Digital transformation in banking has impacted countless areas of our lives. This technology has positively impacted the availability of financial information and the environment.

One specific example is the rise of paperless payroll. Paperless payroll isn’t just an operational upgrade—it’s a sustainability initiative. These days, employees expect to receive paychecks digitally. Doing so allows employees to easily access relevant financial data. Furthermore, you can integrate these digital options with many other financial services. Examples include financial wellness, 401(k) and HSA management, and tax documents. 

Meeting these changing trends means that executive leadership must change. 

The Environmental Case for Paperless Payroll

The average office worker uses 10,000 sheets of paper every year. A portion of that paper involves paychecks, W-2s, tax forms, and related documents. By digitizing payroll, companies can reduce paper consumption. Specifically, businesses can reduce printing costs. There are also broader environmental considerations to keep in mind. Making digital shifts can reduce environmental costs associated with shipping and storage.

The recent rise in meeting corporate ESG goals has enhanced the business case for more sustainable business practices. An increasing number of shareholders expect businesses to behave in environmentally responsible ways. Paperless payroll can reduce waste and align with business values. 

Strategic Advantages Beyond Sustainability

The advantages of moving to a paperless payroll system extend well beyond sustainability. 

Moving your payroll system to a digital platform provides increased efficiency. Digital systems are typically automated. They require less work and oversight than their paper counterparts. This efficiency frees up your staff and allows them to spend more time on other pursuits. You can use this time and money to pursue other innovations or investments in workforce development.

Digital systems typically have robust security features. Your employees will never have to worry about losing checks or paperwork containing important identification information again.

Digital platforms can ensure compliance with relevant laws. Fully functional platforms can integrate with any accounting system. In so doing, they ensure that your payroll is accurate to the second. 

Digital systems are also easier to operate. Most employees know how to use these systems and have expectations for what these systems should look like. You can thus provide your employees with an easier and more fulfilling payroll experience. 

New Roles Emerging in Finance and Banking

These changes mean that banking and financial businesses must fill new ESG leadership roles. These include:

• Chief Sustainability Officer (CSO): This individual is responsible for all sustainability initiatives. They also directly oversee financial technology. 
• ESG Compliance Directors: These Directors will ensure that all company initiatives, including digital payroll, align with relevant environmental standards. 
• Fintech Transformation Managers: These financial technology specialists will lead the integration of paperless payroll systems into legacy operations. 
• Data Security and Risk Officers: These positions are responsible for protecting data and security within your business. In so doing, they ensure the protection of payroll data across digital platforms. 
• Digital HR and Payroll Strategists: These HR and payroll staff members work to ensure that employee services align with the enterprise’s technology strategies.

What This Means for Financial Leadership Hiring

Banks and financial institutions must now seek leaders who blend ESG leadership roles, operational, financial expertise, and technological fluency. These changes can have a significant impact on any finance executive search. 

Your financial hiring needs have now changed. Prospective recruits must have experience with digital transformation in banking. The ability to lead digital transformation initiatives is tied to environmental outcomes. Your hiring practices must reflect this emerging reality. A robust understanding of digital transformation in banking has become a key differentiator for CFOs, HR executives, and operations leaders. 

What does this mean for hiring leaders in the banking and financial sectors? Simply put, there is an emphasis, at a minimum, on hiring someone with expertise in sustainable finance practices. You are now hiring for sustainability and adaptability. Furthermore, any prospective hire must have cross-functional knowledge of technology and a sustainable environmental agenda. 

The Future of Finance is Digital—and Sustainable

Companies that embrace the intersection of finance, technology, and environmental responsibility will lead their industries.  Your business must now engage in sustainable finance practices like never before. This means your business must conduct a finance executive search that looks for diverse attributes and values.

Many traditional banking and financial firms find managing the prospect of abruptly changing hiring practices difficult. At MRINetwork, we’re here to help. Executive search firms can play a critical role in connecting forward-thinking companies. We know what you want and how to integrate ESG leadership roles into your business model. We can help you find the leadership talent to drive this next era.

Ready to learn more? Contact the MRINetwork for more information.