According to a recent survey carried out by Ceridian, it was identified that 43% of participating companies do not have any succession planning in place. In any industry or role type, this would be a concern but particularly in Payroll, such a core operational function.
Succession planning in payroll refers to the process of preparing for the replacement of key employees in an organisation, specifically in the payroll department. The goal is to ensure a smooth and seamless transition of responsibilities, maintain business continuity and minimise any potential disruption to payroll operations.
Here are some steps organisations can take to develop a successful succession plan in payroll:
- Identify critical positions: Evaluate the current operations within the payroll department and identify which positions are critical to the functioning of the department and the organization as a whole. These positions are the priority in the succession planning process.
- Evaluate current talent: Assess the current employees and determine who has the potential to fill critical positions in the future. This will help organizations in developing a roadmap for employee development and training.
- Audit existing systems and processes: Complete an audit of the existing processes and systems in place to identify any potential challenges or opportunities for automation.
- Determine how you can reduce your risk: After identifying the risks your business faces which will tie in with point 3 think about how you might reduce those risks. Develop strategies to reduce potential impacts, and plan now for emergency response actions.Plan for business continuity and make critical operations stronger and safer by building resilience into your payroll plan by taking steps such as:-Backing up payroll by saving all important files as you work-Preparing for internet issues or connection problems by having the required notes saved down locally to your PC.-Make contingency plans, such as: What is the most critical aspect of my payroll run for the week and is there a way I can access this information if something goes wrong with access, laptop, unforeseen personal issues
- Prepare a training and development plan. It is important and necessary to train employees to gain new skill and knowledge but is there enough experience and senior staff members to teach this knowledge? If not, why is there a lack of this? Do these staff members have the time to teach junior employees? Again, if not why do these staff not have the time? Is there too much reliance on certain members of staff? This can often be an issue where a few members of the team have a vast experience of knowledge and due to them being too busy or unable to dedicate time to junior members this knowledge is lost if the staff leave or are out of the office unexpectedly
- Nurture a culture of mentorship: This then ties in with everything I have outlined above. Are there ways to make senior staff eager to pass on this knowledge to junior members? Are there questions and plans junior members can have ready for senior staff when they are shadowing to make the process more interactive as senior staff can often find trying to teach what they have learned can be repetitive to various staff members if they are not engaged and not asking questions.
- Regularly review and update the plan: Succession planning is an ongoing process. Regularly reviewing and updating the plan will ensure that it remains relevant and up-to-date. You can do this by setting up test scenarios where things do go wrong in a test environment and to then go through each point of your plan to make sure it works as expected. Making a plan and reviewing and updating is necessary but until it is tested in a real life scenario it won’t be known if it works or not and it is best to find out any potential problems in a practice environment to work on any required solutions. What gets measured, gets managed.
In conclusion, succession planning in payroll is crucial for organisations to ensure the continued success and stability of their payroll operations. By taking a proactive approach to identifying and developing talent, organisations can ensure a smooth transition of responsibilities and maintain business continuity.