Payroll can (and should) benefit from a customer service mindset!

Global Payroll Control Framework
In these LinkedIn posts I highlight parts of the Global Payroll Control Framework (GPCF) on a bi-weekly basis. The creation of a GPCF is a best practice method to help ensure compliance with internal policies and international payroll regulations. The GPCF is independent of industry and geographical spread and adapts to ever-changing control environments. Get started with your own and sign-up for this two-part webinar in cooperation with the Global Payroll Management Institute (GPMI).

Customer Service and Payroll you say?
Yes, each in-house payroll team also has customers: our colleagues we ensure paying timely and accurately each month. Next to customers, stakeholders can also be identified. Internal stakeholders, such as HR, Accounting, FP&A, Treasury, Tax and external stakeholders such as tax authorities, pension providers and of course your payroll providers. It's important to identify your (key) customers and stakeholders and understand what they expect from the payroll team. How do their timelines tap into yours, what response times to questions do they find acceptable and in what language do they desire to communicate .

You can for instance get a hold of this information thru an initial customer survey and internal stakeholder survey. Use the survey results to analyse how their expectations are aligned with your daily practice and timelines agreed upon with your payroll provider(s) in the Service Level Agreement(s). For external stakeholders, it's mainly focused on meeting timelines and data delivery requirements.

How you then align your service definition depends on, among others,  your payroll environment and Global Payroll Objectives, IT-Tools made available and the unique skill set of your team members. You should also define the primary language: will you use English as default and a more formal wording, or will you for instance use the local language and a more informal language. Make sure to adapt your style with the organizational culture and policies to have the best fit. Following parts of this post will focus on customers and internal stakeholders, as for external stakeholders it's less relevant.

Manage expectations and focus on delivery
You can really formalize the way you handle questions and use a ticketing system, or you can inform customers (and stakeholders) they can either phone or e-mail you whenever they have questions. Whatever method you use, this three layer process a great start.

1. Response
I have found out both customers and internal stakeholders already find it very helpful to understand you've read and seen their question. Do this preferably on a same-day reply basis when e-mailing. By confirming this they already feel heard and you have the possibility to review if you have all information you need to answer. Also, you can already identify if this really is a payroll related questions or if it's an HR related question - often not clear to customers and internal stakeholders.

The response activity is a Tier 1 activity. Your team member can then also assess if (s)he has the appropriate level to answer the question or if the payroll providers' expertise is required. This might be difficult for them to assess at first, but they usually get used to it pretty quickly.

2. Answer
If the question cannot be answered immediately, ensure the customer or internal stakeholder is kept up-to-date. Imagine if you send a question yourself and suddenly, after 2 weeks receive an answer or non-answer. You get a bit frustrated by being left in the dark and could even end-up forwarding your question via e-mail after a few days when you sent it. This means your payroll team's e-mail box(es) will pile up causing unwanted inefficiencies. When answering, always make sure you keep record of the answer as it could pop-up unexpected in a much later stage (think of severance cases).

Ideally, the answer is given within 2 business days counted from the day after the question is received taken time-zones into account. I have also found that the longer you wait with answering a question, the more difficult it becomes to answer and the less internal sponsorship your payroll team will receive.

3. Escalation
In the event an answer cannot be given in time, let the escalation process start. This could mean the next level manager is contacted and a new answer timeline is sent to the customer or stakeholder. Ensure they are kept up-to-date of the progress made and ultimately answer the question.

Make sure at least all customers and internal stakeholders are aware of your payroll question handling timelines. This will manage their expectations and will save misunderstanding or even improve your relationship with them. You can for instance publish them on your intranet page and communicate this while on-boarding. 

If you are in doubt how to arrange this yourself or feel it will cost too much time: I can say from own experience it's worthwhile. It will save you time in the end, because less questions means more time vane be spent on for instance continuous improvement, procedures and compliance. In addition, just go back to how you feel when your question remains outstanding and you are not updated frequently. Will you remain calm and will you be an internal sponsor of that department? Other way around, think of those departments that are always timely in answering: you will sponsor them and say 'now that's a department that has their act together'. Why not Payroll?

Identifying stakeholders and customers is part of Control Environment, Section 2: Global Payroll Control Components of the GPCF. How you communicate with them and what kind of response times they can expect, is part of Information & Communication, Section 2: Global Payroll Control Components of the GPCF.