In 2017, the top benefits stemming from organizations’ current service delivery model include increased payroll accuracy (45% of organizations report this a top three benefit), increased control over payroll operations (45% list this as a top three benefit) and cost optimization (top three benefit for 43%). Interestingly enough, both cost optimization and payroll accuracy are in the top three vendor challenges, with 24% of organizations citing these as major challenges impacting their operations.
When asked whether organizations would outsource their payroll operations using the same model in place today, an overwhelming 87% said they would, with cited improvements potentially stemming from an adjustment to the scope of their outsourcing model (64%) or a different payroll provider (52%).
While we expect organizations to continue adjusting their models, it does indicate that in large part, the adjustments made help to achieve desired results. This may show that payroll operations are becoming more strategic in their approach, setting clear objectives, providing a business case, and obtaining the resources and funds to meet their needs.