Payroll as a Value Driver

The success of your business is inextricably linked with its biggest asset – people.

One of the fastest ways to derail employee engagement and satisfaction is to make a mistake with payroll. Late salary payments, inaccurate holiday pay and miscalculated benefits can undermine morale and reduce productivity.

So why do so many business leaders still regard payroll as a routine administrative procedure that is a cost centre?

A typical company spends between 50 and 80 percent of its expenditure on payroll, and the costs of preparing and administering these payments are significant. Despite this, a recent survey found that less than half of businesses measure the efficiency of their payroll function, and three quarters said that they had no plans to investigate implementing a payroll strategy to reduce costs and add value to their business during the recession.

In the UK today, relatively few organisations see payroll as a strategic function, with half of companies handing over full responsibility for payroll to the finance function, with one in five opting to outsource the function completely.

It is about time that the payroll department is recognised as having a vital role to play in helping businesses to survive and thrive in a tough economic climate.

For more information and to find out how payroll can help drive value in your business download our whitepaper.