Hrmaster Hats Series

Hat 9- The Payroll Professional as the moral compass

The litmus test

Moral duty

It often starts with a small decision. We agree to something that falls within a “grey” area, legally or ethically. Decisions that may be marginally legal, but are in principle, unethical. Then it is easier to choose the decision with least resistance. And before we know it, we have “crossed the line”, and it is too late to turn around and change the course of events.
To compound matters, we might become silent accomplices, if we don’t speak up and challenge management on these types of decisions. The Payroll professional cannot stay quiet on moral and ethical matters. Our position as moral compass, and trusted professional, is at stake.

Crossing that line

Once the line has been crossed, it is very difficult to rebuild our purity and reputation.
Please note; I am not referring to obvious, and blatant fraud, or other illegal actions. I mean those decisions that evoke the faintest feeling of unease or unhappiness inside us. It is these issues (categorized as grey areas) that demand of us an ethical assessment of the situation.Your opinion matters

This way we can know what the right decision ought to be. It is here that the Payroll professional’s job comes to the fore. We are called to provide up-front ethical leadership. To serve as a litmus test on borderline, grey areas.

Legally right, or morally right

A decision that is legal, is not necessarily morally right. For the Payroll professional, this is often the most demanding aspect of decision-making. Sometimes the easiest option is not the right option. And decisions like these cannot be ignored. Here we as Payroll professionals are required to stand firm, knowing that while the decision being considered might be legal, it is not morally right at all. Here we are obligated to listen to our conscience and apply the “litmus” test to help with the decision.

An example: different salaries, same position.
An excellent example that comes to mind involves discriminatory remuneration practices. Salaries for employees doing the same job often varies. Despite both employees performing the exact same set of tasks and having the same job description. They produce the same (or similar) sets of results, ….yet they earn vastly different salaries!

Example — different salaries, same position?

Ethical LegalAn excellent example that comes to mind involves discriminatory remuneration practices. Salaries for employees occupying the same job role oftentimes varies. Yet, both employees are performing the exact-same set of tasks and job descriptions. They produce the same (or very similar) sets of results, …yet they earn vastly different salaries!

In this case, although this may not be an illegal practice (based on the breach of some or other labour law). However, it certainly does constitute a morally reprehensible practice (based on the simple argument of moral ethics). This, and many other examples, are the kinds of questions that all Payroll administrators would do well to regularly ponder on and/or raise with their superiors.

 

The primary, overriding question

What ought we, the payroll professional, to be doing about this?

Here are some suggestions:

  • Gather all relevant data to support your argument towards making a morally astute decision.
  • Seek to engage with your line manager in a private meeting. Do not openly dispute the merits of the issue or contest the decision with an audience.
  • By carefully explaining the underlying rationale and showing the reasons you think a particular issue is morally and/or ethically challenging, you can calmly state your case.
  • Be ready to clearly present an alternative, suitable solution that you believe to be the right decision.
  • Expect, with positive intention, to receive a revised final outcome that (fairly) takes your positive contribution into account.

Payroll professionals the litmus test

Remember that in Speak out ethicallythese types of situations, management is well within its right to insist upon only that which is legal as the basis for decisions. The job, however, of all proud Payroll professionals, is to be the moral compass, pointing management in the right ethical direction. To make our voices heard, calmy and rationally.

Therefore, the Payroll professional is the litmus test representing the values of an organisation. We are called to be brave and ethical, speaking out when necessary. Building on our reputation as the moral compass.

Coming next…Hat 10: Why the Payroll Department should be appreciated

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

Payroll Professionals: the capstone human resource in an organisation

 

Do you desire to be known as the ultimate payroll professional?

Do you wish to be the ultimate ‘go to’ person in the payroll department? Similarly, do you dream of being that ‘one particular person’ within your organisation, that is truly indispensable to the running of the business?

This is possible and it ought to be an achievable reality too.

Payroll professionals need to boldly step up to the plate. The payroll professional is an essential component within the smooth-running operations of most enterprises. Long gone are the days where the payroll clerk merely occupies desk-space, punching numbers (whilst apologising for getting in the way of the other business functions).

The time has arrived for the payroll professional to be recognised! All too often, in the past, the payroll clerk was only ever noticed when mistakes were made. But not anymore! The payroll professional is the much-needed capstone human resource within many types of organisations.

3 building-blocks: relevance, indispensability & being pro-active

The primary building-blocks of any payroll department comprises its relevance, its indispensability and its ability to be pro-active when business challenges arise. Without these building-blocks, the modern payroll department will not survive the contemporary era of automation and process-driven payroll operations.

Relevance

In everything you do—as a proud payroll professional—strive always to make your contribution relevant. Be sure to have accurate, correct facts and figures at your fingertips. Be ready to highlight the relevant challenges being faced (and how to possibly address these challenges):

  • Alert management to increasing overtime spends, particularly if it is leaning towards becoming a trend.
  • Raise an early white flag when you sense that labour-turnover rates are starting to look problematic.
  • Sound the alarm bells when new legislation stands to impact an organisation and its employees.

In order to make a relevant contribution, line-management oftentimes inadvertently forgets that the payroll department requires a wealth of rich meaningful information. The payroll professional should never have to repeatedly beg for information from other departments within the organisation. To be relevant, you need information — make sure you get the relevant information, on time, all the time.

Indispensability (your absolute necessity) to the organisation

Work towards gaining a thorough personal understanding of the human resource production line, right from the very beginning through ‘til the very end — from preliminary planning phases, to recruitment processes, …right through ‘til possible termination phase. This fosters and entrenches your indispensability to the organisation.

Importantly, don’t settle for only knowing how to operate your payroll software, but strive to master your use and understanding thereof. Once you’ve mastered this, you naturally become the central resource (information-hub) which others will feel drawn towards. For example, make it your primary speciality to know exactly how to set up a new employee record, …how to create an interview appointment, …or, how to issue the query for that complex management report.

Remember this: the line-management function prefers to manage. Intricacies and details of the payroll system is not their forté or interest — it’s yours, the payroll professional. Make sure that your indispensability comes from your special expertise.

Be Pro-active

The ability to be a pro-active payroll professional takes nothing more than a little well-considered thought and the ability to think ahead (i.e. planning).

Some common-sense examples include, the setting up of regular (and ad-hoc) meetings, …provide feedback on changes, …‘walk the floor” and/or engage others via e-mail, …start your own departmental Facebook Page, …use instant messaging to communicate with your employees (nowadays a standard built-in function with many payroll software packages).

Pro-actively build relationships with your various customers. Be sure they know what you expect from them. Remind them of what you consider to be your definition of outstanding service delivered to them.

Pro-active payroll professionals:

  • Expect to see the consequences of today’s actions, materialising sometime in the near or distant future.
  • Are expected to prepare management reports before being asked to prepare them (an automated feature which payroll software is easily able to do).
  • have forward-looking, forward-thinking minds, particularly when it comes to planning for public holidays and unexpected work stoppages.
  • Always think about next month (and next year) while processing the current payroll.
  • Are always anticipating the unexpected to happen — if the unexpected does indeed happen, it’s bound to be at the worst time. The pro-active payroll professional knows this.
  • Always double-checks their outputs/work — …“always reconcile and balance” is their trusted motto.

The payroll professional truly is (and always ought to be) the capstone human resource within the organisation.

 

Bottom line: The payroll professional actively works towards wanting everybody in the organisation to confidently say, “To be sure, let’s ask our payroll professionals first”.