Finance leaders in UK manufacturing businesses are facing a number of challenges: staff retention, shortage of lending, currency volatility, fears over the sustainability of supply chains and downward pressure on prices.
Holding onto staff is especially tough right now. Despite this, one in five UK manufacturing workers claim they are often paid incorrectly. To help relieve the skill drain, accurate and on-time pay goes a long way. After all, 63% of workers admit salary is their number one reason for having a job in the first place.
Six in 10 UK manufacturers say increased energy costs are now business-threatening. Manufacturers can offset the current price hikes by saving money, time and effort in other areas. With more than 22% estimating their payroll teams are spending over 30 hours per week reconciling data between payroll and HR systems, automating data entry and reconciliation – and outsourcing payroll completely – can help reduce these needless overhead costs.
Access to accurate time and attendance, wage and productivity data are all critical to the decision making of manufacturers operating in multiple locations. Yet, 74% are running numerous systems across multiple geographies. Available data across geographies can ensure a manufacturer can gain insights into where company needs to hire and whether onshoring or reshoring is the right decision.
When modern payroll integrates with time and attendance systems, it will help alleviate many of the challenges felt by manufacturers today and make an instant impact to the bottom line. One such company that has benefited from the switch is the market leader in the design and manufacture of wash and care solutions, ISTOBAL.
“Modern payroll can make an instant impact to the bottom line.”
ISTOBAL case study
ISTOBAL is a multinational manufacturing company with more than 500 employees that is obliged to comply with EU Directive 2014/95/EU. Creating the associated report used to be a complicated process, as each of the company’s subsidiaries was using a different local payroll provider. ISTOBAL, therefore, needed a global solution to help simplify the process.
Company turned to ADP for help. “ADP offers global managed payroll services by combining best-in-class partner network, technology and service,” explained Begoña de Torres, HR Manager, ISTOBAL.
“Its solutions allow us to automate processes, reduce the administrative workload and cut back on using Excel files to manage processes. Thanks to ADP, we can make better decisions, guarantee that information is transparent, standardise data more easily, and improve our response times to internal and external (audit) regulation changes.”
ADP has had a positive impact across the business:
- At a central level: the complete availability of information allows ISTOBAL to define KPIs more effectively.
- At the subsidiary level: ISTOBAL can automate and digitalise processes to reduce the volume of paper-based procedures, which reduces the administrative workload. Employees can keep an eye on data related to each of their colleagues from their first day at the company until their last, including tracking any promotions and pay rises an employee may earn, monitoring absences and managing annual leave, etc.
- At the employee level: the cloud-based system — which is mobile compatible — allows employees to access the system anywhere, on any device. At the click of a button, users can access all the information related to their payroll and other aspects of their work.
Lastly, the solution further strengthens ISTOBAL’s GDPR compliance and protects sensitive data related to payroll.
Make payroll work for you
Manufacturers have a lot to contend with right now, from supply chain issues, inflationary pressures squeezing profit margins, and difficulties recruiting and keeping staff. The key to weathering this perfect storm is transforming payroll. It’s time to make payroll work for you and turn it into a data-driven strategic business asset that cuts costs, boosts performance, productivity and profits.
To find out how ADP can streamline and automate your payroll for success, download your free guide to how payroll can drive real value for UK manufacturing businesses here.
“It’s time to make payroll a data-driven strategic business asset that cuts costs, boosts performance, productivity and profits.”
About the author
Sirsha Haldar, General Manager of the UK, Ireland & South Africa.
Haldar is responsible for all aspects of ADP’s business in the UK & Ireland including P&L, strategy, operations and leading a team of around 900 talented professionals working towards providing award-winning payroll & HR services.
