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For the third straight time, survey respondents rate legislative compliance as their primary payroll operations challenge. Whilst it is reported as less of an issue than it was two years ago when 27% of respondents identified it as their top issue, versus 17% today, the rising need for global management reporting means that other issues are simply stealing some of the prioritization. Organizational consistency has dropped from the second spot in both 2013 and 2015 to third in our current survey, while for the first time management reporting makes an appearance in the top three challenges, with respondents ranking it as their number two issue. Payroll operations as a whole are therefore becoming an area of focus for executives and a driver in maintaining compliance and driving cost efficiencies enterprise-wide.

For each of the top three challenges identified, one third of respondents indicated that they plan on addressing them at the global level. Not surprisingly given the complexity and the unique jurisdictional requirements, a slightly larger percentage (42%) say they plan to address legislative compliance at a local level. An equal percentage are choosing global and local solutions for management reporting. In terms of organizational consistency of payroll processes, while one third are addressing the issue globally, nearly half (47%) have yet to address it, but plan to do so in the next 12 months.

What are the top three payroll operations challenges facing your company?

2017
2015
2013
What are the top three challenges you currently face related to your global payroll operations?
Base: All respondents (n=)
Note: The above percentages represent those ranked 1.

How is your organization addressing your primary operational challenge?

What are the top three challenges you currently face related to your global payroll operations?
Where is your organization planning to address your primary issue related to your global payroll operations?
Base: All respondents excl. other/don't know (n=)