2009 Payroll Performance Study Demographics

Presented by:



Felicia Cheek
Senior Business Advisor
Global Payroll Advisor...
Statement of Confidentiality and Usage Restrictions

This document contains trade secrets and other information that are c...
Over the last 3 years, Hackett has had a little under 500
companies participate in the payroll performance study…




    ...
What Prior Participants Are Saying…
                         “Participation in the Hackett Group’s Payroll Performance Stu...
Participants represented different ranges of employee
Populations and represented different industries…
          Employee...
Corporate alignment and payroll structure also varied
from company to company…
                 Corporate Alignment       ...
The primary pay cycle for most participants was bi-weekly, and most
companies continue to pay in arrears and current based...
79% of our participants processed payroll in house and
  41% use the Oracle PeopleSoft system…
                 Payroll Pr...
Executive Summary
 Overview of the 2009 APA/Hackett Group Payroll Performance Study
   – 100% of Top Performers partner w...
REGISTRATION IS NOW
                                                                                                      ...
Contact Information
 The Hackett Group
 World Headquarters
 Suite N500
 1117 Perimeter Center West
 Atlanta, GA 30338
 Pho...
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2009 Payroll Performance Study Demographics

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Find out more about past participants...where are they aligned under the corporate umbrella, what their structure is, how many employees they pay, and much more!

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2009 Payroll Performance Study Demographics

  1. 1. 2009 Payroll Performance Study Demographics Presented by: Felicia Cheek Senior Business Advisor Global Payroll Advisory Program Practice Leader The Hackett Group May, 2010
  2. 2. Statement of Confidentiality and Usage Restrictions This document contains trade secrets and other information that are company sensitive, proprietary, and confidential, the disclosure of which would provide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the contents contained herein, in whole or in part, for any purpose is strictly prohibited without the prior written consent of The Hackett Group. Copyright © 2009 The Hackett Group, World-Class Defined. All rights reserved. Page 2 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  3. 3. Over the last 3 years, Hackett has had a little under 500 companies participate in the payroll performance study… 2009 Payroll Performance Study Participants Page 3 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  4. 4. What Prior Participants Are Saying… “Participation in the Hackett Group’s Payroll Performance Study is a must do deliverable for anyone who has responsibility for leading and managing Payroll. Results from this study has helped me develop strategic roadmaps for process improvements and enabled me to identify meaningful metrics that I’ve utilized to make informed value-added decisions involving time, money, and resources.” Martin Armstrong, CPP, MBA Sr. Director Payroll Shared Services “Thanks to the performance study, I was able to provide staffing level detail to support a staff of 11.7 FTEs (current staff is 6!). Thanks for providing this information and for your continued support of the payroll industry!” Stuart C Evans, CPP, Manager, Payroll Services "The study administered by Hackett and APA provided useful data and insight into today's payroll process and best Practices. We're leveraging this information as we continue to strengthen our global payroll program today and plan for the future." Roy Potvin, Sr. Manager of Global Payroll EMC Corporation “Starbucks decided to participate in the performance study because we wanted to be top performers in payroll. When we presented a proposal based on the results to HR Senior Management, they immediately accepted it. To date, we have increased our direct deposit participation by 12% and have benefited from many more of the process improvements we have put in place as a result of the study.” Brent Gow, CPP, Director Global Payroll Consulting and Compliance, Starbucks Coffee Company “The Payroll Performance Study has provided us additional insight on the performance of our payroll organization and how it compares to other companies. We especially like the personal presentation and individual recommendations.” Dennis Danilewicz, CPP, Director of Payroll, NYU Medical Center Page 4 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  5. 5. Participants represented different ranges of employee Populations and represented different industries… Employees Industry Healthcare Equipment & Services 22% Commercial Services & Supplies 11% 10% 12% Diversified Financial 9% 8% Media 9% Consumer Services 9% 15% Energy 9% Retailing 7% 16% Pharmaceuticals & Biotechnology 4% Food Beverage & Tobacco 4% 11% Transportation 4% Materials 4% Household & Personal Products 2% 27% <1500 1501-5000 5001-10000 10001-25000 Automobile & Components 2% 25001-50000 50001-100000 >100000 Commercial Goods 2% Capital Goods 2% Page 5 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  6. 6. Corporate alignment and payroll structure also varied from company to company… Corporate Alignment Payroll Structure 3% 1%1% 4% 11% 28% 54% 58% 30% 10% Finance Human Resources Separate Shared Services Dual Reporting Treasury Other Centralized Decentralized Shared Services Outsource Page 6 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  7. 7. The primary pay cycle for most participants was bi-weekly, and most companies continue to pay in arrears and current based on employee type… Primary Pay Cycle Payment Methods 10% 13% 16% 25% 13% 9% 15% 34% 49% 78% 41% 36% 63% Hourly Salaried - Non Salaried - Exempt Exempt Weekly Bi-Weekly Semi-Monthly Monthly Arrears Current Both Page 7 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  8. 8. 79% of our participants processed payroll in house and 41% use the Oracle PeopleSoft system… Payroll Processing System Sourcing Solution 2% 9% 13% 6% 2% 1% 12% 10% 15% 1% 8% 41% 79% ADP - in-house ADP - outsourced Custom developed system J.D. Edwards Lawson Local/regional payroll system In-House Out-Source Co-Source Oracle PeopleSoft SAP Other Page 8 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  9. 9. Executive Summary  Overview of the 2009 APA/Hackett Group Payroll Performance Study – 100% of Top Performers partner with Human Resources, regardless of their corporate alignment, to streamline the end to end payroll process. This means working together during the on-boarding process to encourage direct deposit and pay cards and electronic distribution of pay slips. – The average tenure of payroll resources working for Top Performing payroll organizations is more than 10 years. With this in mind, talent development and succession planning should play a major role in the future vision of payroll organizations. – The paperless payment distribution rate, which measures direct deposit, pay card utilization and electronic distribution of pay slips has increased from 81% in 2008 to 90% in 2009. In addition, it is 17% higher than that of the peer group. Most of the increase is due to the implementation of electronic distribution of pay slips – For Top Performing payroll organizations 58% of their employees enter and/or modify personal data via employee self service, up from 43% in 2008. This is another area in which payroll and Human Resources are working together to create policies and procedures to encourage specific behavior. – Shared Services is the wave of the future, although more payroll organizations are part of a corporate/centralized environment over the next 2 years more payroll organizations will be part of a shared services organization. Page 9 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  10. 10. REGISTRATION IS NOW OPEN! To Find Out More: http://www.thehackettgroup.com/studies/apa2010 Page 10 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  11. 11. Contact Information The Hackett Group World Headquarters Suite N500 1117 Perimeter Center West Atlanta, GA 30338 Phone: +1 770 225 3600 Aldermary House 10-15 Queen Street London EC4N 1ST Phone: +44 207 003 8150 Felicia Cheek Rathausplatz 12-14 Senior Business Advisor 65760 Eschborn/Frankfurt A.M. Germany Global Payroll Advisory Program Practice Leader Phone: +49 6196 77726 0 Phone: + 1 770.225.7320 (office) Phone: +1 770.703.7470 (remote office) 18 rue La Boetie Mobile: +1 404.218.8666 (cell) Paris 75008 France Phone: +33 1 53 43 0400 fcheek@thehackettgroup.com Strawinskylaan 3051G, 1077 ZX Amsterdam, The Netherlands www.thehackettgroup.com Phone: +31 20 301 2210 +1 866 442 2538 Page 11 Payroll Advisory Program © 2009 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
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