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In a perfect world, we might be able to produce, or become, a Chief Payroll Officer (CPO) with the mere snap of our fingers, but unfortunately, that is not the case. As our career progresses and we finally reach the most senior payroll position, that does not mean we will be recognized as the CPO. In fact, the C-suite in most companies is not aware of payroll unless there are issues—remember the EASY button.

A payroll professional’s ascent within an organization to the CPO position is only limited by the organization’s philosophy, mission, and vision, and the individual payroll professional’s ability to support the organization’s philosophy, mission, and vision.

Whatever the organization’s philosophy, mission, and vision are, a payroll professional ascending to the C-suite in an organization must have the following characteristics:

• The CPO must be a payroll subject matter expert on the legislative and regulatory requirements in the countries where the organization has employees. The CPO must also have the ability to explain in easily understood language, without using payroll acronyms, how new legislation and regulations may impact the organization.
• Expert-level soft skills are critical for C-suite payroll professionals. These skills enable successful management of the payroll organization and the payroll organization’s projects, while effectively dealing with other business units and senior management’s issues.
• Excellent written and verbal communication skills are necessary for the CPO.
• The CPO must have a complete understanding of the business, including its operations, strategy, mission, and products. They must have the ability to support the business decisions made, not only in the payroll organization, but also in business units and senior management with data.
• The CPO must have the ability to develop, analyze, and use data to make decisions impacting the payroll operation, and provide data that will enable business units and the C-suite to make effective business decisions.

Where Will a CPO Be Seen?

The ability to advance to CPO is not limited to a specific type of organization. An organization embracing the CPO will recognize candidates who support the strategic decisions that must be made by the organization to succeed.

Can Payroll Professionals Influence Strategic Decisions?

Whether an organization has a CPO or not, the organization’s most senior payroll professional must have the characteristics previously identified and the organization must recognize and use the knowledge, skills, and abilities within the payroll organization to achieve the organization’s goals. The senior payroll professional must be aware of the organization’s mission and vision to support the organization.

Jim Medlock, CPP, is President-Elect for PayrollOrg.