Monthly Measures: Why global payroll process owners are important Monthly Measures: Why global payroll process owners are important

Monthly Measures: Why global payroll process owners are important
30 Nov 2015

About the metric

This metric shows how many multinational companies recognise the importance of the global payroll process owner.

Why it’s important

As companies continue to consolidate payroll operations across the globe, it is important that there is one person with overall accountability and responsibility for the payroll process.

Strategic implications

Multinational companies that manage the payroll process in a decentralised environment have a multitude of payroll leaders making decisions for the payroll process.

Furthermore, in a decentralised environment, the process is plagued with duplication in people,process and technology resulting in higher operation costs. Most companies recognise this and have moved to regional payroll leaders.

With regional leaders, operation costs begin to decrease because of increased visibility and control of the region, but cost reductions are still not maximised across the enterprise. With more companies recognising the benefit of managing the payroll process in a shared services environment, the role of global payroll process owner has grown and will continue to increase well into the future.

A global payroll process owner has accountability and responsibility for the entire payroll process and as a result, can focus on optimising people, process and technology across the enterprise ultimately resulting in lower operation costs.

Contributed by Felicia Cheek, Global payroll
advisory programme practice leader and senior
business advisor at The Hackett Group

 

About the metric

This metric shows how many multinational companies recognise the importance of the global payroll process owner.

Why it’s important

As companies continue to consolidate payroll operations across the globe, it is important that there is one person with overall accountability and responsibility for the payroll process.

Strategic implications

Multinational companies that manage the payroll process in a decentralised environment have a multitude of payroll leaders making decisions for the payroll process.

Furthermore, in a decentralised environment, the process is plagued with duplication in people,process and technology resulting in higher operation costs. Most companies recognise this and have moved to regional payroll leaders.

With regional leaders, operation costs begin to decrease because of increased visibility and control of the region, but cost reductions are still not maximised across the enterprise. With more companies recognising the benefit of managing the payroll process in a shared services environment, the role of global payroll process owner has grown and will continue to increase well into the future.

A global payroll process owner has accountability and responsibility for the entire payroll process and as a result, can focus on optimising people, process and technology across the enterprise ultimately resulting in lower operation costs.

Contributed by Felicia Cheek, Global payroll
advisory programme practice leader and senior
business advisor at The Hackett Group