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Payroll operations

Insights

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.

Which of the following best describes how your payroll operation is currently serviced?

Which of the following best describes how your payroll operation is currently serviced?
Base: All respondents excl. don't know (n=)

What are the top three benefits of your current service delivery model?

What are the benefits of your current payroll service delivery model?
Base: All respondents (n=)
Note: The above percentages represent those ranked 1 and 2.

Given the choice, would you outsource your payroll operations using the same model in place today?

If given the opportunity, would you make the same decision to outsource your payroll operations?
Base: Payroll operations are outsourced excl. don't know (n=)

How would you improve your outsourcing model?

Based on your payroll outsourcing experience, which of these best describes how you would improve it?
Base: Payroll operations are outsourced (excl. not outsourced and don't know/unsure) (n=)