04:05 GLOBAL
Manual Checks Are a Warning Sign With that in mind, it’s perhaps a worry to note that more than three-quarters (77%) of enterprises that have implemented or are implementing a major HCM platform still rely on manual workarounds or backup legacy systems. A backup process is certainly a sensible risk management tactic, but when workarounds become part of the everyday operating model, they suggest an underlying inefficiency. Whether that’s because the system isn’t fully trusted, the data isn’t considered dependable, or the process is not stable enough to carry the weight placed on it is debatable.
What really has to be considered, however, is that a manual check may prevent an error today, but repeated reliance on manual intervention creates another risk tomorrow. It ties experienced people to low-value work, embeds inconsistency and makes scale harder. The Complexity Tax is Real Our research quantifies this hidden cost. On average, HR and payroll teams spend 36% of their capacity managing complexity rather than creating value, and two-thirds (66%) lose more than a quarter of their time to it. There is a financial cost associated with this, too. An average 2.6% of annual payroll spend is consumed by inefficiency, errors, compliance issues and rework. For a business with a $500 million payroll, that equates to $13 million every year. Around a quarter of annual HCM and payroll technology spend is also absorbed by managing complexity rather than improving outcomes. For payroll leaders, these figures should change the conversation. Complexity is not just frustrating, it has a measurable impact
What really has to be considered, however, is that a manual check may prevent an error today, but repeated reliance on manual intervention creates another risk tomorrow.
on budgets, resourcing, service quality and risk.
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GLOBAL PAYROLL MAGAZINE ISSUE 26
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