Monthly Measures: Payroll alignment should be consistent across the globe Monthly Measures: Payroll alignment should be consistent across the globe

Monthly Measures: Payroll alignment should be consistent across the globe
31 Oct 2015

About the metric

This metric shows the difference in payroll alignment across the globe.

Why it’s important?

The alignment of the payroll process is indicative of the goals and objectives of the company. However, there are regional preferences that often impact the ability of a company to have a consistent alignment across the globe.

In the Americas Region, finance is more common, but in the EMEA and APAC region human resources is the more common alignment. As a result, globally some companies split the payroll process between finance and human resources, which can be challenging.

Strategic implications

Top performers are composed of payroll organisations that are aligned under either human resources or finance, but few have an alignment that is split between finance and human resources. When payroll is aligned under the same function across the globe, it is much easier to select a global payroll process owner and it ensures the goals and objectives for payroll are consistent across the enterprise.

While the alignment of the payroll process is rarely a decision a payroll leader will make, it is always beneficial to provide input on the importance of a consistent enterprise-wide alignment. The trend toward placing the payroll process in a shared services environment is making inconsistent alignment less of an issue.

 

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

About the metric

This metric shows the difference in payroll alignment across the globe.

Why it’s important?

The alignment of the payroll process is indicative of the goals and objectives of the company. However, there are regional preferences that often impact the ability of a company to have a consistent alignment across the globe.

In the Americas Region, finance is more common, but in the EMEA and APAC region human resources is the more common alignment. As a result, globally some companies split the payroll process between finance and human resources, which can be challenging.

Strategic implications

Top performers are composed of payroll organisations that are aligned under either human resources or finance, but few have an alignment that is split between finance and human resources. When payroll is aligned under the same function across the globe, it is much easier to select a global payroll process owner and it ensures the goals and objectives for payroll are consistent across the enterprise.

While the alignment of the payroll process is rarely a decision a payroll leader will make, it is always beneficial to provide input on the importance of a consistent enterprise-wide alignment. The trend toward placing the payroll process in a shared services environment is making inconsistent alignment less of an issue.

 

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