Demand for payroll specialists
Payroll is a niche area of finance recruitment and is currently in a period of change as new systems and procedures are implemented. Consequently, payroll specialists are in continuous demand, but some employers still find it hard to source the right candidates.
Why the shortage?
According to Kat McCarthy, senior consultant with Hays Accountancy & Finance’s payroll division in Leeds, high-quality payroll managers are currently in short supply. This is primarily due to the current trend of new payroll and HR systems being implemented - these systems demand more IT-orientated payroll managers, or even IT specialists such as SAP implementers.
"Some payroll managers looking for work have been in the same job for a long time and have little or no experience of change," explains Kat McCarthy. ‘These professionals often enter the market because they’ve been made redundant from traditional payroll departments that have been passed to payroll bureau organisations which adhere to all payroll needs.
"The payroll bureau organisations tend to require more IT-compliant individuals, so a number of candidates may feel that they are unable to manage this amount of technical change in a new role and hence find it hard to find work that suit their skills set."
IT and system implementation skills are consequently essential and knowledge of ADP, SAP, SSP and SMP are all beneficial. Many employers will consider candidates with less experience for new roles as they can be easier to train - in fact, those familiar with previous or different systems knowledge may actually find the transition harder.
Employers are increasingly requesting that candidates are CIPD or IPPM qualified so that they can better manage HR and payroll together. However, candidates with both a CIPD qualification and payroll experience are very rare. Professionals with extensive payroll experience and good transferable skills could be suitable for any HR aspects of the role.
Market movements
Junior payrollers are currently in high demand mainly as a result of limited supply. Payroll professionals at the junior end naturally move on to new pastures as they gain experience - so there is a continuous demand for these positions. "Counter offers", continues Kat McCarthy, "are also fairly common in the junior payroll market, thus market forces increase their value. This, in turn, increases the cost of available payrollers and employers find that they have to offer premiums to attract and retain top talent."
At the senior end, there is a tendency for payroll managers to stay put in their jobs for the remainder of their careers. It has a knock-on effect on the market with few vacancies for senior payroll professionals – and once new positions arise, candidates are hard to source as few are looking for new opportunities.
How to be an employer of choice
A major incentive to attract the crème of payrollers is to offer good study support. Supporting and encouraging staff to study the CIPD or IPPM qualification will help employees extend their skills set – study support is also a great retention tool as staff feel valued. Generally, organisations offering support for both CIPD and IPPM are finding it easier to attract and retain payroll professionals. "Even new employees with no previous experience will need training," explains Kat McCarthy.
For senior positions, man-management and year-end procedure knowledge is essential, as well as systems implementation experience. The best way of tracking down the high-calibre candidates with these skills is via larger recruitment agencies. These can filter through the available candidates locally as well as source candidates who are willing to relocate from other parts of the country.
"Agencies can be systems specific and use their many resources in finding the right candidate," concludes Kat McCarthy. They will be aware of current and future redundancies, which will obviously be beneficial in sourcing the top candidates before they are recruited elsewhere.
Employers also need to make sure that they clearly highlight why candidates should consider their organisation - those who promote their benefits, exciting tasks and further career prospects will essentially become employers of choice among payrollers."
