Riding market turbulence: Why CEOs should care about payroll strategy

Payroll strategy isn’t just about paying people, it’s about powering smarter business decisions, supporting your workforce, and staying resilient when the market shifts. Here’s why CEOs should care.

Economic conditions are making a strong payroll strategy more important than ever. CEOs are being challenged to transform their organisations quickly and continuously, asking tough questions about how to manage workforce spend, prioritise opportunities, and keep employees engaged – all without losing sight of long-term growth.

In this blog

Why payroll deserves your attention
A quick checklist for evaluating your payroll strategy
Conclusion and key takeaways 

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Why payroll strategy deserves your attention

From selecting a new site to determining where additional funding for recruitment will be allocated, payroll has a larger-than-expected role in business strategy. Payroll itself accounts for 50-60% of an organisation’s spend.

And yet, despite being a superior cost factor, payroll is too often seen as a one-hit button function that quietly runs in the background – until it doesn’t. And these tend to show up in inefficiencies that, according to Deloitte, can cost organisations up to 2% of total payroll spend each year. 

Payroll errors are more than just compliance costs

However, the costs that you see on the balance sheet are only the tip of the iceberg. The real damage shows up in frustrated employees, slipping productivity, and good people leaving.

For employees, getting paid correctly and on time is about more than just money – it’s about trust. In fact, in his article ‘The Growing Role Of Pay In Employee Experience and Business Performance,’ HR tech mogul Josh Bersin shares research on how employees rank compensation as a top factor in job satisfaction.

But sadly, one in four UK employees has experienced payroll errors, with 42% saying those mistakes damaged how they view their employer.

What happens then? Instead of focusing on their work, they spend hours chasing answers, taking time out of their working day to organise finances, such as loans or credit cards, and are simply not in the space to be as efficient as they could be.

Let’s not forget the days they have to take off work because they can’t afford childcare or travel to work. Or the sickness they experience from the financial stress. That represents money and reputational damage that is hard to rebuild. 

Staying steady with robust payroll infrastructure

But it’s not all doom and gloom. Research from the HR Research Institute shows that businesses with well-developed payroll strategies are four times more likely to improve employee satisfaction, boost morale, and keep their people engaged.

And in turbulent times, the Chartered Institute of Payroll Professionals found that companies with agile payroll systems were far more resilient.

Why? Because automation can make a measurable difference. Automating just 13 processes can save staff 1,866 hours annually – the equivalent of 1.5 full-time employees – reducing costs from over £140,000 (over three years) to just £30,000 per year.

All that time and money saved can be invested in more strategic initiatives that drive long-term growth.

Payroll analytics as your financial early warning system

By strategic initiatives, yes, we mean using payroll data to inform what is really happening inside your organisation and how you can reduce costs effectively.

Take overtime data, for example. At first glance, it’s just a compliance or budgeting figure. But tie your payroll data with your workforce planning, scheduling, and operational data; it becomes a clue to the wider story. Are employees working extra hours because you’re short-staffed? Or is the overtime incentive driving inefficient practices elsewhere in the business?

Payroll data helps you spot these patterns early, giving your leaders the opportunity to address root causes and forecast future workforce needs with more precision.

Supporting financial wellbeing through payroll

Being strategic with payroll also means meeting people where they are and supporting their financial wellbeing in real, practical ways that make a difference day to day. Financial stress has a direct impact on performance and productivity, as well as wellbeing. Tackling it helps build a more resilient and successful organisation.

This could be as simple as harnessing technology to make it easy for employees to get quicker answers to questions about their pay, whether it’s understanding deductions, checking overtime, or forecasting take-home pay for the month. Effective financial wellbeing tools help employees take greater control of their finances, making it easier to plan, save, budget, and access earned pay to help smooth out their costs and reduce financial stress.

Are you doing enough to support financial wellbeing? Take this test and get your score!

A quick checklist for evaluating your payroll strategy

To assess whether your payroll approach is working strategically for your organisation, consider:

• Strategic alignment: Does payroll directly support your broader business goals?

A strategic payroll setup should do more than pay people correctly. It should support everything from workforce planning to cost forecasting.

• Adaptability and responsiveness: Can your payroll swiftly handle market shifts and regulatory changes?

Changes to NI contributions, national minimum wage, and even family care leave payments, such as neonatal care, your payroll system should be agile enough to roll these changes immediately and easily.

• Data-driven decision-making: Are you making the most of your payroll data?

From spotting early signs of burnout (through rising overtime) to identifying cost-efficiency opportunities across departments, payroll analytics can offer invaluable intelligence.

Conclusion: Payroll isn’t just a function – it’s a strategy

If there’s one message to leave with, it’s this: payroll is no longer just an operational necessity. It’s a strategic advantage – one that directly impacts your organisation’s ability to stay resilient, support its people, and make informed decisions in uncertain times.

So, as you look ahead and plan for what’s next, ask yourself this: Is your payroll helping you navigate market turbulence, or quietly holding you back?

The difference could be millions in savings, stronger engagement, and a business that’s ready for whatever comes next.

Key takeaways

• Payroll is a strategic tool that supports business continuity and agility during economic uncertainty.
  
• Errors in payroll don’t just impact finances, they damage trust, morale, and retention.
  
• A robust payroll strategy improves employee experience, financial wellbeing, and overall productivity.
  
• Real-time payroll data can uncover inefficiencies, forecast workforce needs, and inform smarter business decisions.
  
• Tools like Zellis’ AI assistant, ELLA empower employees with pay clarity and flexibility, reducing stress, and improving engagement.
  
• CEOs who treat payroll as a strategic asset are better positioned to adapt, lead, and grow through uncertainty.

Take the next step in your payroll strategy

Discover how Zellis can help you turn payroll into a strategic advantage – from boosting efficiency to supporting employee wellbeing.