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It’s here: the CIPP’s Benchmarking Survey Report 2023
For 2023, the CIPP’s Benchmarking Survey Report has been given a fresh, new makeover, which Meena Salhan MCIPP, policy and research officer, CIPP, can’t wait to share with you all. Find out more below... B enchmarking is an important process and allows you to compare your business’s performance to that payroll services provider audience this year, rising from 13% to 20%.
Payroll qualifications 67% stated it’s desirable for potential candidates to have a CIPP payroll qualification.
of others in the industry. This means you can identify areas in which you excel or, conversely, where improvement is needed. Benchmarking can: l improve productivity l increase efficiency l help a business to gain a competitive edge l be applied to any continuous development project. The survey asked a variety of questions and was open to the whole payroll industry. This broadened scope has enabled the CIPP to produce a report which payroll professionals can use to benchmark payroll departments and services, as well as providing insights into how the rest of the industry is performing.
Benefits 85% of the respondents processed benefits, with the majority opting to payroll those benefits. Payroll giving 43% of the respondents processed payroll giving deductions. Pensions 44% had 91-100% of staff paying into a pension scheme through payroll. 76% processed pension deductions as salary sacrifice arrangements. This is a 7% uplift from last year’s figures, despite national minimum wage / national living wage increases. A commendable 61% of respondents paid above the minimum contributions for automatic enrolment. Earned wages access (EWA) 13% offered EWA, and 87% didn’t. This has increased in popularity in the payroll industry, with only 9% respondents indicating they offered this to employees last year.
Payroll frequency 96% operated monthly payrolls, proving to be the most common payroll frequency. Where does the payroll team sit? 11% of payroll teams were a standalone department, 38% were within the finance department and 47% were within the human resources (HR) department. Accuracy Precision is promoted throughout the profession, with 77% confirming they operated at an accuracy level of 96-100%, and 20% achieving a 100% accuracy rate. Even where there was no agreed accuracy level, 95-100% was always the target. KPIs 38% used KPIs and 62% didn’t. 83% used payroll errors / accuracy rate as a KPI. Submissions A whopping 95% of the respondents made all statutory payments and submissions on time last tax year to HM Revenue and Customs (HMRC).
What’s it all about? The report explores: l payroll services l geographics and demographics l organisation details
l processing and the payroll team l payroll frequency and payrolls l accuracy, timeliness and completeness l key performance indicators (KPIs) l overpayments l submissions l value for money l benefits l saving for the future l global payroll. Key findings Some of the interesting findings within the report were: Payroll services Like last year, the survey asked respondents if they mainly processed in-house payrolls or provided payroll as a service. The audience was overwhelmingly from an in-house payroll (80%) environment, similar to last year. However, there was an increase in the
Members with benefits As a reminder, all survey respondents will receive a free copy of the CIPP’s Benchmarking Report 2023 . All full, fellow and Chartered members also receive a copy as part of their membership benefit package. If you’re a member, you can access the full report under the ‘MyCIPP’ area. n
22 | Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96
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