A payroll transformation manager leads the payroll transformation process by auditing the current payroll process and creating an actionable improvement plan.
Rapid global expansion can impair payroll processes for many businesses, leading to the creation of new roles and opportunities focused largely on payroll transformation. According to the 2021 EY Global Payroll Survey, 33% of organizations still don’t have an established payroll strategy. In order to create a successful payroll strategy and transform your existing payroll processes, it’s important to consider hiring a payroll transformation manager.
Why do businesses need a payroll transformation manager?
Before we dive into everything a payroll transformation manager role entails, let’s set the stage for why this role is so impactful. The remote-first work culture has enabled companies to hire without borders, propelling many organizations into hypergrowth mode. But with this growth also comes the realization that the status quo might not be working for current business systems or processes.
As the holes in these processes become more evident, companies will need to repair them instead of merely patching them up—and payroll is often one of the processes most impacted by global growth.
As your business expands, your payroll process can become impaired due to:
- Lapses where payroll stops being handled by software and relies on manual intervention (cue spreadsheets)
- Manual payroll processing leading to security issues (i.e. sensitive payroll data getting passed along chains of custody that exposes confidential employee information to people who shouldn’t be seeing it)
- Utilizing a one-size-fits-all approach by trying to use payroll processes designed for one country in another country where different pay practices and data exist
- Outgrowing your current managed payroll provider or human capital management (HCM) services— or not utilizing their services in the best way possible for your business
What does a payroll transformation manager do?
Now, let’s get into the details of a payroll transformation manager’s day to day. The roles and responsibilities of a payroll transformation manager vary depending on title and company, but they have many similarities. The number of open roles is on the rise as more companies see a true need for someone solely dedicated to:
- Identifying payroll pain points
- Integrating the various systems involved in payroll delivery
- Supervising dispersed and disharmonized payroll units with different processes
Payroll transformation managers define the future state of payroll technologies and processes, as well as manage the relationship with partners, whether they’re a managed payroll provider or human capital management (HCM) provider. This role plays an integral part in project management and centralizing payroll processes, in addition to implementing best-in-class vendor solutions. In the first 90-180 days, a payroll transformation manager would be tasked with evaluating current payroll processes, conducting interviews with payroll owners and stakeholders to discover pain points, and auditing the ecosystem that currently supports payroll to determine if they—or the way they’re being used—are the source of the problem. Once completed, the payroll transformation manager will be able to formulate an actionable plan to improve the company’s payroll process.
The next step in improving the payroll process will include interviewing new payroll vendors to weigh the benefits and challenges of each vendor. In some cases, companies may already have a payroll partner in mind that the payroll transformation manager will be tasked with implementing. In addition to defining the future state of the company’s payroll process, a payroll transformation manager may be tasked with:
- Assessing and re-engineering end-to-end processes, including controls and audit requirements
- Providing training and coaching to direct reports
- Implementing standards, quality measures and KPIs while managing vendors and/or implementation partners
- Aligning stakeholders by developing meaningful relationships across the organization
How do you become a payroll transformation manager?
To become a successful payroll transformation manager, it’s helpful to have soft skills that indicate leadership, collaboration, organization, critical thinking and problem solving. If you have experience spearheading an initiative, successfully launching it, and aligning stakeholders to ensure everyone is on board with your initiative, then you would be a great fit as a payroll transformation manager.
You’ll also need experience with project management, knowledge of various payroll systems and solutions, and a degree or previous experience working in the payroll sector (bonus points if you have previous experience doing payroll implementation).
Most current openings call for around seven to 10+ years of experience in payroll and workforce management, experience leading a team, and expertise with common payroll solutions. Many current payroll transformation managers and directors come from a background in program management or project management, or as service delivery managers for shared payroll service centers.
Related: The DNA of a payroll professional
Achieve business growth with efficient payroll processing
Whether you have assessed that your payroll process needs improvement currently or you're planning further business growth and know that the status quo won’t work for you much longer, a payroll transformation manager is certainly a hire to consider. The business case for payroll transformation is practically undeniable as global payroll is a business-critical function that is vital to your business reputation and employee morale. A payroll transformation can lead to time and money savings, payroll transparency, employee satisfaction, and better access to global payroll data.
A dedicated payroll transformation manager can help you find the right global payroll provider—or utilize the right services by the one you already have in place, allowing your business to access and pay talent beyond borders.