[00:00:07] [SPEAKER_00]: Welcome everyone to another episode of HR and Payroll 2.0. I'm Pete Tiliakis, and as always,
[00:00:12] [SPEAKER_00]: I'm joined by the legendary Julie Fernandez. Welcome Julie. Thanks Pete. We got some fun
[00:00:17] [SPEAKER_00]: stuff today. Yes, yes. I'm so excited to welcome our guest this week. It is Frank Leistner,
[00:00:23] [SPEAKER_00]: the SVP of Global Payroll and Professional Services at the new Strata Global. So welcome
[00:00:28] [SPEAKER_02]: Frank. I'm so excited to have you. Yeah, excited to be here with you both, Pete and Julie.
[00:00:32] [SPEAKER_00]: Yeah, absolutely man. We go way back, all three of us. I think we've been in the industry
[00:00:37] [SPEAKER_00]: together at some point along the way. So yeah, it's nice to have you. It's like having a friend
[00:00:41] [SPEAKER_00]: on and we really appreciate it. And so look, I wanted to get started by saying congratulations.
[00:00:47] [SPEAKER_00]: I'm excited for what's going on over at Strata Global. And for those of you that don't know
[00:00:51] [SPEAKER_00]: Strata, as we've talked about on some of our past episodes, that's what we've been referring
[00:00:56] [SPEAKER_00]: to as the new company, the new divestiture from Alight. And I think some of the best parts
[00:01:02] [SPEAKER_00]: of Alight, right? The pro services, the managed services, the work they practice, the SAP practice.
[00:01:07] [SPEAKER_00]: So much excitement around that. And I love that you guys have a new home, but tell us about
[00:01:11] [SPEAKER_00]: that. What's it like? New branding, new, I guess new, but not new, right? You guys are
[00:01:17] [SPEAKER_02]: all kind of going together. Well, yeah, that's the key thing too. Yeah, no. So we're super
[00:01:21] [SPEAKER_02]: excited. You hit it. It's the best year out of Alight of our payroll and professional
[00:01:25] [SPEAKER_02]: services business, but it's got 35 years of history. We think all the way back to the BPO,
[00:01:30] [SPEAKER_02]: moved to cloud, to bringing global payroll and HCM and some of the leading technologies together.
[00:01:36] [SPEAKER_02]: So we've got 35 years of history and we're excited for a new chapter where we can have
[00:01:41] [SPEAKER_02]: the right focus with the 8,000 colleagues that we've got, 1,500 clients, all the
[00:01:47] [SPEAKER_02]: leading technologies that we can help bring together for clients. So we couldn't be more
[00:01:51] [SPEAKER_02]: excited about the new brand, the new launch, but we're also excited about continuing to do
[00:01:56] [SPEAKER_02]: what we do for clients and bringing that to the market. Yeah, no, absolutely. I think
[00:02:00] [SPEAKER_00]: there's some excellent heritage there that's going with you and I'm excited for you guys to
[00:02:06] [SPEAKER_00]: find a new home. I think maybe Alight, I think it underappreciated that capability
[00:02:12] [SPEAKER_00]: and really happy to see you guys are going to have a home that's going to really invest in
[00:02:15] [SPEAKER_00]: that. And look, you're still going to be working with Alight. I know you guys are
[00:02:17] [SPEAKER_00]: in lockstep with them on clients and deals and that sort of thing. So I know there's
[00:02:21] [SPEAKER_00]: going to still be a close partnership there. Yeah, exciting stuff. Yeah, and we had a great
[00:02:27] [SPEAKER_02]: run with Alight and I think the ability for us to split off and refocus on both the key areas
[00:02:32] [SPEAKER_02]: of our business and work together over time is going to only allow us to continue to innovate
[00:02:37] [SPEAKER_02]: faster and bring more to the clients that we work with. So excited about it. Something
[00:02:42] [SPEAKER_01]: kind of unique and that makes this smoother maybe than the average acquisition, the average
[00:02:48] [SPEAKER_01]: divestiture, the average split is the fact that there was already kind of a
[00:02:57] [SPEAKER_01]: same people going over sometimes when there's splits out there in the environment.
[00:03:02] [SPEAKER_01]: There's a little rustling of feathers and people don't know where they're going and
[00:03:06] [SPEAKER_01]: there aren't clear lines. And in this case, the business lines have been clear. And I echo
[00:03:12] [SPEAKER_01]: Pete saying this, to me the most exciting part of the business is the global bit. It's the
[00:03:17] [SPEAKER_01]: bit that has all the payroll and all the AMS and technology stuff in it. But that makes
[00:03:24] [SPEAKER_02]: smoother than the average bear for sure. Yeah, yeah, absolutely. Yeah, absolutely. I mean,
[00:03:29] [SPEAKER_02]: you know, we've got 8,000 colleagues and you hit it on the head, Julie. I think there's maybe
[00:03:35] [SPEAKER_02]: out of that there's a few hundred people, maybe 300 people whose jobs are changing. So,
[00:03:39] [SPEAKER_02]: you know, and the same leadership that's been in place for a long time. So it allows us
[00:03:42] [SPEAKER_02]: to quickly keep doing what we're doing and then create the momentum of excitement around
[00:03:47] [SPEAKER_02]: a new brand and to focus on that part of the business to quickly kind of just continue
[00:03:51] [SPEAKER_02]: what we're doing and build on it. Excited about it. Yeah, a lot of people, I think that's going to
[00:03:55] [SPEAKER_00]: be a hard part, right? Is being able to make sure you can articulate that 30 plus years,
[00:03:59] [SPEAKER_00]: right? Because we all know it goes, I mean, gosh, it goes back maybe even to the Exult days,
[00:04:03] [SPEAKER_00]: right? The NGA, the Orenso side, the Northgate side. Yeah, there was so many parts of that.
[00:04:09] [SPEAKER_02]: Yeah, yeah, yeah. It goes back to the Orenso side. Way back. Yeah, the U.S. side with
[00:04:13] [SPEAKER_02]: Exult. And then the move to the cloud with bringing on OmniPoint and then a light bringing
[00:04:19] [SPEAKER_02]: global payroll together and all that. So yeah, it's a really rich history. We couldn't be more
[00:04:24] [SPEAKER_02]: excited about it. We had some cool internal videos when we launched, you know, that'll
[00:04:27] [SPEAKER_02]: there'll be some external versions of it where it just really played into the heritage so it could
[00:04:32] [SPEAKER_02]: speak to everyone. And, you know, it's really about taking that and building on it going
[00:04:36] [SPEAKER_02]: forward in the next chapter of where each one of those things, you know, whether it was
[00:04:40] [SPEAKER_02]: different companies that came together or went public or private or spun off or got bought
[00:04:44] [SPEAKER_02]: things. But every time that asset got more valuable to clients and more set of capabilities
[00:04:50] [SPEAKER_02]: that we brought together. So we see this as the next version of that. Yeah, yeah.
[00:04:55] [SPEAKER_01]: So are there any milestones or kind of sneak peeks that, you know, we should be looking
[00:04:59] [SPEAKER_01]: for? We're pretty good about, you know, we're pretty good about seeing and trying to
[00:05:04] [SPEAKER_01]: trying to speak to them as they come up. But any places or things or timing of key
[00:05:10] [SPEAKER_01]: stuff we should be looking for where you'll be making noise?
[00:05:15] [SPEAKER_02]: Yeah, so a couple of things. So one I'd say we couldn't be more excited to keep doing
[00:05:20] [SPEAKER_02]: what we're doing. So, you know, first and foremost, you know, delivering for our
[00:05:23] [SPEAKER_02]: clients and being out in the market and innovating. And, you know, that's that's
[00:05:28] [SPEAKER_02]: the key focus for us. Same same roadmap as we have today will continue around how
[00:05:31] [SPEAKER_02]: we're expanding our partnerships, how we're continuing to build on, you know,
[00:05:35] [SPEAKER_02]: the work that we do, you know, with Workday and SAP and Oracle, the little payroll
[00:05:40] [SPEAKER_02]: answers we're doing with our engine. So same focus, same, you know, we're going to
[00:05:44] [SPEAKER_02]: continue that as job one. You'll see us show up in the same places we typically
[00:05:48] [SPEAKER_02]: show up but more. So we're making a big splash, whether it be Access Connect or
[00:05:54] [SPEAKER_02]: Rising or Cloud World or, you know, trade shows in Brazil and Mexico and
[00:05:59] [SPEAKER_02]: Europe, etc. over the course of the next couple months. So we're now we'll
[00:06:03] [SPEAKER_02]: be out in full force with the new brand, making sure folks remember, you
[00:06:07] [SPEAKER_02]: know, who we are and what we've got to offer. And, you know, in terms of a sneak peek,
[00:06:12] [SPEAKER_02]: I would say, you know, I think this might release in the next couple weeks.
[00:06:16] [SPEAKER_02]: I'd say, hey, Jack, Jack, we might have some press releases coming out
[00:06:19] [SPEAKER_02]: around that time that I'm super excited about about how we'll take our
[00:06:22] [SPEAKER_02]: existing set of services to market in a different way that I think is going
[00:06:26] [SPEAKER_02]: to add a tremendous amount of value to clients in a different way to do
[00:06:30] [SPEAKER_02]: it. So around our global payroll offering. So a little bit more to come.
[00:06:33] [SPEAKER_02]: That's maybe one sneak peek, but a lot of the same. And then we look
[00:06:37] [SPEAKER_02]: forward to, you know, talk about we can come back and we've got some other
[00:06:41] [SPEAKER_02]: announcements further down the line. Yeah, that's great to know.
[00:06:44] [SPEAKER_01]: We're only like weeks away from hitting conference season, right?
[00:06:48] [SPEAKER_01]: Oh, my heart. Oh, yeah. So so if anybody hasn't figured you out yet,
[00:06:53] [SPEAKER_01]: they're going to see they're going to see some new cool green stuff
[00:06:56] [SPEAKER_00]: going on. That's right. Yeah. Strada World Tour, Strada World Tour.
[00:07:01] [SPEAKER_00]: Well, look, I love it. So look, congratulations, Frank.
[00:07:04] [SPEAKER_00]: Congrats to you and Luke both and the whole team. Right.
[00:07:06] [SPEAKER_00]: There's a lot of work going on over there.
[00:07:08] [SPEAKER_00]: Jordana and team are doing a lot on the branding.
[00:07:10] [SPEAKER_00]: So all the best. We're going to be staying close to it, Julie.
[00:07:12] [SPEAKER_00]: I know you already are working with clients. Indeed.
[00:07:15] [SPEAKER_00]: On that side, on the buy side, I'm obviously staying close to it
[00:07:18] [SPEAKER_00]: from the analyst side. So we'll be keeping you guys
[00:07:21] [SPEAKER_00]: certainly posted on what's going on there. And maybe we'll get to
[00:07:23] [SPEAKER_00]: catch up out on the road, Frank, somewhere Workday Rising or
[00:07:26] [SPEAKER_00]: somewhere else. Hopefully I'll be there.
[00:07:29] [SPEAKER_00]: Good, man. Good. I always love it, man.
[00:07:30] [SPEAKER_00]: I always love catching up with you guys. We got to catch up
[00:07:33] [SPEAKER_00]: right around the time you guys were announcing the split at Payroll
[00:07:36] [SPEAKER_00]: so that was pretty cool, too. So speaking of, right?
[00:07:40] [SPEAKER_00]: Yeah. Speaking of, I wanted to talk about the Executive Summit
[00:07:44] [SPEAKER_00]: because you guys were there. Light actually sponsored that
[00:07:46] [SPEAKER_00]: Executive Summit at Payroll Congress. And I just wanted to
[00:07:51] [SPEAKER_00]: kind of talk on that a little bit and pick that up because
[00:07:53] [SPEAKER_00]: we've talked about it a little here, Julie and I.
[00:07:56] [SPEAKER_00]: But I think it was just really nice. I don't know.
[00:07:59] [SPEAKER_00]: I know the plan is to continue to run that.
[00:08:01] [SPEAKER_00]: I hope I'll be a part of it. I'm not sure.
[00:08:03] [SPEAKER_00]: But I really just think it's exciting that we're having,
[00:08:06] [SPEAKER_00]: I think it's a first step towards getting payroll,
[00:08:10] [SPEAKER_00]: having conversations with a senior level executive group
[00:08:15] [SPEAKER_00]: about payroll. We haven't commonly been the front of
[00:08:20] [SPEAKER_00]: the conversation. It's always been sort of an afterthought
[00:08:22] [SPEAKER_00]: and I think it's exciting. It's a huge step forward,
[00:08:24] [SPEAKER_00]: I believe for us, for payroll to be in that position
[00:08:28] [SPEAKER_00]: and actually having conversations at that level.
[00:08:31] [SPEAKER_00]: So one of the things that we found in the research
[00:08:33] [SPEAKER_00]: I recently did with the Payroll Profession Confidence Index
[00:08:35] [SPEAKER_00]: was the impact when executives are deeper engaged
[00:08:39] [SPEAKER_00]: or have better relationships with payroll
[00:08:42] [SPEAKER_00]: are significantly just very significant.
[00:08:46] [SPEAKER_00]: Right? There was, I think there was a 4X or 3X on value
[00:08:49] [SPEAKER_00]: increase. There was a better engagement in terms of
[00:08:52] [SPEAKER_00]: how payroll was being treated or viewed in the organization.
[00:08:55] [SPEAKER_00]: Just so many positive outcomes.
[00:08:57] [SPEAKER_00]: But yeah, just wanted to see what your thoughts were
[00:08:58] [SPEAKER_00]: from the day and what maybe you're hearing
[00:09:02] [SPEAKER_00]: from the organizations out there that are looking
[00:09:04] [SPEAKER_00]: at payroll now differently.
[00:09:05] [SPEAKER_02]: You know, when we heard that was going to happen
[00:09:07] [SPEAKER_02]: at the Payroll Conference, one, I personally thought
[00:09:09] [SPEAKER_02]: it was going to be a great step forward
[00:09:12] [SPEAKER_02]: and two, we're excited to sponsor it because
[00:09:14] [SPEAKER_02]: I think your point, it brings a different level
[00:09:17] [SPEAKER_02]: of discussion. I think it brings a different level
[00:09:19] [SPEAKER_02]: of focus. I think it brings the right folks together
[00:09:21] [SPEAKER_02]: to really make an impact and drive companies
[00:09:25] [SPEAKER_02]: and teams and et cetera where they need to go
[00:09:29] [SPEAKER_02]: going forward. So I was super excited about it.
[00:09:32] [SPEAKER_02]: We were even talking about it yesterday.
[00:09:34] [SPEAKER_02]: And the fact that we couldn't be, we're more excited
[00:09:37] [SPEAKER_02]: to kind of get into what that may look like next year
[00:09:40] [SPEAKER_02]: and how we can make it a richer experience
[00:09:42] [SPEAKER_02]: and bring more to the table in terms of people
[00:09:44] [SPEAKER_02]: and conversations et cetera.
[00:09:47] [SPEAKER_02]: So I think that's one I hope continues
[00:09:51] [SPEAKER_02]: and continues more than once a year.
[00:09:53] [SPEAKER_00]: Yeah. And I almost wonder if we need to start
[00:09:55] [SPEAKER_00]: hopefully getting those conversations going outside
[00:09:57] [SPEAKER_00]: of those events. Right?
[00:09:59] [SPEAKER_00]: Like I would love to see there be more of a,
[00:10:01] [SPEAKER_00]: and I don't know how you do it, right?
[00:10:03] [SPEAKER_00]: But we've got to get payroll some airtime
[00:10:06] [SPEAKER_00]: in front of executives, I think.
[00:10:08] [SPEAKER_00]: And that's going to take payroll doing that
[00:10:09] [SPEAKER_00]: somewhat for themselves, right?
[00:10:11] [SPEAKER_00]: Stepping forward and putting themselves out there.
[00:10:13] [SPEAKER_00]: But I also would love to just see
[00:10:16] [SPEAKER_00]: that awareness coming out.
[00:10:17] [SPEAKER_00]: And that's what I'm hoping my report did.
[00:10:19] [SPEAKER_00]: But Julie, what are your thoughts on that?
[00:10:21] [SPEAKER_00]: I mean, I know you were there.
[00:10:22] [SPEAKER_00]: What are you seeing?
[00:10:23] [SPEAKER_00]: I mean, do you think the expectations,
[00:10:24] [SPEAKER_00]: I know the expectations for payroll are changing
[00:10:26] [SPEAKER_00]: but do you think that the organizations
[00:10:28] [SPEAKER_00]: are realizing that yet?
[00:10:29] [SPEAKER_00]: That they should be expecting something more
[00:10:32] [SPEAKER_00]: from payroll than just processing checks?
[00:10:35] [SPEAKER_01]: You know, I think so.
[00:10:36] [SPEAKER_01]: And I think part of it is because practitioners
[00:10:38] [SPEAKER_01]: and leaders are starting to talk more about it.
[00:10:41] [SPEAKER_01]: When we first started talking about a seat at the table
[00:10:43] [SPEAKER_01]: or how strategic payroll can and should be
[00:10:46] [SPEAKER_01]: in an organization, there weren't a lot of voices
[00:10:49] [SPEAKER_01]: that were highlighting that.
[00:10:51] [SPEAKER_01]: And it feels like they're starting to now
[00:10:54] [SPEAKER_01]: kind of come out and be heard a little bit more.
[00:10:57] [SPEAKER_01]: And so first of all, just that awareness
[00:10:59] [SPEAKER_01]: of people thinking I am in a strategic place.
[00:11:03] [SPEAKER_01]: My role is strategic.
[00:11:05] [SPEAKER_01]: My navigating my career from this jumping point
[00:11:08] [SPEAKER_01]: is strategic.
[00:11:10] [SPEAKER_01]: And so that has changed in the last even just year
[00:11:13] [SPEAKER_01]: or two, I would say.
[00:11:15] [SPEAKER_01]: I really enjoyed having a role in that event.
[00:11:18] [SPEAKER_01]: And I would also hope to be able to continue that
[00:11:22] [SPEAKER_01]: because I do think it's a great form.
[00:11:24] [SPEAKER_01]: It's been overdue.
[00:11:24] [SPEAKER_01]: It was well received, I understand, from payroll org.
[00:11:28] [SPEAKER_01]: You know, they got some just some really great feedback
[00:11:31] [SPEAKER_01]: from folks about the conversations
[00:11:34] [SPEAKER_01]: that were being had there and the interaction.
[00:11:36] [SPEAKER_01]: And so, you know, it's been overdue
[00:11:38] [SPEAKER_01]: and I think it's starting to pick up
[00:11:40] [SPEAKER_01]: a little bit of momentum around the world.
[00:11:42] [SPEAKER_01]: That's the crazy thing for payroll.
[00:11:43] [SPEAKER_01]: You know, sometimes it has to be,
[00:11:45] [SPEAKER_01]: it's not just a local or US thing.
[00:11:47] [SPEAKER_01]: It really starts to come down
[00:11:49] [SPEAKER_01]: to some of the global aspects of that as well.
[00:11:51] [SPEAKER_01]: And when you're, I mean,
[00:11:53] [SPEAKER_01]: you can't coordinate that easily
[00:11:54] [SPEAKER_01]: and make that happen unless it's organic.
[00:11:57] [SPEAKER_00]: You're right.
[00:11:57] [SPEAKER_00]: You're right.
[00:11:57] [SPEAKER_00]: I wonder, I've been kind of talking about
[00:11:59] [SPEAKER_00]: like the competitive advantage that payroll can,
[00:12:01] [SPEAKER_00]: or at least exploring it, right?
[00:12:03] [SPEAKER_00]: And I'm not entirely sure
[00:12:04] [SPEAKER_00]: it can be a direct competitive advantage,
[00:12:06] [SPEAKER_00]: but I definitely know it can be a disadvantage
[00:12:08] [SPEAKER_00]: when you're executing on things.
[00:12:10] [SPEAKER_00]: But what are your thoughts on that, Frank?
[00:12:11] [SPEAKER_00]: I mean, do you think payroll,
[00:12:13] [SPEAKER_00]: do you think payroll,
[00:12:14] [SPEAKER_00]: it can be a competitive advantage
[00:12:15] [SPEAKER_00]: or certainly a disadvantage,
[00:12:17] [SPEAKER_00]: but do you think it could be an advantage in some way?
[00:12:19] [SPEAKER_02]: Yeah, absolutely.
[00:12:21] [SPEAKER_02]: I mean, I think, you know,
[00:12:22] [SPEAKER_02]: you're saying you've highlighted
[00:12:23] [SPEAKER_02]: so many different interesting things.
[00:12:24] [SPEAKER_02]: And I think we talked about there,
[00:12:25] [SPEAKER_02]: but I think, you know,
[00:12:26] [SPEAKER_02]: this concept of our executives
[00:12:29] [SPEAKER_02]: aware of some of the changes.
[00:12:30] [SPEAKER_02]: Like they're aware when things go wrong.
[00:12:32] [SPEAKER_02]: They're definitely aware when things need to happen
[00:12:35] [SPEAKER_02]: within the organization
[00:12:36] [SPEAKER_02]: and they can't do them as readily
[00:12:38] [SPEAKER_02]: or easily as they hope.
[00:12:40] [SPEAKER_02]: And I think, you know,
[00:12:41] [SPEAKER_02]: you're starting to see more organizations be proactive
[00:12:45] [SPEAKER_02]: in that nature these types of conversations
[00:12:46] [SPEAKER_02]: can allow companies to be more proactive.
[00:12:49] [SPEAKER_02]: And I think that's the key, right?
[00:12:52] [SPEAKER_02]: We see a small slice of that,
[00:12:54] [SPEAKER_02]: but that's what needs to increase
[00:12:55] [SPEAKER_02]: is the proactive conversations around
[00:12:57] [SPEAKER_02]: how it sits within the organization,
[00:13:00] [SPEAKER_02]: how CFOs, CHOs,
[00:13:01] [SPEAKER_02]: and even more importantly,
[00:13:02] [SPEAKER_02]: all the different partnerships you talked about,
[00:13:04] [SPEAKER_02]: but IT coming together to enable it
[00:13:07] [SPEAKER_02]: to allow the company strategy to move forward.
[00:13:09] [SPEAKER_02]: So those are the things that need to happen more.
[00:13:11] [SPEAKER_02]: I think these types of conversations
[00:13:12] [SPEAKER_02]: can allow that to be realized
[00:13:14] [SPEAKER_02]: before something goes wrong
[00:13:15] [SPEAKER_02]: or something happens that you need to figure it out.
[00:13:18] [SPEAKER_01]: Who owns it has been one of the longest open questions
[00:13:21] [SPEAKER_01]: on the planet, right?
[00:13:22] [SPEAKER_01]: There's finance involved,
[00:13:23] [SPEAKER_01]: there's shared services,
[00:13:24] [SPEAKER_01]: there's HR.
[00:13:26] [SPEAKER_01]: And well, you know,
[00:13:27] [SPEAKER_01]: I think that's an interesting question.
[00:13:31] [SPEAKER_01]: How strategic it is
[00:13:32] [SPEAKER_01]: and where it fits in the picture oftentimes
[00:13:34] [SPEAKER_01]: is it depends a little bit
[00:13:37] [SPEAKER_01]: on who is guiding transformation
[00:13:39] [SPEAKER_01]: and what their point of view is
[00:13:41] [SPEAKER_01]: and what their perspective is.
[00:13:43] [SPEAKER_01]: So I love, you know,
[00:13:44] [SPEAKER_01]: the combination of HR technology transformation
[00:13:48] [SPEAKER_01]: and the role that these big HCM,
[00:13:50] [SPEAKER_01]: you know, initiatives are playing.
[00:13:52] [SPEAKER_01]: It doesn't usually put payroll in the driver's seat.
[00:13:55] [SPEAKER_01]: And so whether it's included or not
[00:13:57] [SPEAKER_01]: or how you then use that as a lever
[00:14:00] [SPEAKER_01]: to get to a more strategic
[00:14:02] [SPEAKER_01]: or harmonized payroll solution,
[00:14:05] [SPEAKER_01]: you know, may or may not be priority one,
[00:14:07] [SPEAKER_01]: but you know,
[00:14:08] [SPEAKER_01]: these things just take on a different life
[00:14:10] [SPEAKER_01]: depending on who's driving
[00:14:12] [SPEAKER_01]: what part of a transformation.
[00:14:15] [SPEAKER_01]: And payroll is in the limelight or it's not
[00:14:17] [SPEAKER_01]: and it waits its turn
[00:14:18] [SPEAKER_01]: or it's just a really critical part
[00:14:20] [SPEAKER_01]: of a transformation that has broader objectives.
[00:14:24] [SPEAKER_00]: Yeah, totally.
[00:14:25] [SPEAKER_00]: Totally.
[00:14:26] [SPEAKER_00]: Yeah, you know,
[00:14:26] [SPEAKER_00]: I think one of the things I've been positioning
[00:14:28] [SPEAKER_00]: when I talk to executives about payroll
[00:14:30] [SPEAKER_00]: is the speed and agility
[00:14:31] [SPEAKER_00]: that you're lacking if payroll is not modernized
[00:14:34] [SPEAKER_00]: or payroll is not empowered, right?
[00:14:36] [SPEAKER_00]: And that comes in the form of
[00:14:38] [SPEAKER_00]: speed to executing on strategy,
[00:14:40] [SPEAKER_00]: whether that's a merger,
[00:14:41] [SPEAKER_00]: whether that's a divestiture
[00:14:42] [SPEAKER_00]: or some expansion,
[00:14:44] [SPEAKER_00]: but also the agility, right?
[00:14:46] [SPEAKER_00]: Being able to have the ability to see,
[00:14:49] [SPEAKER_00]: use your data to pair with other data
[00:14:51] [SPEAKER_00]: and see around the next corner.
[00:14:52] [SPEAKER_00]: I think that that's the disadvantage
[00:14:54] [SPEAKER_00]: organizations are at when they don't have that, right?
[00:14:57] [SPEAKER_00]: And then to some extent, maybe a lot of that
[00:15:00] [SPEAKER_00]: is steeped in historical sort of views of payroll
[00:15:04] [SPEAKER_00]: as this just process that always happens, right?
[00:15:07] [SPEAKER_00]: It never fails or when it does it,
[00:15:09] [SPEAKER_00]: you know, payroll makes it, figures it out,
[00:15:11] [SPEAKER_00]: makes it right.
[00:15:11] [SPEAKER_00]: I think to some extent,
[00:15:13] [SPEAKER_00]: they've almost been a victim of their own success
[00:15:15] [SPEAKER_00]: in some ways, right?
[00:15:16] [SPEAKER_00]: Like we talk about the electricity thing, right?
[00:15:19] [SPEAKER_00]: Payroll is like electricity.
[00:15:21] [SPEAKER_00]: You flip the lights switch on,
[00:15:21] [SPEAKER_00]: the lights come on, no one complains,
[00:15:23] [SPEAKER_00]: but if the lights don't come on,
[00:15:25] [SPEAKER_00]: people are complaining.
[00:15:26] [SPEAKER_00]: But what happens is I think payroll gets set up
[00:15:29] [SPEAKER_00]: in an operating model that isn't necessarily
[00:15:35] [SPEAKER_00]: enabling their best athleticism
[00:15:37] [SPEAKER_00]: and they're doing the best that they can.
[00:15:40] [SPEAKER_00]: And then when something happens,
[00:15:41] [SPEAKER_00]: everyone looks and goes,
[00:15:42] [SPEAKER_00]: well, what's wrong with payroll?
[00:15:43] [SPEAKER_00]: Well, payroll is doing their job
[00:15:45] [SPEAKER_00]: with one arm behind their back,
[00:15:46] [SPEAKER_00]: tied behind their back, right?
[00:15:47] [SPEAKER_00]: They're doing it with less than support,
[00:15:50] [SPEAKER_00]: less than investment.
[00:15:51] [SPEAKER_00]: And then you wonder why, well, you know,
[00:15:53] [SPEAKER_00]: and then those catalyst moments,
[00:15:54] [SPEAKER_00]: I think make that paradigm shift become more aware.
[00:15:57] [SPEAKER_00]: But until that happens,
[00:15:59] [SPEAKER_00]: which payroll would never let happen
[00:16:00] [SPEAKER_00]: if, you know, over their dead bodies,
[00:16:02] [SPEAKER_00]: you know what I mean?
[00:16:03] [SPEAKER_00]: It's almost like this,
[00:16:04] [SPEAKER_00]: it's almost like a chicken or the egg, right?
[00:16:06] [SPEAKER_00]: Like what's going to happen first?
[00:16:07] [SPEAKER_00]: Payroll needs to fail in order for people
[00:16:09] [SPEAKER_00]: to realize there's a problem.
[00:16:09] [SPEAKER_00]: But if payroll fails, then it's payroll's fault, right?
[00:16:12] [SPEAKER_00]: And meanwhile, they're just not really
[00:16:13] [SPEAKER_00]: in a position to actually perform well.
[00:16:16] [SPEAKER_00]: So I think that's part of the conundrum here in a way.
[00:16:19] [SPEAKER_02]: Yeah.
[00:16:20] [SPEAKER_00]: You guys, any thoughts on that?
[00:16:22] [SPEAKER_02]: No, no, I totally agree.
[00:16:24] [SPEAKER_02]: I mean, I see too many situations
[00:16:25] [SPEAKER_02]: where it's a little bit of a,
[00:16:27] [SPEAKER_02]: it's not broke, don't fix it.
[00:16:28] [SPEAKER_02]: But and that's not really good payroll strategy
[00:16:31] [SPEAKER_02]: because like you have the iceberg,
[00:16:32] [SPEAKER_02]: you know, kind of analogy.
[00:16:34] [SPEAKER_02]: I'd say it's kind of like a duck on water too, right?
[00:16:36] [SPEAKER_02]: Like it may appear calm on the surface,
[00:16:38] [SPEAKER_02]: but if you want to take a peek underneath,
[00:16:40] [SPEAKER_02]: there's a lot going on underneath that risk.
[00:16:43] [SPEAKER_02]: And proactively addressing that is critical
[00:16:47] [SPEAKER_02]: because otherwise it's going to become harder.
[00:16:49] [SPEAKER_02]: You'll have a failure point
[00:16:50] [SPEAKER_02]: or you won't be able to at your point
[00:16:52] [SPEAKER_02]: look around the next corner in a way that you need to.
[00:16:55] [SPEAKER_00]: Yeah, no, absolutely.
[00:16:56] [SPEAKER_00]: That scalability, reliability,
[00:16:58] [SPEAKER_00]: and stability of payroll is so key.
[00:17:00] [SPEAKER_00]: And we saw that just recently
[00:17:01] [SPEAKER_00]: with the CrowdStrike thing, right?
[00:17:03] [SPEAKER_00]: Like there was a lot of angst with payroll,
[00:17:05] [SPEAKER_00]: people being able to get into their systems
[00:17:07] [SPEAKER_00]: and do what they needed to do on that.
[00:17:08] [SPEAKER_00]: I think it was a Thursday or Friday, if I'm not mistaken.
[00:17:11] [SPEAKER_00]: So there had to be some panic, I'm sure for some.
[00:17:13] [SPEAKER_00]: And hopefully, and look,
[00:17:14] [SPEAKER_00]: there may have been some that were in a modern state,
[00:17:17] [SPEAKER_00]: but using, you know, that provider,
[00:17:19] [SPEAKER_00]: I won't name them, that caused that.
[00:17:22] [SPEAKER_00]: And so yeah, I think there's a lot to this, right?
[00:17:25] [SPEAKER_00]: That has to be the lights have to always come on
[00:17:28] [SPEAKER_00]: when it comes to payroll.
[00:17:29] [SPEAKER_00]: We can't, and HR as well, right?
[00:17:31] [SPEAKER_00]: You can't not have that happen.
[00:17:33] [SPEAKER_00]: So yeah, crazy.
[00:17:34] [SPEAKER_00]: Julie, are you seeing any,
[00:17:35] [SPEAKER_00]: are you having any conversations right now
[00:17:37] [SPEAKER_00]: with any of your clients when it comes to
[00:17:39] [SPEAKER_00]: what we just went through with the IT outage
[00:17:41] [SPEAKER_00]: and people maybe making sort of questioning
[00:17:44] [SPEAKER_00]: what they're using
[00:17:44] [SPEAKER_00]: and what they might be using going forward?
[00:17:46] [SPEAKER_01]: You know, I think that particular event
[00:17:48] [SPEAKER_01]: just was so broad and struck so many areas of society
[00:17:51] [SPEAKER_01]: that maybe payroll isn't the loudest, right?
[00:17:56] [SPEAKER_01]: It was on a Friday.
[00:17:59] [SPEAKER_01]: And sometimes payroll processing activities
[00:18:01] [SPEAKER_01]: are kind of closed and ready to go at that point in time.
[00:18:05] [SPEAKER_01]: So I have no doubt, you know,
[00:18:06] [SPEAKER_01]: anytime you're an affected party
[00:18:09] [SPEAKER_01]: in something that is big and unfortunate,
[00:18:13] [SPEAKER_01]: it can drive behaviors.
[00:18:14] [SPEAKER_01]: But I wouldn't say I've seen more uptick recently
[00:18:17] [SPEAKER_01]: and folks definitely focused on payroll
[00:18:20] [SPEAKER_01]: and understanding how hairy it is
[00:18:22] [SPEAKER_01]: underneath the seams
[00:18:23] [SPEAKER_01]: and recognizing it's bigger than just,
[00:18:26] [SPEAKER_01]: you know, trying to pick a vendor
[00:18:27] [SPEAKER_01]: and throw one guy in there
[00:18:29] [SPEAKER_01]: who handles everything in the world, right?
[00:18:32] [SPEAKER_01]: But I don't think I link it to that particular event necessarily.
[00:18:37] [SPEAKER_01]: I haven't seen a lot of that.
[00:18:38] [SPEAKER_00]: Yeah, no, agreed.
[00:18:40] [SPEAKER_00]: You know, one of the things too,
[00:18:41] [SPEAKER_00]: like we found out with the
[00:18:42] [SPEAKER_00]: Payroll Profession Confidence Index
[00:18:43] [SPEAKER_00]: and we've seen it in other studies too
[00:18:45] [SPEAKER_00]: is just the low level of maturity
[00:18:48] [SPEAKER_00]: that there is for payroll globally, right?
[00:18:49] [SPEAKER_00]: I think we had only about 12%.
[00:18:52] [SPEAKER_00]: And I think it was only nine
[00:18:53] [SPEAKER_00]: on the multi-country companies
[00:18:55] [SPEAKER_00]: that responded in the PPCI
[00:18:57] [SPEAKER_00]: that said that they actually were in a transformed state.
[00:19:02] [SPEAKER_00]: And it's like, I feel like,
[00:19:04] [SPEAKER_00]: and I've been saying this maybe for a while as an analyst,
[00:19:07] [SPEAKER_00]: both on the core HR side,
[00:19:08] [SPEAKER_00]: because I do a lot with HCM,
[00:19:10] [SPEAKER_00]: I do a lot in the payroll world,
[00:19:11] [SPEAKER_00]: that these HRs and payroll firms,
[00:19:14] [SPEAKER_00]: you know, groups are not moving fast enough, right?
[00:19:16] [SPEAKER_00]: The companies are not investing,
[00:19:17] [SPEAKER_00]: I don't think digesting some of this quick enough.
[00:19:20] [SPEAKER_00]: And I think you've got a lot of folks
[00:19:22] [SPEAKER_00]: that are still way behind
[00:19:23] [SPEAKER_00]: in not just payroll,
[00:19:24] [SPEAKER_00]: but maybe in some other areas.
[00:19:26] [SPEAKER_00]: But frankly, I don't know,
[00:19:27] [SPEAKER_00]: what do you see is like,
[00:19:28] [SPEAKER_00]: what's holding companies back?
[00:19:30] [SPEAKER_00]: I mean, you guys are having
[00:19:30] [SPEAKER_00]: a lot of transformation conversations.
[00:19:32] [SPEAKER_00]: What's the roadblock?
[00:19:34] [SPEAKER_00]: It almost feels like a no-brainer
[00:19:36] [SPEAKER_00]: to be investing in these things.
[00:19:38] [SPEAKER_02]: Yeah, I think it's a number of things,
[00:19:42] [SPEAKER_02]: but themes that I see around that.
[00:19:44] [SPEAKER_02]: One is, companies have grown up
[00:19:46] [SPEAKER_02]: in lots of different ways
[00:19:47] [SPEAKER_02]: and they've put lots of pieces together.
[00:19:49] [SPEAKER_02]: And so, there's not a single path forward
[00:19:53] [SPEAKER_02]: that seems, so knowing how to start
[00:19:55] [SPEAKER_02]: and where to go and start to move
[00:19:57] [SPEAKER_02]: in that direction can be hard.
[00:19:58] [SPEAKER_02]: I think especially if you're fighting things around,
[00:20:01] [SPEAKER_02]: you know, like Julie talked about who owns it,
[00:20:03] [SPEAKER_02]: how do I become more cross-functional in nature?
[00:20:06] [SPEAKER_02]: And then there's organizations that,
[00:20:08] [SPEAKER_02]: you know, on top of that,
[00:20:09] [SPEAKER_02]: are very decentralized or decision-making
[00:20:11] [SPEAKER_02]: centralized or regional or local.
[00:20:15] [SPEAKER_02]: And they're trying to do this on their own
[00:20:17] [SPEAKER_02]: and having it being a procurement driven type thing.
[00:20:20] [SPEAKER_02]: So those are all different themes that we see.
[00:20:22] [SPEAKER_02]: And it doesn't need to be this big thing either.
[00:20:26] [SPEAKER_02]: Progress can be made towards that
[00:20:28] [SPEAKER_02]: in incremental steps, right?
[00:20:29] [SPEAKER_02]: And steps as you go.
[00:20:32] [SPEAKER_02]: But the best is stepping back
[00:20:33] [SPEAKER_02]: and taking a look at it
[00:20:34] [SPEAKER_02]: and start to put a cohesive strategy together
[00:20:37] [SPEAKER_02]: and centralizing that decision-making
[00:20:39] [SPEAKER_02]: and driving the organization forward.
[00:20:41] [SPEAKER_02]: That's hard.
[00:20:42] [SPEAKER_02]: That's hard.
[00:20:43] [SPEAKER_02]: And it requires that cross-functional,
[00:20:45] [SPEAKER_02]: whether it's finance or HR or IT or whatever owned,
[00:20:47] [SPEAKER_02]: it takes all of those partnerships
[00:20:49] [SPEAKER_02]: across the business to drive that strategy forward
[00:20:51] [SPEAKER_02]: in a way that makes sense because it ties to,
[00:20:53] [SPEAKER_02]: it just payroll sits in the middle of everything,
[00:20:55] [SPEAKER_02]: whether it be your IQ strategy,
[00:20:58] [SPEAKER_02]: your legal components, et cetera.
[00:21:00] [SPEAKER_00]: Yeah.
[00:21:01] [SPEAKER_00]: This is something I've tried to emphasize to people
[00:21:03] [SPEAKER_00]: that payroll knows more about the entire organization
[00:21:05] [SPEAKER_00]: than almost anyone else.
[00:21:07] [SPEAKER_00]: And sometimes people are like,
[00:21:08] [SPEAKER_00]: how is that possible?
[00:21:09] [SPEAKER_00]: I'm like, you have no idea.
[00:21:10] [SPEAKER_00]: All roads lead to us.
[00:21:11] [SPEAKER_00]: If we don't know everyone's process,
[00:21:13] [SPEAKER_00]: we don't know everyone's function,
[00:21:15] [SPEAKER_00]: we can't do ours oftentimes.
[00:21:18] [SPEAKER_00]: So yeah, there's so much information
[00:21:20] [SPEAKER_00]: so much knowledge that could be brought out of that group.
[00:21:23] [SPEAKER_00]: I just wish more would tap into it.
[00:21:25] [SPEAKER_00]: Julie, what were you, go ahead.
[00:21:26] [SPEAKER_01]: I was just going to say there is really truly across
[00:21:28] [SPEAKER_01]: all the spectrum of HR transformation.
[00:21:31] [SPEAKER_01]: I don't believe there's any more complicated
[00:21:33] [SPEAKER_01]: stakeholder roadmap than payroll.
[00:21:36] [SPEAKER_01]: And I also believe navigating a complex stakeholder
[00:21:40] [SPEAKER_01]: environment that crosses different parts
[00:21:42] [SPEAKER_01]: of the organization, it's a double whammy.
[00:21:45] [SPEAKER_01]: It requires a personality and having creds
[00:21:50] [SPEAKER_01]: in your organization to be able to align folks
[00:21:55] [SPEAKER_01]: and get to actionable decisions.
[00:21:59] [SPEAKER_01]: And so you need the right talent to do that,
[00:22:02] [SPEAKER_01]: you need some alignment.
[00:22:04] [SPEAKER_01]: And so that makes it tricky business.
[00:22:05] [SPEAKER_01]: It's definitely one of the trickier things
[00:22:08] [SPEAKER_01]: you could aspire to do.
[00:22:11] [SPEAKER_00]: The other thing too, we talk a lot about
[00:22:14] [SPEAKER_00]: the invested versus leaders that are investing,
[00:22:17] [SPEAKER_00]: putting money on the table versus being culturally engaged
[00:22:20] [SPEAKER_00]: in improving the position for payroll and the engagement.
[00:22:25] [SPEAKER_00]: But when you look at what we saw
[00:22:27] [SPEAKER_00]: on the payroll profession confidence index,
[00:22:29] [SPEAKER_00]: payroll wasn't asking for more technology.
[00:22:32] [SPEAKER_00]: They weren't asking for more investment
[00:22:34] [SPEAKER_00]: from the perspective of, we just want more heads
[00:22:37] [SPEAKER_00]: or that sort of thing.
[00:22:39] [SPEAKER_00]: It was education, it was a seat at the table
[00:22:42] [SPEAKER_00]: and proactive engagement in what's going on
[00:22:45] [SPEAKER_00]: in the organization so that they could actually perform
[00:22:48] [SPEAKER_00]: at their best.
[00:22:49] [SPEAKER_00]: And hopefully it also included some sort of transformation
[00:22:54] [SPEAKER_00]: and investment to give them the tools to do that.
[00:22:56] [SPEAKER_00]: But I think if you read between the lines,
[00:22:59] [SPEAKER_00]: not even really read between the lines,
[00:23:00] [SPEAKER_00]: the actual feedback we got was that
[00:23:03] [SPEAKER_00]: they just wanted proactive engagement.
[00:23:05] [SPEAKER_00]: They wanted an opportunity to be championed
[00:23:07] [SPEAKER_00]: as a center of expertise versus some sort of reactive
[00:23:11] [SPEAKER_00]: back office processor.
[00:23:13] [SPEAKER_00]: Right? But I don't know how, again,
[00:23:17] [SPEAKER_00]: going back to those catalysts,
[00:23:19] [SPEAKER_00]: how do we get senior leaders to have that conversation
[00:23:22] [SPEAKER_00]: and understand that all payroll is asking for
[00:23:24] [SPEAKER_00]: is an opportunity to perform well.
[00:23:26] [SPEAKER_00]: And that kind of breaks my heart because it's like, man,
[00:23:29] [SPEAKER_00]: and that leads me to one of my other concerns
[00:23:31] [SPEAKER_00]: that we've talked about, Julia,
[00:23:32] [SPEAKER_00]: is the fact that we're losing,
[00:23:33] [SPEAKER_00]: we're gonna lose a lot of talent out of this space
[00:23:35] [SPEAKER_00]: if we don't start nurturing and caring for them.
[00:23:38] [SPEAKER_00]: But I just think that one of the things
[00:23:41] [SPEAKER_00]: we've got to get in leaders to understand
[00:23:43] [SPEAKER_00]: is there's gotta be a cultural sort of slant
[00:23:46] [SPEAKER_00]: towards payroll being a priority.
[00:23:48] [SPEAKER_00]: And I just don't know that enough companies
[00:23:50] [SPEAKER_00]: have come around to that yet.
[00:23:52] [SPEAKER_00]: And it's leaving payroll to sort of, again,
[00:23:57] [SPEAKER_00]: limp along with one arm or one leg tied.
[00:23:59] [SPEAKER_00]: You know? And that's not,
[00:24:00] [SPEAKER_00]: that's no way they run a race, right?
[00:24:02] [SPEAKER_00]: It's not gonna lead to the best results.
[00:24:04] [SPEAKER_00]: But any thoughts on that, Julie, you seeing,
[00:24:06] [SPEAKER_00]: or Frank, are you guys seeing anything come around
[00:24:08] [SPEAKER_00]: where leaders are starting to look at payroll
[00:24:09] [SPEAKER_00]: maybe a little bit differently
[00:24:11] [SPEAKER_00]: and engage them in a more proactive way?
[00:24:13] [SPEAKER_00]: Because that's what I think
[00:24:14] [SPEAKER_00]: would be a huge milestone out of this.
[00:24:15] [SPEAKER_00]: So if we could just get payroll
[00:24:16] [SPEAKER_00]: to become more of a first stop
[00:24:21] [SPEAKER_00]: on the list of SMEs we need to engage
[00:24:24] [SPEAKER_00]: versus sort of last to know in the organization.
[00:24:27] [SPEAKER_00]: Anything you guys are seeing there?
[00:24:29] [SPEAKER_01]: Yeah, I'll just say because of the interconnectedness,
[00:24:31] [SPEAKER_01]: it's almost hard to say.
[00:24:32] [SPEAKER_01]: Our leader's thinking about payroll
[00:24:33] [SPEAKER_01]: when that leads sometimes to even deeper questions
[00:24:36] [SPEAKER_01]: about time.
[00:24:38] [SPEAKER_01]: As you know, some of the inputs to payroll
[00:24:40] [SPEAKER_01]: create a lot of the hairiness.
[00:24:42] [SPEAKER_01]: And so figuring out exactly where and when
[00:24:48] [SPEAKER_01]: an organization is really ready,
[00:24:50] [SPEAKER_01]: it feels kind of binary to me.
[00:24:51] [SPEAKER_01]: It always has.
[00:24:53] [SPEAKER_01]: Either I'm gonna suck it up and deal with it
[00:24:55] [SPEAKER_01]: or I'm excited about it and I'm gonna do it
[00:24:56] [SPEAKER_01]: or I'm terrified.
[00:24:58] [SPEAKER_01]: And so I'm just gonna work around it
[00:25:00] [SPEAKER_01]: as best I can until I really have to do something.
[00:25:03] [SPEAKER_02]: I was just gonna say that the concept of investing
[00:25:05] [SPEAKER_02]: or invest, I mean, the best companies are doing both.
[00:25:08] [SPEAKER_02]: They're investing in things
[00:25:09] [SPEAKER_02]: and then they're invested in forward.
[00:25:13] [SPEAKER_02]: And like I said, we're seeing growing,
[00:25:16] [SPEAKER_02]: I think people are waking up at the executive level
[00:25:18] [SPEAKER_02]: and we're seeing more proactive conversations
[00:25:20] [SPEAKER_02]: especially with companies that are
[00:25:23] [SPEAKER_02]: a little more innovative or have big ambitions
[00:25:26] [SPEAKER_02]: to do certain things strategically.
[00:25:27] [SPEAKER_02]: They're there but by large,
[00:25:30] [SPEAKER_02]: what we see is, you know, a procurement driven,
[00:25:33] [SPEAKER_02]: here's a piece of something I need help with.
[00:25:35] [SPEAKER_02]: Here's a regional decision I need to make.
[00:25:37] [SPEAKER_02]: That's the bulk of how clients interact with us.
[00:25:40] [SPEAKER_02]: But to Julie's point, like we, that's why,
[00:25:43] [SPEAKER_02]: at least in my world that I live in,
[00:25:46] [SPEAKER_02]: we've had to grow beyond payroll
[00:25:47] [SPEAKER_02]: and take on a lot of these leading technologies
[00:25:49] [SPEAKER_02]: because we feel like there is such an intersection
[00:25:52] [SPEAKER_02]: between those things that you need to be able
[00:25:55] [SPEAKER_02]: to bring those things together to drive payroll forward.
[00:25:57] [SPEAKER_02]: It can't just be a payroll thing.
[00:25:59] [SPEAKER_02]: Unfortunately, it needs to be tied to how it's going to work
[00:26:03] [SPEAKER_02]: cross-functionally across these other areas
[00:26:04] [SPEAKER_02]: and drive that business strategy forward.
[00:26:06] [SPEAKER_01]: I think that's so important, Frank.
[00:26:09] [SPEAKER_01]: Knitting those two together actually helps
[00:26:11] [SPEAKER_01]: get to decision makers as well
[00:26:14] [SPEAKER_01]: because those decisions are very often tied
[00:26:18] [SPEAKER_01]: so closely to the technology strategy
[00:26:21] [SPEAKER_01]: and all of those pieces.
[00:26:23] [SPEAKER_01]: And so it feels like it's always felt like a natural to me
[00:26:26] [SPEAKER_01]: to have those things tied at the hip.
[00:26:30] [SPEAKER_00]: Yeah.
[00:26:30] [SPEAKER_00]: Frank, what about AI?
[00:26:33] [SPEAKER_00]: Obviously you're having conversations with executives.
[00:26:35] [SPEAKER_00]: What's the sentiment of the organizations
[00:26:38] [SPEAKER_00]: that you're talking to, the leaders you're talking to
[00:26:39] [SPEAKER_00]: when it comes to AI,
[00:26:41] [SPEAKER_00]: the ability to help with payroll or even just HR?
[00:26:43] [SPEAKER_00]: I know you guys are out there doing a lot of work with that.
[00:26:46] [SPEAKER_02]: Yeah, we're doing a ton of work.
[00:26:47] [SPEAKER_02]: Any thoughts on that?
[00:26:48] [SPEAKER_02]: Yeah, ton of work.
[00:26:49] [SPEAKER_02]: We've got a lot going on.
[00:26:51] [SPEAKER_02]: I hear you talk about what we're doing there,
[00:26:52] [SPEAKER_02]: but what I do hear from clients is
[00:26:57] [SPEAKER_02]: not understanding is the unknown and the uncertainty
[00:27:00] [SPEAKER_02]: and what it will bring.
[00:27:04] [SPEAKER_02]: To one end of the spectrum,
[00:27:05] [SPEAKER_02]: I've seen high-level executives
[00:27:07] [SPEAKER_02]: be concerned about signing longer-term contracts,
[00:27:10] [SPEAKER_02]: not knowing what's going to happen in five to seven years.
[00:27:12] [SPEAKER_02]: Just interested in how we're going to bring value
[00:27:15] [SPEAKER_02]: through that product.
[00:27:16] [SPEAKER_02]: So you've got this whole big spectrum
[00:27:17] [SPEAKER_02]: of where people are coming from on it,
[00:27:19] [SPEAKER_02]: but it's really about how is it really going to change?
[00:27:22] [SPEAKER_02]: What areas will it change
[00:27:25] [SPEAKER_02]: and how can it help me and our organizations
[00:27:29] [SPEAKER_02]: be more effective?
[00:27:30] [SPEAKER_02]: And how can I as a leader,
[00:27:31] [SPEAKER_02]: whether I be a CHRO or CFRO or an IT,
[00:27:34] [SPEAKER_02]: how can it help me in terms of the way that we work
[00:27:38] [SPEAKER_02]: to drive different outcomes?
[00:27:41] [SPEAKER_02]: Because they're all trying to figure out
[00:27:42] [SPEAKER_02]: how to embrace it at this stage
[00:27:45] [SPEAKER_02]: and it's just a little bit of an unknown
[00:27:46] [SPEAKER_02]: about how to do that.
[00:27:48] [SPEAKER_00]: Yeah. And there's a balance of the front end
[00:27:51] [SPEAKER_00]: for the customer and also the back end
[00:27:53] [SPEAKER_00]: for things like HR and finance.
[00:27:54] [SPEAKER_00]: I know there's always that, right?
[00:27:56] [SPEAKER_00]: You're always going to lean into your customer first.
[00:27:58] [SPEAKER_00]: So good to have that learning upfront, I think,
[00:28:00] [SPEAKER_00]: and then bring it to the back office.
[00:28:03] [SPEAKER_00]: But Billy, what do you think?
[00:28:04] [SPEAKER_00]: Any thoughts here just around any of these things?
[00:28:06] [SPEAKER_00]: I mean, do you think AI can be the...
[00:28:08] [SPEAKER_00]: I don't know if it's going to save payroll,
[00:28:09] [SPEAKER_00]: but I definitely think it can create an opportunity
[00:28:12] [SPEAKER_00]: for payroll to have more time
[00:28:13] [SPEAKER_00]: and more activation of their data
[00:28:15] [SPEAKER_00]: bring about those sort of prescriptive
[00:28:19] [SPEAKER_00]: strategic advisor kind of skill sets for them.
[00:28:23] [SPEAKER_00]: But what do you think?
[00:28:23] [SPEAKER_00]: Do you think it'll move the needle on payroll
[00:28:25] [SPEAKER_00]: or HR even for this issue
[00:28:28] [SPEAKER_00]: of bringing the C-suite and the frontline together?
[00:28:32] [SPEAKER_01]: Yeah, I think initially at least
[00:28:34] [SPEAKER_01]: there's just some use cases
[00:28:37] [SPEAKER_01]: that are going to be table stake stuff, right?
[00:28:40] [SPEAKER_01]: And it just...
[00:28:41] [SPEAKER_01]: The way you want to automate intelligently
[00:28:45] [SPEAKER_01]: instead of necessarily saying IA,
[00:28:47] [SPEAKER_01]: but you do want intelligent automation.
[00:28:52] [SPEAKER_01]: And there's some more obvious applications.
[00:28:56] [SPEAKER_01]: I think I'm always very interested in hearing
[00:28:59] [SPEAKER_01]: the more creative things or things that tackle
[00:29:02] [SPEAKER_01]: or go to a niche thing, compliances.
[00:29:05] [SPEAKER_01]: Nitty Gritty and Harry,
[00:29:06] [SPEAKER_01]: we've had some folks talk about compliance
[00:29:09] [SPEAKER_01]: and automation, some real different lens to that.
[00:29:14] [SPEAKER_01]: But like most things, payroll has some fixed processes.
[00:29:19] [SPEAKER_01]: So there's lots of great opportunities
[00:29:21] [SPEAKER_01]: and it will become table stakes very quickly, I think.
[00:29:23] [SPEAKER_00]: Yeah, no, absolutely.
[00:29:24] [SPEAKER_00]: And I think we're all kind of...
[00:29:26] [SPEAKER_00]: We're living with it now, right?
[00:29:27] [SPEAKER_00]: I mean, in our personal lives,
[00:29:28] [SPEAKER_00]: whether it's Spotify, Netflix, whatever, Alexa,
[00:29:32] [SPEAKER_00]: it all has something.
[00:29:33] [SPEAKER_00]: She'll probably wake up here in a second now.
[00:29:36] [SPEAKER_00]: But yeah, it's present, right?
[00:29:38] [SPEAKER_00]: And why not, right?
[00:29:39] [SPEAKER_00]: Why not engage it?
[00:29:40] [SPEAKER_00]: And I think it's going to be...
[00:29:41] [SPEAKER_00]: I think the augmentation element of this is the opportunity
[00:29:44] [SPEAKER_00]: because for so long payroll has been bogged down,
[00:29:46] [SPEAKER_00]: HR has been bogged down with the minutia.
[00:29:49] [SPEAKER_00]: This, I think, is where we can really use some help
[00:29:52] [SPEAKER_00]: and give us that insight that we're all sitting on
[00:29:55] [SPEAKER_00]: and be able to have those conversations
[00:29:57] [SPEAKER_00]: and champion the things that we want
[00:29:59] [SPEAKER_00]: to see outcomes for business.
[00:30:02] [SPEAKER_00]: So yeah, no, it's exciting times.
[00:30:04] [SPEAKER_00]: I hope that next year...
[00:30:05] [SPEAKER_00]: We're going to run this survey again.
[00:30:06] [SPEAKER_00]: I hope next year we're going to have
[00:30:07] [SPEAKER_00]: maybe a different conversation,
[00:30:09] [SPEAKER_00]: see some different movement on what the priority of payroll
[00:30:12] [SPEAKER_00]: and the understanding for payroll and the value.
[00:30:14] [SPEAKER_00]: I want to see more...
[00:30:15] [SPEAKER_00]: I think we only had what?
[00:30:16] [SPEAKER_00]: 34% saying they're getting
[00:30:18] [SPEAKER_00]: the real value out of their payroll, pure ROI,
[00:30:21] [SPEAKER_00]: whereas we had others, 70 plus percent that weren't.
[00:30:24] [SPEAKER_00]: So I'd love to see that move forward.
[00:30:27] [SPEAKER_00]: And yeah, we got a lot of work to do, right?
[00:30:28] [SPEAKER_00]: We have to keep evangelizing, I think,
[00:30:30] [SPEAKER_00]: make sure people understand
[00:30:32] [SPEAKER_00]: there's a lot of power in payroll.
[00:30:34] [SPEAKER_00]: And I think firms are missing out on it
[00:30:36] [SPEAKER_00]: when they're not giving them the best opportunity
[00:30:38] [SPEAKER_00]: to be their best.
[00:30:41] [SPEAKER_00]: So yeah, so look, Frank, this has been fantastic.
[00:30:43] [SPEAKER_00]: I think Julie and I would probably love
[00:30:44] [SPEAKER_00]: to keep opining with you on things,
[00:30:47] [SPEAKER_00]: but anything else to add here?
[00:30:48] [SPEAKER_00]: Any...
[00:30:49] [SPEAKER_00]: Where can we find you?
[00:30:49] [SPEAKER_00]: Where can we connect with you?
[00:30:51] [SPEAKER_00]: And yeah, what's next, man?
[00:30:52] [SPEAKER_00]: What's next for Frank and Strada?
[00:30:54] [SPEAKER_02]: Yeah, no, look, I appreciate you having me on.
[00:30:57] [SPEAKER_02]: It's been fun.
[00:30:57] [SPEAKER_02]: I think we could talk for hours
[00:30:58] [SPEAKER_02]: on some of these topics
[00:30:59] [SPEAKER_02]: and get into specific use cases
[00:31:01] [SPEAKER_02]: and things like that.
[00:31:02] [SPEAKER_02]: There's a ton to pack here,
[00:31:04] [SPEAKER_02]: but that's your point.
[00:31:05] [SPEAKER_02]: There's a tremendous amount of activity
[00:31:08] [SPEAKER_02]: going on in the market
[00:31:09] [SPEAKER_02]: to figure out how to move forward.
[00:31:10] [SPEAKER_02]: That's the one thing I can say
[00:31:11] [SPEAKER_02]: with 100% confidence,
[00:31:13] [SPEAKER_02]: whether it's healthy or unhealthy
[00:31:14] [SPEAKER_02]: or the best way to go about it.
[00:31:16] [SPEAKER_02]: I'm not sure all the time,
[00:31:17] [SPEAKER_02]: but there's a ton of...
[00:31:18] [SPEAKER_02]: Everybody's trying,
[00:31:19] [SPEAKER_02]: and I think it's going to continue to...
[00:31:21] [SPEAKER_02]: More and more best practices
[00:31:22] [SPEAKER_02]: around how to move forward
[00:31:24] [SPEAKER_02]: and do these things in AI
[00:31:25] [SPEAKER_02]: will enable that to move faster.
[00:31:27] [SPEAKER_02]: So I'm excited about that.
[00:31:28] [SPEAKER_02]: In terms of me and Strada,
[00:31:31] [SPEAKER_02]: you'll see at all the shows
[00:31:33] [SPEAKER_02]: you're welcome to reach out directly.
[00:31:35] [SPEAKER_02]: You guys know how to get a hold of me.
[00:31:38] [SPEAKER_02]: Anybody in the audience
[00:31:39] [SPEAKER_02]: that wants to have further conversations,
[00:31:41] [SPEAKER_02]: I'd love to have.
[00:31:44] [SPEAKER_00]: So open door.
[00:31:46] [SPEAKER_00]: Yeah, we'll see you on the road.
[00:31:47] [SPEAKER_00]: I'll drop your LinkedIn out here
[00:31:49] [SPEAKER_00]: in the comments.
[00:31:50] [SPEAKER_00]: I'll make sure the Strada website's
[00:31:52] [SPEAKER_00]: out there as well
[00:31:52] [SPEAKER_00]: in case folks want to check that out.
[00:31:54] [SPEAKER_00]: And yeah, Julie, what else?
[00:31:55] [SPEAKER_00]: What do you got going on?
[00:31:56] [SPEAKER_00]: Anything to add here before we wrap up?
[00:31:58] [SPEAKER_01]: Oh, geez.
[00:31:59] [SPEAKER_01]: Well, fall conference season,
[00:32:00] [SPEAKER_01]: I think you know we've been talking
[00:32:01] [SPEAKER_01]: compensation surveys,
[00:32:03] [SPEAKER_01]: our next little micro poll.
[00:32:05] [SPEAKER_01]: And I know you link out
[00:32:06] [SPEAKER_01]: to that pretty regularly.
[00:32:08] [SPEAKER_01]: And I love the client work.
[00:32:11] [SPEAKER_01]: And so this is a time of year
[00:32:13] [SPEAKER_01]: when I'm really deep in it
[00:32:14] [SPEAKER_01]: and working with folks
[00:32:15] [SPEAKER_01]: that are figuring out
[00:32:17] [SPEAKER_01]: what's happening next.
[00:32:19] [SPEAKER_01]: And there's just a lot of...
[00:32:21] [SPEAKER_01]: There's a lot of pipeline out there,
[00:32:23] [SPEAKER_01]: which means there's this pent up
[00:32:25] [SPEAKER_01]: bunch of activity.
[00:32:27] [SPEAKER_01]: And I think as Frank said so well,
[00:32:31] [SPEAKER_01]: people are trying...
[00:32:32] [SPEAKER_01]: There's a lot going on.
[00:32:33] [SPEAKER_01]: They're trying.
[00:32:33] [SPEAKER_01]: They're trying to figure out
[00:32:34] [SPEAKER_01]: what to do to take advantage
[00:32:36] [SPEAKER_01]: of the dynamic space in the market.
[00:32:39] [SPEAKER_01]: So that always drives
[00:32:40] [SPEAKER_01]: just a lot of successes
[00:32:42] [SPEAKER_01]: and then some failures.
[00:32:44] [SPEAKER_01]: Oh, yeah.
[00:32:45] [SPEAKER_00]: Yeah.
[00:32:45] [SPEAKER_00]: And it's overwhelming.
[00:32:46] [SPEAKER_00]: The market is so full of solutions
[00:32:48] [SPEAKER_00]: that it is overwhelming.
[00:32:50] [SPEAKER_00]: I have a lot of buyer conversations
[00:32:51] [SPEAKER_00]: on just that.
[00:32:53] [SPEAKER_00]: What's the difference between
[00:32:54] [SPEAKER_00]: one versus the other
[00:32:55] [SPEAKER_00]: and what's right for us?
[00:32:56] [SPEAKER_00]: I think everyone's trying
[00:32:57] [SPEAKER_00]: to navigate through that.
[00:32:59] [SPEAKER_00]: And that's a good thing.
[00:33:00] [SPEAKER_00]: I mean, gosh, 10 years ago,
[00:33:02] [SPEAKER_00]: there weren't solutions
[00:33:03] [SPEAKER_00]: for some of these micro problems
[00:33:04] [SPEAKER_00]: in HR and payroll.
[00:33:06] [SPEAKER_00]: Now there are.
[00:33:07] [SPEAKER_00]: Now we've got AI really proliferating
[00:33:08] [SPEAKER_00]: and humming along.
[00:33:09] [SPEAKER_00]: So I think it's exciting.
[00:33:11] [SPEAKER_00]: I think it's better time than ever
[00:33:13] [SPEAKER_00]: in the history of HR and payroll
[00:33:15] [SPEAKER_00]: to be shaping the future
[00:33:16] [SPEAKER_00]: that you want.
[00:33:17] [SPEAKER_00]: And yeah, there's a lot of unknowns,
[00:33:19] [SPEAKER_00]: but it's one of those things
[00:33:20] [SPEAKER_00]: where I think the sooner you start,
[00:33:22] [SPEAKER_00]: the sooner you're going to arrive.
[00:33:23] [SPEAKER_00]: Right?
[00:33:24] [SPEAKER_00]: So yeah, I love it.
[00:33:25] [SPEAKER_00]: Well look, hey, and Julie,
[00:33:26] [SPEAKER_00]: how long is your survey running?
[00:33:27] [SPEAKER_00]: We have it in the comments.
[00:33:29] [SPEAKER_00]: I want to make sure everybody knows
[00:33:30] [SPEAKER_00]: that's out there.
[00:33:30] [SPEAKER_00]: That's your compensation
[00:33:31] [SPEAKER_00]: strategy benchmark,
[00:33:33] [SPEAKER_00]: not benchmarking as in salaries.
[00:33:34] [SPEAKER_00]: That's right.
[00:33:35] [SPEAKER_01]: That's correct.
[00:33:36] [SPEAKER_01]: And it's just 15 questions.
[00:33:37] [SPEAKER_01]: So you don't have to be
[00:33:39] [SPEAKER_01]: a comp COE person to answer
[00:33:41] [SPEAKER_01]: that on behalf of what's going on
[00:33:44] [SPEAKER_01]: and how transparent
[00:33:45] [SPEAKER_01]: and what kind of approach
[00:33:46] [SPEAKER_01]: there is to pay.
[00:33:47] [SPEAKER_01]: 15 short questions.
[00:33:48] [SPEAKER_01]: Do it on a Friday
[00:33:49] [SPEAKER_01]: when you're like going, oh,
[00:33:51] [SPEAKER_01]: I wish it was five o'clock already.
[00:33:53] [SPEAKER_01]: And it'll run solidly through August
[00:33:55] [SPEAKER_01]: and then maybe a little bit
[00:33:56] [SPEAKER_01]: into September.
[00:33:57] [SPEAKER_01]: But you know what?
[00:33:58] [SPEAKER_01]: That just encourages people to wait
[00:33:59] [SPEAKER_01]: and do it later.
[00:34:00] [SPEAKER_01]: Just go do it now.
[00:34:01] [SPEAKER_01]: It's 10 minutes.
[00:34:02] [SPEAKER_00]: Yeah, jump on it.
[00:34:04] [SPEAKER_00]: Well look, we appreciate it, Frank.
[00:34:05] [SPEAKER_00]: Thank you so much for coming on.
[00:34:06] [SPEAKER_00]: Congrats to you and Strata Global.
[00:34:08] [SPEAKER_00]: And yeah, we will see you out there
[00:34:09] [SPEAKER_00]: on the fall conference tour.
[00:34:11] [SPEAKER_02]: I look forward to it.
[00:34:12] [SPEAKER_00]: Thanks everyone.
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