What does a good payroll manager look like? Someone who is strong in both numbers and people skills. Being adept at both is not always easy, and companies often look for someone who is good with data. But a good payroll manager needs to communicate and collaborate with many different people and layers of the company’s organization, especially with payroll administrators, to ensure that payroll accounting procedures are accurate.
Here are some more competencies to look for:
- A marriage of precision with strategic oversight to balance finances with the nuances of human resources.
- Curiosity to explore and stay current with the latest digital tools.
- Experience with cloud-based payroll solutions, data encryption and integration of payroll with other HR software.
- Knowledge of compensation laws and data protection regulations as well as compliance regulations that include government filing deadlines, tax laws and employment regulations.
- Knowledge of the company to forecast expenses, create budgets, conduct cost-benefit analyses and identify opportunities for payroll-related savings, as well as to compile summaries of company earnings and payroll taxes and deductions, personnel leave, disability payments, and nontaxable wages paid.
- Flexibility to adapt to the changing dynamics of workforce management.
- Skill to generate and present reports for review by the CFO and other executives.
- Ability to solve problems and spot errors quickly so that major disruptions in payroll and payroll audits are avoided.
- Leadership to communicate goals to the payroll team and how to achieve them; to delegate and review work; to provide training and coaching; to identify any areas of improvement within the payroll process; to implement new systems; and to ensure that benefits and payroll are delivered using best practices.
- Empathy to understand employees’ concerns regarding compensation and benefits as well as to ensure a positive and transparent payroll experience.
- Time management smarts.
On top of these capabilities, a good payroll manager should have the tenacity to keep the payroll wheels turning, keep calm under stress, maintain professionalism, be reliable, foster a culture of improvement both in the payroll department and in the company, be methodical, and be personally accountable.
There’s more
A payroll manager who is eager to learn how to manage payroll in multiple countries, which means overseeing an international team of payroll specialists who understand local and international taxation laws and concepts, would be an asset to any company seeking to have a global workforce. Someone who can keep track of global payroll operations, while effectively coordinating and managing different payroll vendors involved in a multi-country payroll, will be essential.
With the rise of cyber threats, a payroll manager who understands cybersecurity best practices is no longer optional; sensitive payroll information must be protected for the company’s benefit and for employees’ confidence.
Additionally, cross-functional communication skills are an asset, as payroll managers should be able to integrate various departmental needs into payroll operations, and, similarly, to adjust payroll to meet departmental changes.
All payroll managers should keep data confidential and have a high degree of responsibility and self-motivation. Many jobs ask for attention to detail; for payroll managers, being detail oriented is of utmost importance. Such a wide range of qualifications speaks to the challenging work environment of payroll.