Payroll Management Competence Framework Table of Contents 1. Introduction 3 The Payroll Profession 4 Payroll and the World of Work 5 Overall Objectives of the Payroll Management Competence Framework 6 Enabling Successful Payroll Competence Development 7 The Competence Framework Pyramid 8 Applying the CIPP Competence Framework 9 Evaluation of Payroll Management Competences 2.

Payroll Management Competence Framework Core Values and Competences o Professional Values o Business & Management Core Competences for Payroll o Personal Competences Profile 3.Payroll Management Competence Framework: Technical Payroll Expertise o Competence Framework for “Foundation” Level o Supporting the Organisation o Producing the Payroll o Operating Payroll Information Systems 4. Competence Framework for “Member – Team Leader” Level o Supporting the Organisation o Producing the Payroll o Managing Payroll Information Systems o Managing the Payroll Function o Managing the Payroll Staff 5. Competence Framework for “Member – Payroll Manager” Level o Supporting the Organisation o Producing the Payroll Managing Payroll Information Systems o Managing the Payroll Function o Managing the Payroll Staff 6.

Competence Framework for “Member – Working at Strategic Level” o Supporting the Organisation - Strategic o Producing the Payroll o Managing Payroll Information Systems o Managing the Payroll Function o Managing the Payroll Staff 7. Competence Framework for “Specialist Payroll Professional” Level o Specialising in Payroll o Specialising in HR and Payroll o Specialising in IT and Payroll o Specialising in Finance and Payroll 1. IntroductionThe Chartered Institute of Payroll Professionals supports its members and the field of workplace-based payroll learning and performance through the creation of the CIPP Payroll Management Competence Framework which will help to shape the future of the profession for the current and next generation of payroll practitioners. Payroll Management may be defined as the provision of advice, products and services to internal/external customers which ensures that accurate and timely remuneration, statutory deductions and entitlements are made in relation to the employees of an organisation.

This Competence Framework will enable payroll professionals to provide their organisations with an even higher level of value and service. It defines the profession in the context of learning and performance, takes into account the technological and business trends which influence the profession, and seeks to balance the business objectives of the payroll function with the development needs of those delivering effective payroll services. The Payroll Profession The Chartered Institute of Payroll Professionals promotes professionalism in payroll for the benefit of all stakeholders in the payroll process.Any valid profession is identifiable by certain characteristics including: • Expertise in a particular intellectual skill, acquired by education and training; • Acceptance of obligations to society as a whole, government, employers, “customers” within one’s own company, or external to the company; • Definition and application of a common competence framework, code of professional ethics and technical standards; • An objective and accountable approach to all services provided; • Delivery of services to the highest possible standards of conduct and performance.

The specialised knowledge and skills, as well as the training and experience required to be effective payroll professionals, are not generally understood or valued within the market. The “output” of payroll professionals (paying the right people the right amount at the right time) is, however, very much valued. It is, therefore, essential in the interests of all stakeholders, and primarily of CIPP members themselves, that the standards of performance expected of members should be clearly stated in a Competence Framework and that they are understood by all concerned.Payroll and the World of Work Payroll is central to many activities in business and working life. The integrity of the payroll function, in its widest sense, is essential if business and government is to operate properly.

That integrity is largely in the hands of the payroll profession. The payroll profession’s public includes taxpayers, direct “outsourced” clients, employers, employees, local and national government, and those within the business and public sector communities who rely on the independence and integrity of payroll information for: Supporting transparent remuneration policies and practice; • Ensuring cost efficient and financially effective use of human resources; • Demonstrating sound internal financial control within organisations; • Supporting confidence in the application of the UK tax system; • Assisting in sound management decision-making by ensuring the availability of timely and accurate data. • Demonstrating accountability for all aspects of the delivery of payroll management. The need to maintain appropriate remuneration services for all those served y payroll professionals, imposes a responsibility on the payroll profession and gives the payroll professional an important role and position in the economy.

CIPP Members can remain in this privileged position of continuing to provide employees and outsourced clients with their unique services and being held in high regard, only if they can demonstrate that their services are provided to high levels of performance, in accordance with ethical, technical and professional standards designed to maintain public confidence, and that the payroll profession will always act in the “client” interest and not in its own.Overall Objectives of the CIPP Payroll Management Competence Framework The CIPP Competence Framework recognises that the objectives of the payroll profession are to: • Work to high standards of professionalism, attain high levels of performance and generally to meet the individual and corporate client interest requirements set out above; • Promote confidence in the skills and abilities of CIPP-qualified payroll professionals; • Operate policies and practices that are at the leading edge of professional payroll best practice; Increase the reputation of CIPP as an organisation that is committed to the learning and development of its members; • Develop CIPP members into new positions acknowledging the technology-facilitated movement away from transactional payroll technical/professional roles into wider benefits management. These objectives require CIPP members to meet three basic needs: • Maintain their professional competence; • Enhance existing knowledge and skills; and • Develop new technical and management knowledge and skills relevant to their career.To achieve this stepped approach from acquiring to maintaining, and then enhancing/developing new competences, an authoritative payroll performance “pathway” agreed by payroll practitioners, employers and academic partners was considered necessary. Accordingly, during 2006, the Institute undertook an extensive consultation exercise and developed the first “CIPP Payroll Management Competence Framework”.

Enabling Successful Payroll Competence DevelopmentThe CIPP Payroll Management Competence Framework was created using a pragmatic combined role-focused and data-driven approach, validated by consultation with CIPP members, external organisations and academic bodies. The competences include skills, knowledge, and behaviours required for people to succeed as payroll professionals. The Competence Framework is based on a model encompassing three layers of capability and is shown in the pyramid graphic below: • Core Values and Competences • Professional Payroll Expertise • Key Roles in the ProfessionCore Values and Competences are those needed regardless of an individual payroll practitioner’s area of expertise or role. The Competence Framework model distinguishes between three sets of values and competences: CIPP Professional Values; Business & Management Core Competences; and Personal Competences. Professional Payroll Expertise is the second tier of the model and comprises specific technical and professional areas required for success across various jobs in the workplace.

These areas of expertise are specialised areas which build and rely on the core values and competences.The Competence Framework model shows 5 key areas professional payroll expertise: • Managing the Payroll Function • Producing the Payroll • Managing Payroll Staff • Managing Payroll Information Systems • Supporting the Organisation Key Roles in the Profession is the third tier of the Competence Framework model. Roles are not the same as job titles, and can best be defined as the broad areas of responsibility within the payroll profession which require a select group of core values and competences (bottom tier), and a select group of areas of expertise (second tier) to deliver successfully.There are three key roles defined by CIPP in the Payroll Profession: • The CIPP “Foundation” Member (includes Trainees/Junior Administrators) • The CIPP Member (includes Team Leaders, Payroll Managers, and those with Strategic responsibilities in Payroll, such as Payroll Directors) • The CIPP Specialist Member (includes Payroll Specialists, Payroll & Finance Specialists, Payroll & IT Specialists, Payroll & HR Specialists, etc) The Competence Framework PyramidApplying the CIPP Competence Framework Continuing Professional Development is the key to effective and sustained performance in payroll management. The CIPP Payroll Management Competence Framework provides and important and useful tool to guide workplace-based certification of individual development by defining what knowledge and skills are needed to deliver effective performance for employers and progress in a career in payroll aligned to business objectives.

The Framework provides a common development language and roadmap for payroll practitioners. At organisational level, the CIPP Payroll Management Competence Framework can be used as a functional subset of a broader competence approach to performance management, and provide clarity of payroll responsibilities, and eventual definition of differentiated accountabilities, between the often overlapping areas of activity of Payroll, HR and Finance.The Framework also serves as the basis for the CIPP Knowledge and Skills Matrix diagnostic tool which will enable benchmarking of professional development standards in Payroll, and enable organisations to apply for the “CIPP Payroll Quality Partnership” kitemark (awarded to companies applying best practice in payroll professional development). Qualifications and training in Payroll in the UK can now base curriculum and output value metrics on the authoritative benchmark provided by the CIPP Payroll Management Evaluation of Payroll Management CompetencesCompetences can be evaluated using a variety of methods: • Active and reported observation by payroll team colleagues; • Assessment of CPD documented evidence; • Payroll customer feedback; • Questioning and dialogue between payroll practitioner and manager at performance/development reviews. 2.

Payroll Management Competence Framework: Core Values and Competences As noted in the pyramid graphic above, the Competence Framework is composed of two key sections of competences: Core Values and Competences; and Core Technical Payroll Expertise.These Core Values and Competences are further divided into Professional Values; Business & Management Competences, and Personal Competences. Professional Values These are the entry-level professional values, behaviors’ and attitudes for anyone aspiring to be a Payroll practitioner. Integrity Demonstrated Behaviours |Demonstrates professionalism and integrity in all activities and works in the best interests|Ensures that payroll advice delivered is technically sound and relevant to customer needs | |of the internal/external customer and the Payroll profession.

Has high personal standards | | |Acts with honesty and integrity | | |Is polite, reliable and responsive in interacting with others | | |Respects confidentiality | | Creates trust and confidence | Analytical Thinking & Initiative Demonstrated Behaviours Displays analytical thinking and initiative in ensuring appropriate and sustainable payroll |Adopts a logical, coherent and consistent approach to problem solving | |solutions |Understands the alternative implications of different issues and courses of action | | |Recommends solutions supported by facts | | |Makes decisions on a rational and timely basis | | |Challenges assumptions and probes detail | | |Pre-empts problems by securing necessary resources/advice | . Teamwork & Co-OperationDemonstrated Behaviours |Interacts and empathises effectively with others to achieve envisaged results. Understands the different roles necessary in a payroll team and adopts appropriate role | | |Proactively identifies and uses the strengths, skills, expertise and ideas of others to add | | |value | | |Solicits input from colleagues and customers and shows appreciation of value of others’ | | |contribution | Achievement Drive Demonstrated Behaviours Demonstrates resilience, drive and commitment to results |Sets own goals and targets (in addition to allocated role) and strives to meet them | | |Persists with issue until complete solution has been delivered | | |Flexible and adaptable to changing demands and deadlines | | |Balances priorities, managing time effectively | | |Calm and rational approach under pressure | Personal Development Demonstrated Behaviours Focuses on self-development and personal growth |Recognises own development needs and opportunities | | |Pro-actively seeks opportunities to advance own development | | |Receives and acts on feedback from others to achieve personal development | | |Sets and monitors personal learning and development objectives | ResponsibilityDemonstrated Behaviours |Takes responsibility for own actions, understanding complexity of technical payroll |Assumes responsibility for actions which extend beyond the immediate area of allocated scope | |environment and the impact of specific ctions on others |Thinks through impact of payroll actions on all stakeholders | | |Works effectively in situations which hold uncertainties and possible conflicts of interest | Business & Management Core Competences for Payroll • Customer Orientation • Commercial Awareness • Results Delivery Each Business & Management Competence is defined at levels of performance: development, proficient, expert. Development - Building experience to develop a full portfolio of knowledge, skills, tools and techniques required to operate at “proficient” level in payroll administration Proficient - Demonstrates the core level of knowledge, skills, tools and techniques required to operate without supervision Expert - Recognised as having substantial specialist knowledge and experience in the application of this competence