vital that the company employees know WHAT is stored, and WHERE. In this article, we will look at the importance of Compliance, and the fundamental impact this has on a business. Of course, understanding the company’s standards around compliance is important. They must also know what is expected of them regarding maintaining this compliance, and how they will be held accountable for their role in doing so.

compliance

The two parts of Company Compliance

Compliance is defined as “obedience to a request or command”.
To ensure maximum acceptance of the need for , and importance of, compliance, it is essential that everyone in the company knows what to comply with.

This is 2-fold:

  1. Compliance with Company Laws and Policies
  2. Compliance with Company Procedures.

To avoid being REACTIVE around issues of Compliance, it is important to educate all employees on this subject, and what is expected of them.

Be Proactive – and Stay Ahead.

By keeping your employees INFORMED and UP-TO-DATE, you increase the success of company compliance. Don’t rely on other people and departments, but take the lead, and consider this motto “ the education of your line managers and staff promotes high standards of compliance, leading to the reduction of deviation requests.”

7 Ways to educate/inform line managers and staff

1. Training sessions

Article - is payroll on international best-practiceKeep these sessions short and informative. Perhaps on a monthly basis, with ad hoc sessions to discuss changes and new developements. This should keep line managers and staff updated. If they understand the consequences of non-compliance, it will motivate them to complete all documentation accurately and timeously.

2. Booklets, Flyers and Notices

The Payroll professional should play a big role in the writing and regular revision of the company’s Policy and Procedure documents. These should be the foundation for any education around compliance. One way to create awareness is to deal with critical aspects of compliance. Infographics, which visually communicate the details around key areas of compliance in that specific workplace, is a useful tool. And example forms and screenshots are an innovative way of getting the employee’s attention around essential areas of compliance.

3. One-on-one Sessions

Chatting informally over coffee might help you understand why some staff are unwilling, or unable, to comply. In this way, you can explain the essential reasons for workplace compliance, and the consequences, for them and the company, of non-compliance. This is an opportunity to warn serial transgressors, that their continuous non-compliance could lead to disciplinary action.

4. Host a Payroll Webpage

Payroll webpageThis is an easy option. In a few minutes, a webpage can be created and hosted on a company intranet or secure server. A Payroll webpage allows employees to access information as they need it. This webpage content could include How-to videos, easy-to-read PDFs and Policy and Procedures updates.

Next week: Accurate keeper of information (we cover your butt)

5. Social Media

Nowadays, everyone has a cellphone, with access to Facebook, Twitter, Whatsapp and many other fun Social Media options. These Social Media apps are fantastic communication tools. For example, specific topics can be shared on Whatsapp groups created for this purpose. A Twitter account can aid employees with direct answers to questions. And Facebook is useful for hosting discussions, and passing on information. Educating your staff will be fun and accessable, if you make use of these options. Of course, the result of all this should be improved compliance levels in the company.

6. Monthly Newsletter

Consider publishing a monthly newsletter (or adding a section to an existing company newsletter) that discusses compliance-related topics. This will help spread the concept and details of compliance, across the company.

7. Remuneration Contracts

To foster increased compliance, it helps to manage expectations. For instance, it helps to print pro-forma payslips, to be signed by the employee, if a new set of conditions of employment is agreed on. And be sure to add an updated contract to this.

In summary

Do all you can, as a Payroll professional, to educate and inform employees around the fundamental importance of compliance with the company’s Policy and Procedures. High levels of compliance in an organisation, result in a positive impact on everyone.

Coming next… Hat 4: Communicators of Change – 5 effective strategies