12 Nov 2025
Payroll, People, and Performance: HR’s Strategic Role in the Public Sector
In this article, Michael Howard, Managing Director of Frontier Software, explores HR’s strategic role in a changing public sector — where accuracy, compliance, and trust all start with payroll. With hybrid work, constrained budgets, and growing employee expectations redefining priorities, he reveals how technology and proactive HR leadership can make payroll a true driver of organisational success.
As the public sector navigates hybrid working, tighter budgets, and heightened security, one thing remains non-negotiable: payroll. Accurate, compliant, and timely pay isn’t just an administrative duty, it’s a promise to staff and a foundation for organisational success.
The past five years have transformed public sector workforces. From hybrid models to tighter budgets, HR teams have faced unprecedented change. Yet amid evolving demands, one element remains critical: payroll.
“Payroll is more than just paying people, it’s a promise,” says Michael Howard. “Inaccurate or late payroll doesn’t just frustrate employees; it erodes trust and can create serious compliance risks.”
The stakes are higher than ever
For councils, hospitals, schools, and other public bodies, the combination of regulatory scrutiny and rising employee expectations makes payroll accuracy essential. Errors can result in reputational damage, financial penalties, and disengaged staff. “We often see organisations focus on cost-cutting or process efficiency, but if payroll isn’t right, all that effort is wasted,” Michael adds.
Technology as an enabler
Technology has a key role to play. Intelligent payroll systems and automation are no longer optional, they’re essential. They reduce the risk of human error, ensure statutory compliance, and free HR teams to focus on strategic initiatives such as employee engagement, wellbeing, and talent retention. “Automation allows our clients to spend less time firefighting payroll issues and more time shaping a positive employee experience,” says Michael.
A holistic approach to people
Beyond accuracy, the most effective HR teams view employees as whole individuals whose professional and personal lives intersect. Reliable payroll is foundational to this holistic approach. It builds trust, reduces stress, and supports organisational culture.
“Getting payroll right is foundational,” Michael explains. “It builds trust, supports wellbeing, and enables HR to be a true strategic partner. When employees feel secure and valued, they perform better, and that drives organisational success.”
Looking ahead
Looking ahead, the challenge for HR and payroll teams is not just to keep pace with change but to lead it. By leveraging technology, prioritising accuracy and compliance, and focusing on the employee experience, organisations can turn payroll from a back-office function into a strategic advantage.
“Payroll isn’t a burden,” concludes Michael; “It’s an opportunity to show employees they are valued, to build trust, and to underpin a culture where people can thrive. That’s the future of HR, and it starts with getting the basics right.”
Frontier Software has been delivering HR and Payroll software solutions across the public sector for over 40 years, using proven software for recording, managing and reporting on people and pay data. Contact us here.
Article originally published on Public Sector Focus October 2025.