PAYROLL INSIGHTS SURVEY 2026 OUTSOURCED
Payroll cut offs
Key Performance Indicators (KPIs)
Outsourced providers give, on average, three days before payday to provide final input for payroll processing, and only two days for weekly and fortnightly. Where this differs significantly from in-house payroll is for monthly processing, as in-house teams gave on average seven days. Therefore, outsourced providers operate significantly shorter payroll cut off periods than in-house payroll teams, particularly for monthly payrolls.
No KPIs measured 8%
Other 8%
Queries resolved 35%
This reflects the need to receive, validate and process client- provided payroll information within compressed timeframes whilst still meeting payroll deadlines.
Client satisfaction 36%
Payslip errors client data error 38%
Payroll completed on time 73% Payroll errors after payment / worker impacted 46%
Payslip errors processing error 46%
Payroll errors before payment / no worker impact 46%
TOP 3 PAYROLL QUERIES
Service quality appears to be the primary focus of outsourced payroll performance measurement. Timely payroll completion is the most widely used KPI, closely followed by payroll accuracy and client satisfaction measures. Together, these metrics highlight that reliability, accuracy and client experience remain the core drivers of success within outsourced payroll operations. 8% of respondents did not use any KPIs at all. This is lower than the 11% it was last year, this could mean that businesses are being more aware of focus on performance indicators to retain clients and win new ones.
ACCESS TO PAYSLIPS
UNDERPAYMENT (LATE DATA RECEIVED)
TAX CODE QUERY
Other KPIs commented were keeping to clients’ schedules, quicker turnaround than expectation, number of payroll re-runs.
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In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.
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