How to Build a High-Performing Payroll Team

Building a high-performing payroll team starts long before recruitment begins. It’s not just about filling seats – it’s about identifying what your business needs today, what it will require tomorrow, and what kind of people will help you get there. A strong payroll function is built on a blend of technical expertise, collaboration, adaptability, and communication.

Before hiring or restructuring, employers should first assess their payroll system capabilities, internal processes, and long-term goals. The technology you use, the complexity of your workforce, and your plans for expansion or automation will all influence the size, structure, and skill sets required within your team. A business running a single UK payroll needs different capabilities from one managing multi-country or multi-entity operations.

Define Business Needs Before Building the Team

Start by mapping out your payroll workflow from end to end. Identify which tasks are manual, which are automated, and where bottlenecks occur. From there, you can determine whether you need system specialists, compliance experts, or analytical talent to improve efficiency. For instance, a business planning a new HRIS integration may need someone with systems migration experience, while one facing rapid headcount growth might prioritise a strong payroll manager with proven leadership skills.

Once business needs are clear, it’s easier to define the optimal team size and structure. Some organisations benefit from a lean team supported by advanced technology; others require multiple layers of expertise to ensure compliance across complex environments. A clear operational map allows you to hire strategically, not reactively.

Understand What Motivates Payroll Professionals

A truly high-performing payroll team doesn’t just run accurate payments – it operates with commitment and pride. To attract and retain that calibre of professional, you must understand what motivates them.

Payroll specialists are driven by more than numbers. They value recognition, trust, and progression. Too often, payroll is treated as a back-office function, when in reality it’s central to employee satisfaction and business continuity. Recognising payroll achievements publicly – whether that’s successful year-end processing or a seamless system migration – goes a long way in keeping professionals engaged.

Progression opportunities are equally vital. Payroll professionals want to see clear development paths, whether into management, systems specialisation, or international payroll. Our latest Payroll Salary Guide reveals that payrollers increasingly prioritise career growth and learning over short-term salary increases. Structured development, mentorship, and training all contribute to retention and performance.

Combine Technical Skill with the Right Temperament

Technical proficiency is essential, but it’s only part of what makes a payroll professional effective. Payroll operates under constant time pressure and demands exceptional attention to detail. The ability to remain calm, organised, and communicative under stress is just as important as software knowledge or compliance expertise.

Strong communication skills are critical – both within the team and when dealing with other departments. Payroll professionals must translate complex regulations into clear, actionable language for HR, finance, and employees. Those who can do so build trust across the business and prevent misunderstandings that could lead to costly errors.

When hiring, look for candidates who demonstrate resilience, empathy, and accuracy under pressure. These soft skills are the foundation of high performance in an environment where deadlines never move.

Stay Connected to the Payroll Community

Payroll doesn’t exist in isolation. Regulations, technology, and best practice are constantly evolving, and professionals who stay connected to their network are far better equipped to adapt. Encourage your team to build relationships through professional associations such as the

Chartered Institute of Payroll Professionals (CIPP).

Membership with organisations like the CIPP provides access to training, legislative updates, and peer networks that help payroll teams stay compliant and motivated. Engaged professionals bring fresh knowledge and ideas back into the business, ensuring your payroll function remains ahead of the curve.

Networking also supports benchmarking and continuous improvement. Our consultants often advise clients to encourage payroll staff to attend industry events and seminars, where they can learn about market standards, technology upgrades, and career development opportunities. The best teams never stop learning.

Use Data and Benchmarking to Build Strategically

High-performing teams are data-informed. Benchmarking salaries, workloads, and skill distribution helps ensure your payroll structure remains competitive and sustainable. Understanding market expectations prevents under-resourcing, which is one of the most common causes of burnout and turnover in payroll.

At Portfolio Payroll, we support employers in evaluating their current payroll setup, benchmarking compensation, and planning future recruitment needs. With over 35 years of experience in payroll recruitment and recognition as the number one rated agency on Trustpilot, we understand what makes a payroll team both efficient and resilient.

Our consultants work with businesses of all sizes to identify the right balance between automation, headcount, and expertise – ensuring payroll functions can scale confidently as organisations grow. Whether you’re hiring system analysts, payroll managers, or interim support, we offer professional hiring solutions for payroll jobs that align with your business strategy.

Build for the Future, Not Just for Today

Payroll is changing rapidly. Automation, hybrid work, and international expansion are reshaping how teams operate. The most successful payroll leaders anticipate these shifts, investing in systems and people that can evolve together.

Future-proofing your payroll team means hiring adaptable professionals who embrace change, collaborate effectively, and seek continuous improvement. And with the right partner, you’ll have the guidance to make every hire count.