Flexibility, Technology, Growth Attract Young Payroll Employees

Payroll departments looking to hire millennials or Generation Z workers should work to change perceptions around the profession and emphasize in-demand offerings such as flexibility and growth opportunities, a global payroll director said July 10.

Baby boomers are leaving the workforce rapidly and need to be replaced, said Michael Francis, CPP, director of global payroll at SBA Communications. “Retirement of experienced baby boomers will create a talent gap and brain drain in the US labor market” because their accumulated industry knowledge will leave with them, Francis said.

Francis argued that an inability to attract younger workers and transfer knowledge has “huge implications” for payroll because “it’s very compliance-driven.” He said he had been to the last “three or four” Payroll Congresses and thought the audience seemed to be getting older, but was encouraged by seeing some younger attendees this year.

Payroll should try to engage millennials and Generation Z because “we want individuals that are very adaptable, individuals that are innovative in their approach to work,” in addition to concerns such as sustainable and ethical business practices and developing future leaders, Francis said.

Francis spoke at PayrollOrg’s 2024 Virtual Congress. He emphasized that work-life balance and flexibility is “not a fad, it really is the reality of what’s going on in the workforce today,” and that employers need to consider it.

Flexibility is a “key factor in employment choices and decisions” and is increasingly seen as a right, not a benefit, Francis said, citing it as highly placed motivation for younger workers. He characterized work from home in particular as an option to “alleviate some of the pressures of life and be able to focus on the work when it’s time to focus on the work,” instead of the view managers may have of remote workers that “if I don’t see them, they’re not doing something.”

Francis mentioned technology and AI as other selling points to younger workers. “Most of the bigger payroll systems that are out there now have AI incorporated into them,” he said, adding that he prefers to think of AI as “augmented intelligence” because of its uses to augment work.

He encouraged those in the audience that use AI-equipped payroll systems to think about what functions might appeal to younger workers, including attendees who do not recruit often.

“I can promise you that AI is not going to take your person’s job, but people that know AI may end up taking your people’s jobs,” Francis said.

Growth Opportunities, Rebranding

“These young people are not going to work for 25 years in the same position” and want opportunities for growth and advancement, Francis said. He praised the work of organizations such as PayrollOrg to increase the visibility of the payroll profession and make “growth opportunities endless.”

Besides naming the multiple roles that he himself has held in the industry, Francis cited global payroll operations, financial wellness, and compliance as growing areas in particular.

Francis encouraged the audience to “rebrand” payroll and push back against the idea that it is a “purely transactional” job while also bridging the gap between what younger generations expect and what the payroll profession offers.

“This thing is much bigger than a paycheck showing up in Michael Francis’s account every two weeks,” he said. “How does the money that comes out of my account get to where it needs to be?”

Francis emphasized payroll’s role in the employee experience by providing accurate paychecks that are on time. “Without those two things, you may have a disgruntled workforce,” he said. He also reiterated that payroll is an important part of governments’ ability to provide services, because payroll taxes are a major source of tax revenue.

Finally, Francis suggested working with other areas of the company to come up with ideas to convince leadership of the need for changes such as flexibility. “Find areas that have the same issues that you have,” he said. “If two of you go in together with the same story, chances are you can make a change.”