Why are we innovating? Technology has the power to bring females and payroll to the forefront

With Caxton’s Payroll Payments launching in April, the conversation around payments and how we can accelerate innovation is constantly on the table. It’s a very interesting time to work in payroll since Professional Services as an Industry historically moves cautiously around innovation. And there are good reasons for that. The people who carry the weight of responsibility for getting everyone paid, know first-hand the importance of getting it right the first time, every time – for their overall business reputation, and with innovation comes change and with that change comes the risk of getting it wrong.

But right now, the payroll industry knows that we have a unique opportunity to leverage the innovations that the payments industry has brought over the past years. And leaving that opportunity on the table would be catastrophic.

In terms of innovation, tech in general but especially fintech, are at the forefront of pushing the boundaries of what is possible. Financial and business software accounts for 35% of the world’s unicorns, and tech as an industry is notorious for turning social norms on their head. Compared to traditional finance, fintech is often seen as more inclusive and more likely to hold opportunities for women and other underrepresented groups. Unfortunately, that doesn’t mean that fintech is immune to the gender biases we see in much of the rest of society.

Payroll is a heavily female dominated industry, but as you move up the ranks into leadership, women are fewer and further between. This is a common pattern in many sectors, but it is especially visible in a sector with so many women further down the pyramid. My friend and mentor Maria Mason - BDO has made her way to the top by heavily influencing revenue, which is impressive and difficult to do in payroll. But through managing Risk she landed a clear message and used Technology to support her vision to truly showing the impact on revenues that payroll can have. But at the partnership level, there are so few Payroll Partners other women in general?!

Why is that?

The number of female CEOs has steadily risen, and in January 2023 moved above the 10% threshold for the first time. But something that worries me (apart from the slow pace!) is that very few of these CEOs are in specific industries such as fintech or Senior Leadership/Partners within professional services. Retail has progressed much further in this, just recently I commented on LinkedIn as the Brands highlighted were Nike, Under Armour and others retailers. Is it because we can visualise the value women bring to retail (female shopping habits?1), but not to professional services or Tech? Questionable quite frankly ….

It particularly raises its ugly head in the fintech space because while fantastic innovations are popping up all around us, I worry that we are missing out on ideas and perspectives because we don’t have the right people in the room. How can you truly be innovative if you’re just hearing from one-half of the population? This is not to mention Diversity of thinking that lies within so many overlooked aside from that being gender specific.

Ensuring that women are part of the conversation at every level means that different priorities will come to light that are ultimately to the benefit of the cross-section of the buying population.  As opportunities for flexible working and earned wage access become more common, this enables more women to support their families and work at the same time.

Being able to bring this perspective to the table is why I truly value working in an organisation that has worked towards gender equality on all levels including leadership. It means that we can bring in the male and the female perspective – because while we’re talking about this, we can’t forget our male allies. True equality comes from a place of understanding, not division, so having these conversations not only with the women in the room, but also the men, is hugely important.

We’re excited to keep innovating with a lens on payroll, whilst maintaining a holistic perspective, working with likeminded and forward-thinking organisations such as PayCaptain in close partnership (another thing that can only create better and more connected technology!) to ensure that the future of payments includes the future of payroll.

Happy International Women’s Day