The Rise of Strategic Payroll: From Back Office to Business Advantage

Payroll teams are no longer just tasked with ensuring employees are paid on time. They have the potential to become strategic partners for the organization, yet almost three out of four payroll professionals lack confidence that their organizations are doing enough to unlock the full value of their operations.

With Deel’s consolidated payroll, HR, and compliance solutions, payroll teams are provided with the tools they need to elevate their position within their organization.

In this article, we’ll explore what payroll teams can do to align their operations with business growth objectives. We’ll also follow Maria, a fictional payroll manager at a mid-sized company, to demonstrate how you can use Deel to accomplish your goals.

The evolving role of payroll teams in decision-making

As organizations grow and expand, the payroll function has evolved to encompass more than just transactional duties. Payroll teams are becoming more critical to the overall business framework, providing insights that can influence business decisions on workforce management, cost optimization, and compliance.

How Deel’s solutions empower payroll teams to add value

Deel’s comprehensive solutions are designed to help payroll teams transition from an operational role to a strategic one. By automating routine tasks and providing powerful data analytics tools, Deel enables payroll teams to focus on activities that add increased value.

Maria's Journey: Maria began to realize that her team was often sidelined in key discussions. She knew that to change this, her team needed to be seen as more than just a back-office function. Maria set out to redefine the role of her payroll team by focusing on how they could contribute to the company’s goals.

Automation of routine tasks for more time on activities

One of the key ways Deel empowers payroll teams is through the automation of routine and repetitive tasks. By eliminating manual processes, payroll professionals can reallocate their time to more prudent initiatives. 

For instance, tasks like payroll calculations, tax filings, and compliance checks can be handled by Deel’s automated systems, allowing the payroll team to focus on analyzing trends, optimizing labor costs, and advising on workforce planning.

See also: 12 Benefits of Payroll Automation With Deel

Maria's Journey: Maria quickly saw the benefits of automation. By implementing Deel’s automated payroll systems, she was able to free up her team’s time, allowing them to participate more actively in planning sessions with the executive team.

Enhanced data analytics for informed decision-making

Deel’s platform offers advanced data analytics capabilities that provide payroll teams with the insights needed to make informed decisions. Payroll data, when analyzed effectively, can reveal patterns in workforce costs, employee turnover, and productivity. 

Deel’s analytics tools allow payroll teams to transform raw data into actionable insights that can guide tactical decisions, such as where to allocate resources or how to adjust compensation strategies to retain top talent.

See also: People Analytics Strategy: How to Improve HR Decision Making

Maria's Journey: Using Deel’s data analytics, Maria’s team uncovered trends in employee turnover that they presented to HR. These insights led to a new retention strategy that reduced turnover by 15% in just six months.

Compliance management as a strategic advantage

Managing compliance is often seen as a tedious but necessary part of payroll operations. In a commissioned study conducted by Forrester Consulting on behalf of Deel (January 2024), 40% of payroll leaders reported compliance problems as a significant challenge in managing global payroll, leading to increased risks and potential penalties.

However, Deel turns compliance management into a strategic advantage. By staying ahead of regulatory changes and ensuring that payroll practices comply with local labor laws, Deel helps organizations avoid costly penalties and legal challenges. 

This proactive approach to compliance allows payroll teams to not only protect the organization from risks but also to contribute to a stable and secure business environment, which is crucial for long-term planning.

Maria's Journey: With Deel’s compliance tools, Maria was able to streamline the management of complex multi-state regulations, turning a potential headache into a strength that reassured the company’s leadership about their risk management processes.

Amplifying strategic direction delivered by payroll teams

For payroll teams looking to amplify their impact, leveraging the right tools and practices is essential. Deel’s suite of tools is designed to enhance cross-functional collaboration and improve the visibility of payroll’s contributions to business goals.

Leveraging Deel's integrations for cross-functional collaboration

Deel’s platform integrates seamlessly with HR, finance, and other business systems, allowing payroll data to flow across departments. This integration fosters cross-functional collaboration, enabling payroll teams to contribute to broader business discussions. 

For example, by integrating payroll data with HR systems, payroll teams can work closely with HR to develop compensation strategies that align with business objectives and employee retention goals.

Maria's Journey: Maria utilized Deel’s integration capabilities to collaborate more effectively with HR and finance. This cross-functional teamwork led to the development of a new compensation strategy that aligned with the company’s goals and improved employee retention.

Communication strategies to showcase payroll’s contributions to business goals

Effective communication is crucial for showcasing the value that payroll teams bring to the table. In fact, payroll operations with strong executive partnerships deliver nearly three times the value and strategic impact compared to those with weaker relationships.

Deel provides tools that help payroll teams create clear and compelling reports that highlight their contributions. By regularly sharing valuable insights and results with executives and other stakeholders, payroll teams can ensure that their contributions are recognized and valued within the organization.

Maria's Journey: To make sure her team’s contributions were recognized, Maria started using Deel’s reporting tools to create visually compelling presentations. These reports, which highlighted payroll’s impact on the company’s goals, were well-received by the executive team and led to further collaboration opportunities.

Learn more: How to Create and Share a Custom Deel HR Report

Translating payroll operations into broader business impact

Efficient payroll operations are foundational to the overall performance of an organization. When payroll processes run smoothly, they not only ensure employees are paid accurately and on time, but they also contribute to higher employee satisfaction, reduced turnover, and better financial planning. 

When payroll processes are streamlined, it can result in cost savings, ensured compliance adherence, and more informed decision-making at the executive level.

How efficient payroll processes contribute to overall organizational performance

Efficient payroll processes reduce errors, minimize compliance risks, and free up resources that can be redirected toward key initiatives. For example, a company with optimized payroll processes can better manage cash flow, allocate budgets more effectively, and avoid the financial penalties associated with non-compliance. These efficiencies contribute directly to the company’s bottom line and support long-term business growth.

Maria's Journey: Maria’s efforts to streamline payroll processes not only improved accuracy but also freed up resources that were reinvested into initiatives. Her team’s contributions directly supported the company’s overall performance by reducing costs and positively impacting employee experience.

Using Deel to align payroll operations with business objectives

Deel enables users to clearly align payroll operations with the broader business objectives of an organization. By providing real-time reporting and insights, Deel helps payroll teams translate their operations into tangible business outcomes.

Real-time reporting and insights

Deel’s platform offers real-time reporting and AI capabilities that provide business leaders with up-to-date information on payroll costs, employee headcounts, and compliance status. These insights allow leaders to make informed decisions quickly, ensuring payroll operations are always aligned with the company’s goals.

Maria's Journey: Maria leveraged Deel’s real-time reporting to provide the leadership team with up-to-date insights on payroll costs and compliance. These timely reports enabled the executives to make quick, informed decisions that aligned with the company’s objectives.

Strategic use of payroll data to influence business strategy

Payroll data is a valuable resource that can be used to shape business strategy. With Deel, payroll teams can analyze trends in labor costs, employee turnover, and regional payroll expenses to provide recommendations. 

For example, payroll data might reveal that certain regions have lower labor costs, prompting the company to consider expanding its operations in those areas. By using payroll data strategically, organizations can make decisions that enhance profitability and support sustainable growth.

Maria's Journey: By using payroll data, Maria’s team was able to recommend expanding operations to a region with lower labor costs. This recommendation was accepted by the leadership team and led to significant cost savings for the company.

Empower your payroll team with Deel

As an all-in-one solution for global hiring and payroll, Deel provides teams with everything they need to align their payroll operations with larger business objectives. This includes:

• Payroll: Run global payroll and US payroll in one platform
• Hiring: Hire and manage EOR employees, contractors, and direct employees, as well as support relocations
• Management: Manage your workforce with our HRIS and performance tools
• And more

Request a demo for a platform walk-through and Q&A with an expert.