Browse
Log in / Register
Share
The COVID-19 pandemic forced a rapid and permanent transformation of employer payroll operations, accelerating the adoption of remote work, digital tools, and a renewed focus on diversity, equity, and inclusion (DEI) in hiring. Based on insights from industry leaders, the core mandate was clear: payroll must continue uninterrupted, even during a global crisis.
When offices shut down in March 2020, payroll teams faced an immediate challenge: processing paychecks from dispersed home offices. Lois Fried, CPP, President of the American Payroll Association, noted that some organizations were unprepared, leading to extreme measures like a payroll manager temporarily moving company servers to her home. The primary objective, according to Davida Lara, CPP, Executive Vice President for Payroll at Entertainment Partners, was unwavering: “Payroll needed to stay the same. During a crisis it’s more important that people get paid than it’s ever been.”
This swift pivot required more than just logistical changes. A critical focus was maintaining data security protocols to protect employee information in a decentralized environment. Lara emphasized that security, especially around compliance and privacy laws, was a top priority for ensuring a safe and trustworthy remote operation.
The crisis acted as a catalyst for innovation that is likely to persist. The expanded use of technology was "incredible," according to Lara. This shift also improved working relationships. Fried observed that remote work led to more interaction with employees and customers, spurring creativity in delivering programs virtually and ensuring payroll professionals had a stronger voice at the C-suite level—the senior executive level of a company.
Another significant change was the move towards electronic, no-touch pay delivery, which addressed health concerns. Furthermore, tools like On-Demand Pay (Earned Wage Access), which allows employees to access earned wages before the standard payday, gained prominence. Fried highlighted the benefit of giving employees control over their finances, helping them manage unexpected expenses and encouraging better financial habits.
When recruiting payroll talent, technical skills and attention to detail remain essential. However, the most critical attribute is now passion. Lara stated, “If you don’t have a passion for understanding what the impact of those payments means to an individual, then you won’t be successful in this space.” This human-centric approach is paramount.
More broadly, the social movements of 2020 compelled organizations to rethink their hiring policies fundamentally. Fried urged companies to reflect on their practices to ensure they are accountable for fostering a diverse and inclusive community. Lara stressed that diversity cannot be a trend but must be embedded into the core of an organization, including creating training programs to provide skills and opportunities for underrepresented groups.
The lasting legacy of the pandemic on payroll is a more agile, technologically advanced, and human-focused function. Companies that embrace these changes—prioritizing seamless payment operations, employee financial wellness, and authentic diversity in hiring—will be better positioned for the future.
