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Payroll manager

  • Hours

    30-40 per week

  • Starting salary

    £18,000 + per year



The work

As a payroll manager, you would run a payroll department or team responsible for paying wages correctly and on time.

Your management responsibilities would involve:

  • supervising and training the payroll team
  • creating payroll policies and procedures
  • advising on tax and pay laws
  • managing computer software and systems
  • analysing and reporting on financial data.

In some cases you might run employee benefits schemes and conduct equal pay reviews.

In smaller teams or companies, you might also carry out general payroll administration duties together with your team, including:

  • calculating and issuing pay by cash, cheque or electronic transfer
  • deducting tax and national insurance payments
  • processing holiday, sick and maternity pay and expenses
  • calculating overtime, shift payments and pay increases.

Hours

In a full-time job you would typically work standard office hours, Monday to Friday. Part-time and temporary work may be available.

You would be office-based and spend a lot of your time working at a computer.


Income

Salaries can be between £18,000 and £40,000 a year, depending on your level of responsibility and the size of your team.

Figures are intended as a guideline only.


Entry requirements

You would often start as a payroll administrator and work your way up to supervisor or manager as you gain experience. You will need a good standard of computer literacy, particularly in using spreadsheets and databases.

It may help your promotion prospects to achieve a relevant payroll qualification, such as:

  • Association of Accounting Technicians (AAT) Certificate in Payroll Administration
  • Institute of Payroll Professionals (IPP) National Payroll Certificates
  • International Association of Book-keepers (IAB) Certificate and Diploma in Payroll or Computerised Payroll.

See the IPP, AAT and IAB websites for more information about their qualifications and where to study.

Alternatively, you may be able to join a payroll department with experience as a manager or team leader in another type of office environment, although you should still ideally have some experience of accounts.


Training and development

You would be expected to have a good knowledge of payroll practices and laws before starting as a payroll supervisor or manager. When you start a new job, your employer will usually provide on-the-job training in their own company systems and procedures.

You may have the opportunity to study for advanced payroll qualifications from the IPP whilst you are working, such as:

  • Professional Certificate in Team Management
  • Foundation Degree in Payroll Management (which includes the Practitioner Certificate in Payroll in year one, the Advanced Practitioner Certificate in year two, and the Diploma in Payroll Management in year three)
  • Advanced Diploma in Applied Payroll Management, including BA Hons degree.
  • Masters Degree (MSc) in Payroll Management.

You should continue to develop your skills and keep up to date with payroll law throughout your career. The IPP offers a range of short courses to help your professional development.

See the IPP website for more information about their short courses and qualifications.


Skills and knowledge

  • the ability to lead and motivate a team
  • good mathematical and IT skills
  • good spoken and written communication skills
  • an organised and methodical approach
  • logical thinking and problem-solving ability
  • a high level of accuracy and attention to detail
  • good time management, for meeting strict deadlines
  • honesty
  • respect for confidential information.

More information

Institute of Payroll Professionals (IPP) (Opens new window)
Shelly House
Farmhouse Way
Monkspath
Solihull
B90 4EH
Tel: 0121 712 1000
www.payrollprofession.org

Association of Accounting Technicians (AAT) (Opens new window)
140 Aldersgate Street
London
EC1A 4HY
Tel: 0845 863 0800
www.aat.org.uk

International Association of Book-keepers (IAB) (Opens new window)
40 Churchill Square
Kings Hill
West Malling
Kent
ME19 4YU
Tel: 01732 897750
www.iab.org.uk


Opportunities

You could work in the finance department of larger companies or public sector organisations like local authorities or the NHS. Alternatively, you could be employed by a payroll bureau that provides payroll services to other companies.

Jobs may be advertised in the local press, in Jobcentre Plus and by recruitment agencies.

You may find the following links useful for job vacancies and general reading (links open in new window):

Job profiles are based on the latest information supplied to us by industry bodies, such as Sector Skills Councils. Please be aware that with the introduction of the Qualifications and Credit Framework (Opens in a new window) there has been, and will continue to be, changes to vocational qualifications. For more information, please check with industry bodies directly.

We do not accept responsibility for the content of external sites.


Related industry information

Industry summary

The financial services industry is represented by the Financial Skills Partnership (FSP) which includes the following activities:

  • Banking – for individuals and businesses to manage their money, access loans, buy property, exchange currencies and many other activities. It is organised into three core categories: Retail; Corporate; and Wholesale banking.
  • Investments – managing and growing the wealth of individuals and organisations
  • Insurance – covers a huge variety of risks, from cars and houses to ships, planes and satellites.
  • Financial Advice – about working with people to plan their financial goals, based on their current situation and looking at the best ways they can achieve their financial objectives, such as helping someone to choose a mortgage, invest their savings or plan for their retirement.

Almost 1.2 million staff in 34,000 workplaces constitute the UK’s financial services sector, from online car insurers to retail banking giants, and from self‐employed independent financial advisers (IFAs) to global investment banks. Operating under a regulatory framework unique to the UK, the sector facilitates the allocation of capital, promotes confidence and continuity in life and business by managing risk and maintains the transaction systems that the rest of the economy relies on to conduct its business.

Key facts:

  • 47% of firms employ 250 people.
  • Employment is dominated by a handful of large employers, most notably the high street retail banks, e.g. Barclays, HSBC.
  • 29 % of the financial services workforce is employed in administrative or secretarial roles.
  • About a quarter of the workforce is in associate professional and technical roles.
  • Managerial roles, including owners in private companies and the self‐employed, account for 37% of the workforce.
  • Employment growth in UK financial services has been weak when compared with other countries, notably the US
  • Recently, there have been notable declines in employment numbers because of the recession
  • Staff turnover has declined, as fewer vacancies and concerns about the recession may be deterring people from changing jobs

Jobs in the industry range from:

  • Insurance – underwriting, broking, customer services, sales, risk management, compliance, training, actuarial and administrative roles
  • Investments – asset management (sometimes called fund management), product development, product management, investment analysis, relationship management
  • Banking – retail banking (customer services, customer advice, financial advice, foreign exchange and branch management); corporate banking (corporate advice, relationship management, small business management and corporate management); and wholesale banking (mergers and acquisitions, research, sales and trading, and corporate finance)
  • Financial advice – mortgage adviser, independent financial adviser, compliance practitioner, pensions adviser

National and regional data

East Midlands – retail banking dominates financial services employment in the East Midlands. Women make up 53% of the workforce and 51% of workers are aged 35‐59. Full‐time employees account for 73% of the workforce and the average salary is £29,383.

East of England – insurance and insurance broking make up the most important parts of the financial service economy in this region, with Norwich a main centre. The region employs 12% of the country’s financial services workforce, with the majority, 88%, full‐time. Men make up 56% of employees, with 57% of workers aged 35‐59. Average earnings are £34,433.

London – this is the major centre of the UK’s financial services industry, centering on the City and Canary Wharf. Wholesale banking and insurance, investments and exchange markets are all well represented here. Almost of quarter of the workforce; 24% is based in London. Men make up 66% of the workforce and most jobs are full‐time, 94%. The majority of employees; 49% are aged 20‐34 and the average salary is £86,779 although this is heavily skewed by the number of high‐earning posts in the City. For most, the average is much lower.

North East – insurance broking and banking are the most important financial services in the region, with Newcastle the main centre of activity. Around 3% of the UK workforce is based in the region. Women form 66% of the workforce and 63% of workers are full‐time. Employees aged 34‐59 make up the largest share of the workforce at 52%, and the average salary is £27,219.

North West – Manchester is the biggest centre in the region but Chester, Macclesfield and Stockport are important clusters. Banking and general insurance form the bulk of businesses. The region employs 9% of the UK’s financial services workforce, with women making up 56% of employees, and most jobs are full‐time, 80%. Workers aged 34‐59 form the largest section of the workforce at 57%. The average salary in the region is £28,416.

South East – the region is second only to London in size, taking up 15% of the workforce. The gender split between men and women is fairly even at 54% and 46%, respectively, and 60% of all employees are aged 34‐59. Most people are employed full‐time, 84% and the average earnings are £37,298.

South West – The main centres for financial services in this region are Bristol, Bournemouth, Gloucester and Swindon. The sector here makes up 7% of the UK’s sector total. Women form 59% of the workforce and the majority of jobs are full‐time, 75%. People aged 34‐59 form the largest share of the workforce. Average salary for the sector is £34,910.

West Midlands – the region employs around 6% of the UK’s workforce, with the majority centred on Birmingham. Banking, general insurance and credit are the most important sub‐sectors here. Men make up 52% of employees, with 72% of jobs overall being full‐time. Workers aged 34‐59 are in the majority at 52%. The average salary is £29,014.

Yorkshire and the Humber – the emphasis across the region is on retail banking and makes up 7% of the country’s workforce. There are slightly more women than men working in the sector at 51%, and 81% of jobs are full‐time. Once again, the 34‐59 age range is most common among employees, accounting for 51%. Average earnings are £27,481.

Scotland – financial services in Scotland range from retail banking to pensions and car insurance, with centres of activity in and around Edinburgh, Glasgow and Dunfermline. Over 2,100 companies are directly involved in the industry, providing 7% of the UK’s financial services workforce. The most common age range of employees is 34‐59, and most people work full‐time, 81%. The average salary for the sector as a whole is £35,016.


Career paths


Further sources


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