Payroll insight and the future of payroll survey 2017
FUTURE OF PAYROLL REPORT
Q1 What is your company sector?
Answered: 606 Skipped: 1
Demographics
Insurance Insurance 2.64% (16) 2.64% (16)
Other (please Other (please specify) specify) 24.59% (149) )
Healthcare Healthcare Providers Providers P2.64% (16) 2. 16
Sector All industry sectors were represented through the survey, with the highest percentage of respondents being from: l Professional services (12%) l Manufacturing (7%) l Other financial services (7%) l Public sector (7%) This was cross referenced against CIPP membership and industry data, and is typical of the demographics of the industry overall. Number of employees paid Over 2.3 million employees are paid by the respondents of this survey, of which 13.4% are considered part-time workers. This is supported by employment trends in the UK which indicates that the percentage of part-time workers is due to rise with an influx of contingent workers as the millennial workforce increases. For payroll, this will create a complex structure as workers maximise on flexible working patterns. UK versus international Whilst the survey was only distributed to professionals based in the UK, 21% of respondents also manage international payrolls. This is representative of the CIPPs overall membership base. Outsourced versus in-house The majority of respondents (72%) operate their payroll in-house; 15% outsource their payroll to a service provider, and 13% stated that they have a mixture of in-house and outsourced payroll. With UK payroll training both accessible and frequent, there is more confidence and knowledge within the industry to support organisations operating their payroll in-house.
Construction Construction 2.97% (18) 2.97% (18)
24.59% (149)
2.64% (16) 2.64% (16)
Retail
Education Education Education 4.79% (29) 4.79% (29) Retail 4.29% (26) 4.29% (26)
Professional Professional Professi Services Services 12.21% (74)
Non-Profit Non-Profit 5.61% (34) 5.61% (34) %
12.21% (74) 12.21% (74) Manufacturing Manufacturing 7.10% (43) 7.10% (43) (
Public Sector Public Sector 6.93% (42) 6.93% (42)
Other Financial Other Financial Services Services Se6.93% (42) 6. 3%
6.93% (42)
The results show that there is no correlation between the size of the payroll team and the industry to which they belong. This suggests that the level of complexity within payroll is the same regardless of the number of employees and could be influenced by many differing factors, such as: l Part-time workers l Casual workers l Zero hour contracts l Automatic enrolment for pensions l Salary sacrifice arrangements HR/finance This report set out to establish where payroll sits within an organisation. Whilst the CIPP promotes payroll as a standalone profession and department within organisations, it is clear from the level of response that payroll still falls significantly under finance (64%). As legislation changes impact both the payroll and HR professions, and the information provided through payroll impacts on the overall HR and reward strategies within organisations, it would be interesting to see whether this split changes over the coming months and years. There is evidence from respondents’ comments within the survey results to support this shift from finance to HR. 24.59% 12.21% 7.10% 6.93% 6.93% 5.61% 4.79% 4.29% 2.97% 1 / 2
ANSWER CHOICES
RESPONSES
Other (please specify) (33)
Professional Services (26)
Manufacturing (20)
Other Financial Services (24)
Public Sector (27)
Non-Profit (23)
Education (12)
Retail (28)
Construction (7)
Technological advancements through cloud computing have also made running payroll in-house more efficient.
“HR will become more integrated with payroll.”
“Streamlining into HR dep. And new software will be implemented.”
Number of people working in payroll Regardless of whether payroll is processed in-house or outsourced, the majority of organisations have up to five employees working in the payroll department.
“A closer working relationship with HR.”
6
CIPP AND WORKDAY
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