Monthly Measures: Outsourcing may be common but payroll is still highly transactional Monthly Measures: Outsourcing may be common but payroll is still highly transactional

Monthly Measures: Outsourcing may be common but payroll is still highly transactional
31 Jul 2014

About the metric

This metric is important because it shows the amount of time payroll resources are focusing on transactional activities

Why it is important

Companies performing the payroll administration process in the EMEA region are spending 41 per cent more time on transactional activities than those that are top performers. With outsourcing and technology leverage the goal is to spend less time on transactional activities allowing more time for analytical and process improvement activities.

Strategic implications

All companies must decide what activities internal resources should place focus on. For most, transactional activities are better outsourced or automated through technology, leaving payroll resources to focus on more value added activities such as service and vendor management, internal relationships and process improvement activities.

Over the last few years, top performers have focused on eliminating, automating, simplifying and standardising payroll activities and processes in order to position themselves for a more strategic payroll focus.

So ask yourself where your resources are spending the majority of their time. If they are highly transactional, are they performing laborious activities that can be automated? Or are there activities they are performing that can be outsourced?

 

By Felicia Cheek, GT2P advisory programme director at The Hackett Group.

About the metric

This metric is important because it shows the amount of time payroll resources are focusing on transactional activities

Why it is important

Companies performing the payroll administration process in the EMEA region are spending 41 per cent more time on transactional activities than those that are top performers. With outsourcing and technology leverage the goal is to spend less time on transactional activities allowing more time for analytical and process improvement activities.

Strategic implications

All companies must decide what activities internal resources should place focus on. For most, transactional activities are better outsourced or automated through technology, leaving payroll resources to focus on more value added activities such as service and vendor management, internal relationships and process improvement activities.

Over the last few years, top performers have focused on eliminating, automating, simplifying and standardising payroll activities and processes in order to position themselves for a more strategic payroll focus.

So ask yourself where your resources are spending the majority of their time. If they are highly transactional, are they performing laborious activities that can be automated? Or are there activities they are performing that can be outsourced?

 

By Felicia Cheek, GT2P advisory programme director at The Hackett Group.