Attraction and retention of talent
Talent and labor shortages are another external factor putting immense pressure on payroll, and HR, at organizations worldwide. Multiple data points over the past year show that employers globally are facing the biggest talent shortages in years, leading to what many are calling “The Great Resignation.” This creates challenges for the Payroll function and has significant implications for wider HR strategy, including:
Identifying and recruiting talent for the Payroll function. It’s common for Payroll function employees to be in these roles for multiple years. Departures take with them significant institutional knowledge and are more difficult to replace.
Many global markets and sectors continue wrestling with the effects of acute talent shortages. This goes for the Payroll function as well. Organizations should consider adding the Payroll function to rotational opportunities to grow an internal pipeline of talent.
Based on the strategic placement of Payroll within the organization (i.e., reporting to the HR or Finance functions), it’s important to develop upskilling and reskilling programs which support a seamless transition for employees moving into payroll from other functions.
The Great Resignation
This global shift of talent places enormous pressure on payroll to process a higher volume of transactions between terminations and new hires. If Payroll is already shorthanded, this increased volume can negatively impact Payroll. In addition, the consequences of talent shifts are felt within the Payroll function itself.
The attraction and retention of talent has always been an issue for Payroll, but this is being felt more acutely now – with the pandemic and other labor market trends creating greater challenges for organizations being able to secure the talent they need. Our survey shows that the number one HR priority for the following year is the attraction and retention of talent.