Debunking 3 Common Payroll Process Documentation Myths
Ah yes, the payroll process documentation… Building and maintaining the payroll documentation is one of these tasks that create immediate consensus in that:
- Everyone on the payroll team agrees someone should take care of it.
- No one on the team wants to be that someone.
Well, actually… not everyone always agrees that a documentation is necessary. Let us have a look at 3 of the more common myths about payroll documentation.
1. Time and Resource Constraints
A payroll manager frantically navigates through a pile of payroll tasks, juggling multiple deadlines and urgent requests. They glance at the payroll documentation folder on their desk but dismiss it, thinking, "I'll have to come back to updating these procedures later. There's just not enough time right now.”
Are you familiar with the mug that says: “I’m a payroll manager because freaking multitasking ninja is not an actual job title?” While there is undoubtedly some truth in it (alright, a lot of truth), immediate tasks and goals are not everything in payroll:
- Investing time and resources in documentation upfront can lead to significant time savings, reduced errors, and increased productivity in the long run.
- A good practice is to incorporate documentation tasks into project planning and resource allocation, demonstrating that documentation is a critical component of project success rather than an afterthought.
2. Documentation is Static
A payroll administrator reviews the company's outdated payroll procedure manual, frustrated by its lack of relevance. They think, "This document is so outdated and rigid. It's no wonder nobody uses it. Why bother updating it when payroll laws keep changing?"
Open the last drawer of your desk (you know, the one you can hardly open because it stacked full of the stuff you never use) and retrieve your payroll manual. Just how thick is the dust crust on it? Alternatively, look up your payroll manual on your hard drive and see when it was last opened. Was it even opened once in the last 12 months? Enough said?
It is true that many of us view documentation as rigid and inflexible, failing to see its potential to evolve and adapt alongside changing business needs. Maybe we need to rethink how we build and maintain documentation:
- Adopt agile documentation methodologies that emphasize the importance of regularly reviewing and updating documentation to reflect changes in processes or requirements.
- Invest in tools and technologies that support dynamic documentation, such as wiki platforms or collaborative document editing tools, making it easier for teams to update documentation in real-time.
3. Dependency on Tribal Knowledge
A new payroll clerk approaches a seasoned colleague for guidance on processing a complex payroll adjustment. The colleague provides verbal instructions but fails to mention crucial details. Later, the new clerk struggles to complete the task correctly, realizing the importance of having documented payroll procedures.
Now, what happens when that knowledgeable colleague leaves the company? That’s right, their knowledge goes with them. If it has not been secured in writing, then it is lost for good and has to be rebuilt.
On many teams, knowledge is often passed down through informal channels or "tribal knowledge" rather than formal documentation, which is probably a much more instinctive way of doing, but not the most reliable. Perhaps it is time to rethink knowledge sharing:
- Foster a culture of collaboration, where employees are encouraged to document their expertise and share it with others.
- Implement strategies to capture and formalize tribal knowledge, such as conducting knowledge transfer sessions, creating documentation templates, or establishing mentorship programs.
So, let's bust the myths, embrace documentation as our friend, and make our payroll processes smoother than ever!