The Debate: Should payroll be part of the C-Suite?

Ryan Glancy Round 2Ryan Glancy
Senior Director, Account Development
Nick Webb CMO RoundNick Webb
Chief Marketing Officer
Oct 24, 2024
8 min read

Key takeaways

Frame 1438With different functions gaining influence, there is debate around payroll joining senior executives
Frame 1569Payroll can play a strategic role in decision-making due to its influence on costs, employee engagement, and growth
Frame 1438 1But it must overcome perceptions of being a back-office function by leveraging data to inform broader business strategies
CP241021 BLOG Should Payroll be part of the C Suite Banner v2

The Debate: Should payroll be part of the C-Suite?

Ryan Glancy Round 2Ryan Glancy – Senior Director, Account Development
Nick Webb CMO RoundNick Webb – Chief Marketing Officer
CP241021 BLOG Should Payroll be part of the C Suite Banner v2
Oct 24, 2024
8 min read

Key takeaways

Frame 1438With different functions gaining influence, there is debate around payroll joining senior executives
Frame 1569Payroll can play a strategic role in decision-making due to its influence on costs, employee engagement, and growth
Frame 1438 1But it must overcome perceptions of being a back-office function by leveraging data to inform broader business strategies

There has long been a debate about payroll becoming a more strategic function within organizations, and that debate has intensified in recent years. Technology such as CloudPay is enabling payroll professionals to gather, analyze and leverage data, not only to transform payroll, but also to support important decisions being made throughout businesses.

HR has already shown the way forward in this endeavor. Chief Human Resources Officer (CHRO) roles are among the fastest-growing in businesses globally, while both marketing and sales also have increased influence at the top table. However, despite the fast pace of change in business and the world of work, payroll hasn’t yet been given the same treatment.

This blog outlines the debate around payroll joining the senior executives at the top, and what may need to change to make it a realistic and practical possibility. Putting the case for payroll being ready for the C-suite is Ryan Glancy, CloudPay’s Senior Director, Account Development; meanwhile CloudPay’s CMO, Nick Webb, makes the case for changes being made first.

Ryan’s view: The case for adding payroll to the C-suite now

Should Payroll be part of the C Suite Banner Ryan Glancy
Should Payroll be part of the C Suite Banner Ryan Glancy

“Just as the world of work has changed, so has the role of payroll. Payroll is commonly seen as sitting between HR and Finance, and so often falls through the gaps when it comes to high-level decision-making. But payroll is the biggest expense in any company’s operations, so if you’re serious about understanding and optimizing your outgoings, giving that function an elevated seat makes sense.


I think that the depth of data involved in modern payroll, and the importance of smooth payroll processes in the era of hybrid and flexible work, means that payroll is now simply too important for the C-suite to ignore. And this is far from the only reason why payroll has to be brought to the table:

  • Evolution of HR and finance: as HR and finance have both gained a wider remit, encompassing areas like employee benefits and workforce displacement, staff in those departments may think that their responsibilities will naturally overlap into payroll. However, HR and finance staff often don’t have the bandwidth or expertise to delve into this data and discuss it, which is where payroll can take the lead.

  • Critical decision-making: payroll executives are vital for making the right decisions in the context of their organization’s short and long-term future. Payroll can shape a wide range of areas, such as global expansion, hiring tactics, labor costs, ESG considerations such as gender pay gap reporting, workforce trends, and many more. Having a payroll practitioner at the heart of this conversation, especially one empowered by metrics and technology, is crucial from reputational and financial risk perspectives.

  • Cost optimization: payroll is the biggest expense in any company’s operations, so having a payroll voice among top executives can make a real difference in both understanding and optimizing outgoings. This can include cost savings, efficiencies, empowering growth plans, how and where to hire talent, what incentives to offer, where to open new offices, how to safeguard reputation and compliance, and maintaining employee satisfaction.

  • Employee engagement and retention: KPMG has found that almost half of employees will start looking for a new job after as few as two errors with their paychecks. This demonstrates the importance of the highest levels of accuracy and consistency in payroll, in order to attract and retain top talent. A payroll-based chief executive officer can drive those high standards, and ensure any potential barriers are understood and dealt with.

With payroll fully embedded within the C-suite, its value can be taken even further, to the point of supporting decisions around mergers and acquisitions. Payroll data can help understand the ramifications of the acquiring target, and any concerns across compliance, complexity, employee retention, costs and pay rates. This can be invaluable for informing what are major business decisions. Similarly, payroll data and analysis can also support detailed gender pay gap reporting, which is a top priority for all large businesses, but can sometimes get overlooked by busy finance and HR staff who don’t have sufficient data and resources to report accurately.

It will require a seismic shift. A lot of leadership teams probably don’t yet understand why they need a payroll person on the C-suite. But ultimately, organizations need a payroll executive to look at the data and make the right decisions in the short, medium and long term.”


Nick’s view: Here’s what it would take…

Should Payroll be part of the C Suite Banner Nick Webb

“The question I would start by asking is “why hasn’t payroll been given a seat at the table in the boardroom already?”

In my opinion, it’s simply because in most companies payroll capabilities haven’t yet evolved to make the full contribution that they’ll be able to deliver in time. I believe that in many organizations, there is more work for payroll to do to be fully equipped, in two areas in particular:


Should Payroll be part of the C Suite Banner Nick Webb
  • Quantity and detail of data: while we at CloudPay have plenty of detailed data to hand, unfortunately, payroll teams in many organizations, even at large companies, simply don’t have the data at their disposal to inform business decisions.

  • Overcoming perceptions: a lack of data analysis leads to the continued perception that payroll is simply a back-office function, which payroll teams must work hard to overcome.

What would break down these barriers?

Payroll teams are faced with the challenge of demonstrating the depth and quality of their data and insights, so that they can move the rest of the organization away from considering payroll as a utility like electricity or water. This begins with recruiting and training the right expertise to make the most of that data, such as:

  • Analyzing payroll performance and benchmarking to inform strategic business decisions such as cash flow and budgeting with a greater degree of accuracy and confidence.
  • Uncovering areas where better hiring choices can be made, such as deciding between full-time and part-time workers, and therefore effecting meaningful positive change in wide-reaching areas.
  • Using payroll analytics to support reporting, auditing and compliance organization-wide, including in areas such as salary, deductions, and tax/social security contributions.
  • Adding insight and context to long-term growth plans and succession strategies, such as planning ahead to mitigate the effects of retirement and employee churn.

All of the above can now be done using existing payroll software, so it may seem relatively straightforward to ensure that payroll practitioners are all making use of data in the above-mentioned ways. However, that can sometimes be easier said than done. It will take time, with the right payroll platform, to train people and instil the belief in insights and analytical skillset required to fill the seat at the table effectively. With a more modern and data-driven culture encouraged amongst payroll teams, we should see key payroll practitioners driving change throughout the organization – and it’s at that point that I think payroll could be ready for the C-suite.”

In summary

Much of the issue with bringing payroll into the C-suite is down to perceptions around what it can contribute. So it’s up to payroll teams themselves to go above and beyond in demonstrating those contributions, and breaking down those barriers in the process.

Data and expertise are key to demonstrating that capability, which is where CloudPay’s global payroll solution and worldwide team of experts can play such a big part. By combining data from all territories into a single system of record, real-time global reporting and analytics can be made digestible in customizable dashboards. This then puts those vital insights into the hands of every stakeholder. Organizations already partnering with CloudPay are able to access market-leading payroll analytics that enable C-suites and leadership teams to make better strategic decisions, for the short-term and the long-term.



Find out more on how CloudPay can help make your payroll operation more strategic here,
or get in touch with us to discuss your specific circumstances.

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