2009 Payroll Performance Study Demographics

2009 Payroll Performance Study Demographics

Presented by:

Felicia Cheek

Senior Business Advisor

Global Payroll Advisory Program Practice Leader

The Hackett Group

May, 2010

Payroll Advisory Program© 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

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Over the last 3 years, Hackett has had a little under 500 companies participate in the payroll performance study…

2009 Payroll Performance Study Participants


What Prior Participants Are Saying…

“Participation in the Hackett Group’s Payroll Performance Study is a must do deliverable for

anyone who has responsibility for leading and managing Payroll. Results from this study has

helped me develop strategic roadmaps for process improvements and enabled me to identify

meaningful metrics that I’ve utilized to make informed value-added decisions involving time,

money, and resources.” Martin Armstrong, CPP, MBA Sr. Director Payroll Shared Services

“Thanks to the performance study, I was able to provide staffing level detail to support a staff

of 11.7 FTEs (current staff is 6!). Thanks for providing this information and for your

continued support of the payroll industry!” Stuart C Evans, CPP, Manager, Payroll Services

"The study administered by Hackett and APA provided useful data and insight into today's payroll

process and best Practices. We're leveraging this information as we continue to strengthen our

global payroll program today and plan for the future." Roy Potvin, Sr. Manager of Global

Payroll EMC Corporation

“Starbucks decided to participate in the performance study because we wanted to be top

performers in payroll. When we presented a proposal based on the results to HR Senior

Management, they immediately accepted it. To date, we have increased our direct deposit

participation by 12% and have benefited from many more of the process improvements we

have put in place as a result of the study.” Brent Gow, CPP, Director Global Payroll Consulting

and Compliance, Starbucks Coffee Company

“The Payroll Performance Study has provided us additional insight on the performance of our

payroll organization and how it compares to other companies. We especially like the personal

presentation and individual recommendations.” Dennis Danilewicz, CPP, Director of Payroll,

NYU Medical Center


12%

15%

11%

27%

16%

8%

10%

<1500 1501-5000 5001-10000 10001-25000

25001-50000 50001-100000 >100000

2%

2%

2%

2%

4%

4%

4%

4%

7%

9%

9%

9%

9%

11%

22%

Capital Goods

Commercial Goods

Automobile & Components

Household & Personal Products

Materials

Transportation

Food Beverage & Tobacco

Pharmaceuticals & Biotechnology

Retailing

Energy

Consumer Services

Media

Diversified Financial

Commercial Services & Supplies

Healthcare Equipment & Services

Employees Industry

Participants represented different ranges of employee

Populations and represented different industries…


54%

30%

11%

1%1%3%

Finance Human Resources Separate Shared Services

Dual Reporting Treasury Other

Corporate Alignment

58%

10%

28%

4%

Centralized Decentralized Shared Services Outsource

Payroll Structure

Corporate alignment and payroll structure also varied

from company to company…


10%

63%

15%

13%

Weekly Bi-Weekly Semi-Monthly Monthly

Primary Pay Cycle

78%

41%36%

9%

34% 49%

13%

25%16%

Hourly Salaried - Non

Exempt

Salaried - Exempt

Arrears Current Both

Payment Methods

The primary pay cycle for most participants was bi-weekly, and most

companies continue to pay in arrears and current based on employee

type…


2%

2%

10%

1%

8%

15%

13%

41%

6%

1%

ADP - in-house ADP - outsourced Custom developed systemJ.D. Edwards Lawson Local/regional payroll systemOracle PeopleSoft SAPOther

Payroll Processing System

79%

12%

9%

In-House Out-Source Co-Source

Sourcing Solution

79% of our participants processed payroll in house and

41% use the Oracle PeopleSoft system…


Overview of the 2009 APA/Hackett Group Payroll Performance Study

– 100% of Top Performers partner with Human Resources, regardless of their corporate alignment, to streamline

the end to end payroll process. This means working together during the on-boarding process to encourage

direct deposit and pay cards and electronic distribution of pay slips.

– The average tenure of payroll resources working for Top Performing payroll organizations is more than 10 years.

With this in mind, talent development and succession planning should play a major role in the future vision of

payroll organizations.

– The paperless payment distribution rate, which measures direct deposit, pay card utilization and electronic

distribution of pay slips has increased from 81% in 2008 to 90% in 2009. In addition, it is 17% higher than that of

the peer group. Most of the increase is due to the implementation of electronic distribution of pay slips

– For Top Performing payroll organizations 58% of their employees enter and/or modify personal data via

employee self service, up from 43% in 2008. This is another area in which payroll and Human Resources are

working together to create policies and procedures to encourage specific behavior.

– Shared Services is the wave of the future, although more payroll organizations are part of a corporate/centralized

environment over the next 2 years more payroll organizations will be part of a shared services organization.

Executive Summary


REGISTRATION IS NOW OPEN!

To Find Out More:

http://www.thehackettgroup.com/studies/apa2010

http://www.thehackettgroup.com/studies/apa2010


Contact Information

The Hackett Group

World Headquarters

Suite N500

1117 Perimeter Center West

Atlanta, GA 30338

Phone: +1 770 225 3600

Aldermary House

10-15 Queen Street

London EC4N 1ST

Phone: +44 207 003 8150

Rathausplatz 12-14

65760 Eschborn/Frankfurt A.M.

Germany

Phone: +49 6196 77726 0

18 rue La Boetie

Paris 75008 France

Phone: +33 1 53 43 0400

Strawinskylaan 3051G, 1077 ZX

Amsterdam, The Netherlands

Phone: +31 20 301 2210

Felicia Cheek

Senior Business Advisor

Global Payroll Advisory Program Practice Leader

Phone: + 1 770.225.7320 (office)

Phone: +1 770.703.7470 (remote office)

Mobile: +1 404.218.8666 (cell)

[email protected]

www.thehackettgroup.com

+1 866 442 2538

mailto:[email protected]

2009 Payroll Performance Study Demographics

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