CIPP FUTURE OF PAYROLL REPORT 2019
Number of employees paid Over six million employees receive a payroll service and customer experience from the survey respondents. With the rise of the ‘Gig economy’ i.e. the movement away from the traditional permanent employment to ‘Gig’ short- term contracts and freelance workers, it’s expected that whilst the way that people are contracted will change, they still need to be paid as per the relevant legislation. This could change how they are paid and by whom, which is touched on later in the report. Job titles of the respondents There were 29 different job titles which came out of the survey with the highest number coming from: ● ● Payroll manager ( 39% ) ● ● Payroll officer ( 12% ) ● ● Payroll supervisor ( 7% ) Ratio of payroll staff to employees The survey looked at the payroll department team size compared to the number of employees serviced by them. As a result, it’s clear that for the majority ( 50% ) team size is a maximum of five people, followed by ‘it’s just me’ ( 31% ) and ‘six to ten’ ( 7% ). In relation to the 31% of ‘it’s just me’, it would be interesting to understand their contingency plans in case of illness or holidays. Is this something that you would be impacted by? who in your organisation would look after payroll should you be unable to? Do you have colleagues in other departments who would pick this up? Or would you look to work with recruitment agencies to bring in temp staff to accommodate this?
However, when you compare that to the circa 4.5 million employees serviced by in-house payroll teams it was impossible to derive a ratio from this set of data to determine payrolls that were best in class versus below the bar.
Of course, there are many factors to consider when deriving this e.g. the complexity of payroll, number of payroll frequencies etc but there should be a set of criteria that should examine this. The CIPP offers a benchmarking exercise which explores how your payroll performs against others within the industry, the results of the latest benchmarking are being released in January 2019 and the benchmarking exercise for the 2018-19 tax year will commence in the summer of 2019
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