This document summarizes the key findings of a study conducted by PwC on the total cost of ownership (TCO) of payroll, time & attendance, HR data administration, and health & benefits functions. The study found that outsourcing these functions leads to significantly lower costs compared to in-house administration. Organizations that outsource multiple functions to a single vendor see additional cost savings by avoiding "seams costs" associated with integrating different systems. Many organizations underestimate TCO by failing to account for "hidden costs" like indirect labor and system maintenance.
Total Cost of Ownership Pricewaterhouse Coopersummersamuels
The document summarizes a study on the total cost of ownership (TCO) of payroll and human resources administration for organizations. Some key findings include:
1) Organizations often underestimate the true costs of administering payroll, benefits, and other HR functions due to hidden costs.
2) Outsourcing multiple HR functions to a single vendor can reduce costs by an average of 32% compared to using multiple in-house systems.
3) Providing employee self-service reduces the TCO of workforce administration by 50% for large organizations compared to those without self-service.
The Hidden Reality of Payroll & HR Administration CostsAdrian Boucek
This document summarizes the findings of a study on the total cost of ownership (TCO) of payroll and HR administration functions. The study analyzed data from 279 organizations to determine key cost drivers and the most cost-effective strategies. It found that organizations tend to underestimate administration costs and can save 18-32% by outsourcing functions or using a common vendor over separate best-of-breed solutions. Providing self-service and integrating time & attendance with payroll also significantly reduce costs. Comprehensive process transformation, not just technology, leads to the greatest cost effectiveness.
1. The study found that the total cost of ownership for in-house administration of payroll, workforce administration, time & attendance, and health & welfare benefits is surprisingly high, averaging over $1,400 per employee per year for large organizations and nearly $2,000 per employee per year for mid-size organizations.
2. Contrary to expectations, administration costs have actually increased rather than decreased since 2003 despite technological advances, as organizations have focused more on technology transformation than process transformation.
3. Outsourcing these functions continues to provide overall cost advantages, reducing total cost of ownership by an average of 18% compared to in-house administration.
4. Utilizing a common vendor or solution to manage
On June 30, 2015, the Department of Labor (DOL) released proposed changes to the overtime regulations. This survey was designed before DOL proposed these changes to the overtime regulations and represents the HR profession’s general perspective on FLSA overtime exemptions.
ADP offers a wide range of payroll, tax, HR, and insurance services for small businesses including:
- Payroll processing, tax filing and payment, new hire reporting, and labor law compliance.
- Time and attendance tracking, online timesheets, and payroll reports.
- HR outsourcing, pre-employment screening, and compliance services.
- Retirement services including 401(k) and SIMPLE IRA plans.
- Workers compensation and health insurance programs.
Shrm survey findings using competencies to achieve business unit success finalshrm
SHRM surveyed executives of business units other than HR (e.g., CEO, CFO, Vice President) to learn more about their views of what it takes for leaders to be successful across HR departments and different functional areas such as finance and accounting, sales and marketing, and IT. Specifically, this report focuses on the competencies needed now and in the future, including Business Acumen, Communication, Consultation, Critical Evaluation, Ethical Practice, Global and Cultural Effectiveness, Human Resource Expertise, Leadership and Navigation, and Relationship Management. The report also looks at which competencies are lacking in the labor pools of candidates for HR and other business units, and how to address those competency gaps.
This document provides a quiz with 69 multiple choice questions about staffing processes, policies, metrics, and legal compliance. Some key topics covered include the centralization of staffing functions, integration of HRIS systems, outsourcing of HR activities, evaluation of staffing processes, and legal record keeping/reporting requirements.
Total Cost of Ownership Pricewaterhouse Coopersummersamuels
The document summarizes a study on the total cost of ownership (TCO) of payroll and human resources administration for organizations. Some key findings include:
1) Organizations often underestimate the true costs of administering payroll, benefits, and other HR functions due to hidden costs.
2) Outsourcing multiple HR functions to a single vendor can reduce costs by an average of 32% compared to using multiple in-house systems.
3) Providing employee self-service reduces the TCO of workforce administration by 50% for large organizations compared to those without self-service.
The Hidden Reality of Payroll & HR Administration CostsAdrian Boucek
This document summarizes the findings of a study on the total cost of ownership (TCO) of payroll and HR administration functions. The study analyzed data from 279 organizations to determine key cost drivers and the most cost-effective strategies. It found that organizations tend to underestimate administration costs and can save 18-32% by outsourcing functions or using a common vendor over separate best-of-breed solutions. Providing self-service and integrating time & attendance with payroll also significantly reduce costs. Comprehensive process transformation, not just technology, leads to the greatest cost effectiveness.
1. The study found that the total cost of ownership for in-house administration of payroll, workforce administration, time & attendance, and health & welfare benefits is surprisingly high, averaging over $1,400 per employee per year for large organizations and nearly $2,000 per employee per year for mid-size organizations.
2. Contrary to expectations, administration costs have actually increased rather than decreased since 2003 despite technological advances, as organizations have focused more on technology transformation than process transformation.
3. Outsourcing these functions continues to provide overall cost advantages, reducing total cost of ownership by an average of 18% compared to in-house administration.
4. Utilizing a common vendor or solution to manage
On June 30, 2015, the Department of Labor (DOL) released proposed changes to the overtime regulations. This survey was designed before DOL proposed these changes to the overtime regulations and represents the HR profession’s general perspective on FLSA overtime exemptions.
ADP offers a wide range of payroll, tax, HR, and insurance services for small businesses including:
- Payroll processing, tax filing and payment, new hire reporting, and labor law compliance.
- Time and attendance tracking, online timesheets, and payroll reports.
- HR outsourcing, pre-employment screening, and compliance services.
- Retirement services including 401(k) and SIMPLE IRA plans.
- Workers compensation and health insurance programs.
Shrm survey findings using competencies to achieve business unit success finalshrm
SHRM surveyed executives of business units other than HR (e.g., CEO, CFO, Vice President) to learn more about their views of what it takes for leaders to be successful across HR departments and different functional areas such as finance and accounting, sales and marketing, and IT. Specifically, this report focuses on the competencies needed now and in the future, including Business Acumen, Communication, Consultation, Critical Evaluation, Ethical Practice, Global and Cultural Effectiveness, Human Resource Expertise, Leadership and Navigation, and Relationship Management. The report also looks at which competencies are lacking in the labor pools of candidates for HR and other business units, and how to address those competency gaps.
This document provides a quiz with 69 multiple choice questions about staffing processes, policies, metrics, and legal compliance. Some key topics covered include the centralization of staffing functions, integration of HRIS systems, outsourcing of HR activities, evaluation of staffing processes, and legal record keeping/reporting requirements.
This document summarizes a research paper that analyzes the effectiveness of electronic human resource management (e-HRM) compared to traditional HRM. The study was conducted among 45 employees of public organizations in Moradabad, India. The study found that e-HRM is more effective and convenient than traditional HRM. It also found that employees were generally satisfied with e-HRM processes and felt it made their work easier. The paper concludes that e-HRM enhances workability for employees through different activities, policies and procedures compared to traditional HRM.
2014 workplace flexibility_survey_overview of fw_asSHRMRESEARCH
The survey found that among organizations offering flexible work arrangements (FWAs):
- About half offered sabbaticals, paid time off for volunteer work, and part-time/reduced hour schedules formally. Most other FWAs were offered informally.
- Over half reported that paid/unpaid time off for volunteer work, break arrangements, transition periods after life events, and flex time with core hours were available to all or most employees.
- Organizations reported that typically only 1-25% of eligible employees used each FWA offered.
- At least four-fifths found 13 out of 17 FWAs to be somewhat or very successful.
The document summarizes findings from a SHRM survey on flexible work arrangements (FWAs). Key findings include:
1) Many organizations have not established methods to measure the impact of FWAs on outcomes like recruitment, retention, employee experience, and organizational success.
2) Respondents indicated that industry standards, benchmarks, and analytics training would be useful for implementing FWA measurement plans.
3) Factors like support from top management and a supportive culture were seen as very important to FWA success, while gradual implementation and participation from all levels were seen as less important.
4) FWAs were reported to have a positive impact on areas like recruitment, retention, employee morale, and the organization's
The survey found that while the percentage of organizations engaging in sustainable workplace practices has remained stable over the last two years, there were some small declines in certain socially and environmentally responsible activities. However, there was a slight increase in organizations calculating a positive return on investment from their sustainability efforts. Key findings included that about 72% of organizations engage in sustainability, and it is seen as important for attracting and retaining talent. Large organizations and those in certain sectors were more likely to have sustainability policies and practices.
This document summarizes the hidden costs associated with managing HR processes internally. It finds that the average company spends over $2,000 per employee per year on payroll, benefits, and HR administration alone when managing these processes internally. Hidden costs, like system maintenance and indirect labor, account for 63% of total spending. Outsourcing individual HR processes fails to reduce total costs of ownership, as integration between systems introduces additional expenses. The document advocates taking a holistic approach to HR that considers processes, technology, and people in order to gain efficiencies and better control costs.
The document summarizes the findings of a SHRM survey on job analysis activities. It found that the most common methods used to conduct job analyses were interviews, observation, and structured questionnaires. Organizations most commonly collected information on knowledge, skills, abilities, and tasks. This information was primarily used for recruitment, performance standards, and compensation. Job analyses were conducted most for management, nonexempt, and professional nonmanagement positions.
The document summarizes key findings from a SHRM survey on internships:
- Nearly two-thirds of organizations hired interns in 2013, with most hiring between 1-10 interns. About one-third offered more internships compared to 2012.
- The majority (89%) of internships are offered to undergraduate students, half to graduate students, and 17% to high school students. Most high school and undergraduate internships are summer internships.
- Two-fifths of organizations have an internship coordinator, most of whom (80%) work in the HR function. HR also provides guidelines for intern work in 69% of organizations.
GESNA - Human Capital Insights Magazine - Volume 5Stacy Klein
This document discusses several strategies that large companies are using to increase employee happiness and productivity. It begins by explaining how happy employees are 12% more productive while unhappy employees are 10% less productive. It then provides examples of how some companies, like Intuitive Research and Technology Corporation, focus on bonuses and profit sharing, certification training, health programs, benefits for veterans, and general benefits allowances to boost employee satisfaction. The document concludes by advising HR leaders to focus on screening, recognition, work-life balance, workplace friendships, and playing to employee strengths in order to maximize happiness and retention while minimizing costs from lost productivity and turnover.
- According to HR professionals, 61% of employees have fair or poor financial health, with those at organizations with more hourly workers faring worse. Employees aged 25-34 experience the most financial stress.
- Most employees have some level of financial literacy, though those at organizations with more hourly workers tend to be less literate.
- Common benefits offered are retirement planning and loan products from third parties. HR professionals report that these benefits positively impact employees' ability to manage financial difficulties.
- Financial stress can impact work through absenteeism, requests for pay advances, and may eventually lead to wage pressure or benefit changes to better support stressed employees.
This document discusses the financial opportunities of outsourcing human resources functions to a Professional Employer Organization (PEO). Key points include:
- Outsourcing HR to a PEO can save businesses significant time by consolidating transactional HR tasks and responsibilities with a single provider. Surveys found businesses saved an average of 23-48 hours per week depending on company size.
- This time savings provides opportunities to reduce operating costs by eliminating HR staff, or to generate additional revenue by redeploying staff to core business activities. One example found potential bottom line savings of $60,372 and top line gains of $112,320 annually for a company outsourcing to a PEO.
- PEO
The document summarizes key findings from a SHRM survey on the aging workforce. Some of the main findings include:
- HR professionals see the top advantages of older workers as their experience, maturity, and strong work ethic.
- The strongest basic skills of older workers are seen as writing, reading comprehension, and spoken English. The strongest applied skills are professionalism, critical thinking, and lifelong learning.
- Many organizations are increasing training to address potential skills gaps from retiring older workers, but 1/3 have taken no steps to prepare.
- Over half of organizations are using knowledge transfer strategies like training programs to share older workers' knowledge with younger employees.
The document discusses the key findings of a SHRM survey on the aging workforce and recruitment and retention. Some of the main findings include:
- Over 40% of organizations indicated the increasing age of their workforce has not prompted changes to retention, recruiting, or management practices.
- The most common methods for directly recruiting older workers were employee referrals and networking, while over half of organizations do not actively recruit older workers.
- Flexibility in work location, career, and hours were among the most challenging factors for retaining older workers.
- Two-thirds of organizations employ older workers who previously retired from other careers or organizations, though most comprised only 1-20% of the workforce.
The Aging Workforce -State of Older Workers in U.S. Organizationsshrm
This document summarizes the key findings of a SHRM survey on the aging workforce in U.S. organizations. The survey defined older workers as those aged 55 and older and found that most organizations and employees consider someone an older worker between ages 50-64. It also found that while over a third of organizations are examining policies to address aging workforces, around half do not see potential talent losses from retirement as problematic currently. Additionally, around half of organizations track retirement eligibility within 5 years.
The document provides details about a study conducted on the performance appraisal system of Tata Consultancy Services (TCS). It includes an introduction to TCS, objectives and scope of the study, methodology used which involved questionnaires and interviews, data collection including demographics of respondents, analysis of the questionnaire responses, and literature review on performance appraisal systems. The key findings were that the bell curve-based appraisal system used by TCS creates stress, destroys loyalty, and has led to high attrition rates. Respondents generally felt the system was unfair and a demotivator.
This document discusses employee attrition (turnover), which refers to employees leaving their jobs. It provides definitions of attrition and attrition rate. Some of the key reasons for attrition discussed include higher pay elsewhere, poor working conditions, lack of career advancement opportunities, and personal reasons. Specific to the insurance industry, the document notes attrition rates of 35-40% for agents due to the high-pressure nature of the work and difficulties sustaining business over time. Calculating accurate attrition rates can be challenging for organizations.
The Ongoing Impact of the Recession—Recruiting and Skill Gapsshrm
Two-thirds (66%) of organizations that are currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 52% reported in 2011. HR professionals indicated that the top four applied skills gaps for job applicants are critical thinking/problem solving (53%), professionalism/work ethic (46%), written communications (41%) and leadership (38%).
This document outlines a research proposal on evaluating the role of professionalism in the adoption of Human Resource Information Systems (HRIS) in the Nigerian public sector. It begins with defining professionalism and discussing its importance in HR management and how HRIS can be an effective HR tool. It then examines factors that influence organizational technology adoption, including technological, organizational, environmental contexts. It proposes that professionalism be considered an evolving contextual factor and presents a conceptual framework. The research aims to determine the impact of professionalism on HRIS adoption in Lagos State Civil Service and develop an adequate conceptual model. It will utilize a survey of 5 directorates of the civil service commission.
As part of MOVE Week you can organise your public events by this concept that has been implemented in Plovdiv for MOVE Week 2015 and proved as a good practice.
Като част от MOVE Week 2016 може да използвате концепцията за MOVE Week/end, която беше тествана от BG Бъди активен в Пловдив по време на MOVE Week 2015 и се доказа като добра практика.
Награждаване на Най-активните Агенти на движението и Най-активните училища от MOVE Week 2015. Повече информация можете да намерите на нашия уебсайт: www.bgbeactive.org Ако желаете да станете част от MOVE Week и кампанията NowWeMOVE се свържете с нас на: beactive@bgbeactive.org
How does an organization like Comcast go about creating a holistic learning experience for its employees that is customized, scalable and as easy-to-access as Google search? Join Eric VanDerSluis of Comcast and Juan Ruiz-Hau of SurePeople in this interactive webinar to discuss how the Fortune 50 company adopted a mindset of innovation to help learners share accountability for their careers.
In this webinar, participants will learn:
The Comcast approach to building leaders to build the bench.
How Comcast is encouraging employees to own their career development.
A simple yet effective model for personal and professional development.
This document summarizes a research paper that analyzes the effectiveness of electronic human resource management (e-HRM) compared to traditional HRM. The study was conducted among 45 employees of public organizations in Moradabad, India. The study found that e-HRM is more effective and convenient than traditional HRM. It also found that employees were generally satisfied with e-HRM processes and felt it made their work easier. The paper concludes that e-HRM enhances workability for employees through different activities, policies and procedures compared to traditional HRM.
2014 workplace flexibility_survey_overview of fw_asSHRMRESEARCH
The survey found that among organizations offering flexible work arrangements (FWAs):
- About half offered sabbaticals, paid time off for volunteer work, and part-time/reduced hour schedules formally. Most other FWAs were offered informally.
- Over half reported that paid/unpaid time off for volunteer work, break arrangements, transition periods after life events, and flex time with core hours were available to all or most employees.
- Organizations reported that typically only 1-25% of eligible employees used each FWA offered.
- At least four-fifths found 13 out of 17 FWAs to be somewhat or very successful.
The document summarizes findings from a SHRM survey on flexible work arrangements (FWAs). Key findings include:
1) Many organizations have not established methods to measure the impact of FWAs on outcomes like recruitment, retention, employee experience, and organizational success.
2) Respondents indicated that industry standards, benchmarks, and analytics training would be useful for implementing FWA measurement plans.
3) Factors like support from top management and a supportive culture were seen as very important to FWA success, while gradual implementation and participation from all levels were seen as less important.
4) FWAs were reported to have a positive impact on areas like recruitment, retention, employee morale, and the organization's
The survey found that while the percentage of organizations engaging in sustainable workplace practices has remained stable over the last two years, there were some small declines in certain socially and environmentally responsible activities. However, there was a slight increase in organizations calculating a positive return on investment from their sustainability efforts. Key findings included that about 72% of organizations engage in sustainability, and it is seen as important for attracting and retaining talent. Large organizations and those in certain sectors were more likely to have sustainability policies and practices.
This document summarizes the hidden costs associated with managing HR processes internally. It finds that the average company spends over $2,000 per employee per year on payroll, benefits, and HR administration alone when managing these processes internally. Hidden costs, like system maintenance and indirect labor, account for 63% of total spending. Outsourcing individual HR processes fails to reduce total costs of ownership, as integration between systems introduces additional expenses. The document advocates taking a holistic approach to HR that considers processes, technology, and people in order to gain efficiencies and better control costs.
The document summarizes the findings of a SHRM survey on job analysis activities. It found that the most common methods used to conduct job analyses were interviews, observation, and structured questionnaires. Organizations most commonly collected information on knowledge, skills, abilities, and tasks. This information was primarily used for recruitment, performance standards, and compensation. Job analyses were conducted most for management, nonexempt, and professional nonmanagement positions.
The document summarizes key findings from a SHRM survey on internships:
- Nearly two-thirds of organizations hired interns in 2013, with most hiring between 1-10 interns. About one-third offered more internships compared to 2012.
- The majority (89%) of internships are offered to undergraduate students, half to graduate students, and 17% to high school students. Most high school and undergraduate internships are summer internships.
- Two-fifths of organizations have an internship coordinator, most of whom (80%) work in the HR function. HR also provides guidelines for intern work in 69% of organizations.
GESNA - Human Capital Insights Magazine - Volume 5Stacy Klein
This document discusses several strategies that large companies are using to increase employee happiness and productivity. It begins by explaining how happy employees are 12% more productive while unhappy employees are 10% less productive. It then provides examples of how some companies, like Intuitive Research and Technology Corporation, focus on bonuses and profit sharing, certification training, health programs, benefits for veterans, and general benefits allowances to boost employee satisfaction. The document concludes by advising HR leaders to focus on screening, recognition, work-life balance, workplace friendships, and playing to employee strengths in order to maximize happiness and retention while minimizing costs from lost productivity and turnover.
- According to HR professionals, 61% of employees have fair or poor financial health, with those at organizations with more hourly workers faring worse. Employees aged 25-34 experience the most financial stress.
- Most employees have some level of financial literacy, though those at organizations with more hourly workers tend to be less literate.
- Common benefits offered are retirement planning and loan products from third parties. HR professionals report that these benefits positively impact employees' ability to manage financial difficulties.
- Financial stress can impact work through absenteeism, requests for pay advances, and may eventually lead to wage pressure or benefit changes to better support stressed employees.
This document discusses the financial opportunities of outsourcing human resources functions to a Professional Employer Organization (PEO). Key points include:
- Outsourcing HR to a PEO can save businesses significant time by consolidating transactional HR tasks and responsibilities with a single provider. Surveys found businesses saved an average of 23-48 hours per week depending on company size.
- This time savings provides opportunities to reduce operating costs by eliminating HR staff, or to generate additional revenue by redeploying staff to core business activities. One example found potential bottom line savings of $60,372 and top line gains of $112,320 annually for a company outsourcing to a PEO.
- PEO
The document summarizes key findings from a SHRM survey on the aging workforce. Some of the main findings include:
- HR professionals see the top advantages of older workers as their experience, maturity, and strong work ethic.
- The strongest basic skills of older workers are seen as writing, reading comprehension, and spoken English. The strongest applied skills are professionalism, critical thinking, and lifelong learning.
- Many organizations are increasing training to address potential skills gaps from retiring older workers, but 1/3 have taken no steps to prepare.
- Over half of organizations are using knowledge transfer strategies like training programs to share older workers' knowledge with younger employees.
The document discusses the key findings of a SHRM survey on the aging workforce and recruitment and retention. Some of the main findings include:
- Over 40% of organizations indicated the increasing age of their workforce has not prompted changes to retention, recruiting, or management practices.
- The most common methods for directly recruiting older workers were employee referrals and networking, while over half of organizations do not actively recruit older workers.
- Flexibility in work location, career, and hours were among the most challenging factors for retaining older workers.
- Two-thirds of organizations employ older workers who previously retired from other careers or organizations, though most comprised only 1-20% of the workforce.
The Aging Workforce -State of Older Workers in U.S. Organizationsshrm
This document summarizes the key findings of a SHRM survey on the aging workforce in U.S. organizations. The survey defined older workers as those aged 55 and older and found that most organizations and employees consider someone an older worker between ages 50-64. It also found that while over a third of organizations are examining policies to address aging workforces, around half do not see potential talent losses from retirement as problematic currently. Additionally, around half of organizations track retirement eligibility within 5 years.
The document provides details about a study conducted on the performance appraisal system of Tata Consultancy Services (TCS). It includes an introduction to TCS, objectives and scope of the study, methodology used which involved questionnaires and interviews, data collection including demographics of respondents, analysis of the questionnaire responses, and literature review on performance appraisal systems. The key findings were that the bell curve-based appraisal system used by TCS creates stress, destroys loyalty, and has led to high attrition rates. Respondents generally felt the system was unfair and a demotivator.
This document discusses employee attrition (turnover), which refers to employees leaving their jobs. It provides definitions of attrition and attrition rate. Some of the key reasons for attrition discussed include higher pay elsewhere, poor working conditions, lack of career advancement opportunities, and personal reasons. Specific to the insurance industry, the document notes attrition rates of 35-40% for agents due to the high-pressure nature of the work and difficulties sustaining business over time. Calculating accurate attrition rates can be challenging for organizations.
The Ongoing Impact of the Recession—Recruiting and Skill Gapsshrm
Two-thirds (66%) of organizations that are currently hiring full-time staff indicated that they are having a difficult time recruiting for specific job openings, an increase from 52% reported in 2011. HR professionals indicated that the top four applied skills gaps for job applicants are critical thinking/problem solving (53%), professionalism/work ethic (46%), written communications (41%) and leadership (38%).
This document outlines a research proposal on evaluating the role of professionalism in the adoption of Human Resource Information Systems (HRIS) in the Nigerian public sector. It begins with defining professionalism and discussing its importance in HR management and how HRIS can be an effective HR tool. It then examines factors that influence organizational technology adoption, including technological, organizational, environmental contexts. It proposes that professionalism be considered an evolving contextual factor and presents a conceptual framework. The research aims to determine the impact of professionalism on HRIS adoption in Lagos State Civil Service and develop an adequate conceptual model. It will utilize a survey of 5 directorates of the civil service commission.
As part of MOVE Week you can organise your public events by this concept that has been implemented in Plovdiv for MOVE Week 2015 and proved as a good practice.
Като част от MOVE Week 2016 може да използвате концепцията за MOVE Week/end, която беше тествана от BG Бъди активен в Пловдив по време на MOVE Week 2015 и се доказа като добра практика.
Награждаване на Най-активните Агенти на движението и Най-активните училища от MOVE Week 2015. Повече информация можете да намерите на нашия уебсайт: www.bgbeactive.org Ако желаете да станете част от MOVE Week и кампанията NowWeMOVE се свържете с нас на: beactive@bgbeactive.org
How does an organization like Comcast go about creating a holistic learning experience for its employees that is customized, scalable and as easy-to-access as Google search? Join Eric VanDerSluis of Comcast and Juan Ruiz-Hau of SurePeople in this interactive webinar to discuss how the Fortune 50 company adopted a mindset of innovation to help learners share accountability for their careers.
In this webinar, participants will learn:
The Comcast approach to building leaders to build the bench.
How Comcast is encouraging employees to own their career development.
A simple yet effective model for personal and professional development.
Workforce Intelligence: How HR Can Make Data-Driven Decisions That Move the N...Human Capital Media
The idea of data-driven HR has been a top topic and trend for several years now, yet the vast majority of HR organizations are still underserved with insights. While many organizations are thinking about workforce analytics, few have truly put them to work. Indeed, as Josh Bersin of Bersin by Deloitte aptly described, most HR organizations are “stuck in neutral” with workforce analytics, unsure how to get started with this complex topic.
How can you get out of neutral with workforce analytics? How can you and your organization overcome the data hurdles and technical complexity -- despite having little or no experience in analytics? How can you get to workforce insights that will help you understand with precision what it takes to recruit, retain, and motivate the best workforce -- and drive measurable business outcomes?
In this webinar, analytics expert Ian Cook will provide direct examples of you can take to:
Improve recruitment success and more efficiently find expertise needed at the right time for the best price.
Retain star performers more cost effectively.
Connect employee engagement to business outcomes.
Decode workforce planning and understand the “cost” side of the workforce.
200 children participated in a Children's Day celebration jointly organized by the Kerala Science and Technology Museum and Coin A Day Childcare Foundation at the Planetarium of Trinity College of Engineering on November 13, 2016. Trinity College of Engineering conducted an aptitude test and career guidance session on November 12th and 13th that included an Amazon Online Exam and training program on gate preparation. The college also provided preparation guidance for the Higher Secondary Exam to students of PTM Higher Secondary School.
The 10-step marketing plan outlines Restor-F's strategy to target active, health-conscious adults over 13 seeking to boost mental and physical function. Restor-F positions itself as the only supplement combining multiple vitamins and minerals. It will price capsules 60% higher than competitors and distribute nationwide through drugstores, gyms, and health-related partnerships, targeting the PhP15M niche market. The goal is to dominate this niche through Restor-F's unique formulation.
Corporate training isn’t always a cure-all for every company problem. Learn the myths and facts behind improving workplace performance with corporate training.
Hidden Reality of Payroll & HR Administration CostsRichelle Massé
1. The study found that the total cost of ownership for in-house administration of payroll, workforce administration, time & attendance, and health & welfare benefits is surprisingly high, averaging over $1,400 per employee per year for large organizations and nearly $2,000 per employee per year for mid-size organizations.
2. Contrary to expectations, administration costs have actually increased rather than decreased since 2003 despite technological advances, as organizations have focused more on technology transformation than process transformation.
3. Outsourcing these functions continues to provide overall cost advantages, reducing total cost of ownership by an average of 18% compared to in-house administration.
4. Utilizing a common vendor or solution to manage
The document summarizes a study on the total cost of ownership (TCO) of payroll and human resources (HR) administration for organizations. Three key findings are:
1. Administering payroll, workforce administration, time & attendance, and health & welfare benefits in-house requires a large commitment of resources, typically over $1,400 per employee per year for large organizations and nearly $2,000 per employee per year for mid-size organizations. Hidden costs account for over 50% of the TCO.
2. Contrary to expectations, the TCO of payroll is increasing despite technological advances as organizations focus more on technology than process transformation.
3. Outsourcing payroll and HR functions reduces
Attached is a study conducted by PriceWaterhouse Coopers that I thought you would be interested in. It talks about the hidden cost of payroll, time and labor, health and welfare, and workforce administration. There are 7 areas that many executives overlook when analyzing true cost of ownership. The cost areas are system installations, system upgrades, system maintenance, process cost, direct labor, direct non labor and indirect labor costs.
In-house vs. Outsourced Payroll Processing: Separating Fact from FictionAdrian Boucek
By linking payroll, HR, talent, benefits and time & labor management, an integrated HCM solution can deliver all the perceived benefits of in-house processing with significant added advantages — including superior economies of scale, improved visibility, real-time processing, world-class security and protection against compliance risk.
HR is at a critical stage in its journey - from transactional back-office operator to true business partner. But the function has hit a roadblock. Recent research suggests that in many companies HR teams are still not adding as much value to the business as they could.
HR information system project Comment feedback concerning the .docxadampcarr67227
HR information system project
Comment feedback concerning the content and grammar can be found in the bullet points on the paper. Details concerning all APA format items can be found on the spreadsheet. Great job with identifying the affected stakeholders. Nicely done with the list of information gathering techniques such as interviews, observations, questionnaires, and additional research. For the feasibility study, this would have been better to discuss how you would measure the possible success of the project. Just stating it will be a “quantifiable profit” does not indicate how much money is involve or how long it will take to realize those profits. Normally a study such as this is not done by the business users. Sometimes a systems analyst will perform these studies. Using examples of how other companies have saved money or how long it took to implement a similar solution can show value in moving forward. Good on the gathering information and documenting section; however, that is not a guarantee that all of the requirements have been identified. One way that can help is to have the development team create prototypes to show the business. These preliminary examples can help to uncover any missing functionality that might need to be included in the final product. Overall you did very well on this first assignment. HR Information System Project
SHARON EDLUND
February 23, 2015
Introduction
Riordan Manufacturing HRIS framework was secured in 1992. Their HR framework was intended to track workers' data. For example, their individual data, pay rate, individual absolution for tax purposes, contract date and vacation hours and so forth. While then again Riordan lawful framework and activities are taken care of by Litteral & Finkel. Litteral & Finkel gives lawful administrations like tax law, land transactions, employee law, migration matters, and work law and custom regulations. In this paper we will examine the HR framework reconciliation with tools to make a single coordinated application. The organization ought to have more particular data systems technology (Thite.et.al, 2008). This paper will recognize and portray existing and required business frameworks and subsystems. Comment by Owner: Great! Comment by Owner: It is unclear what “to have more particular data systems technology” means.
Riordan Manufacturing is a worldwide plastic producer utilizing 550 individuals with the yearly profit of $46 million. The organization is completely claimed by Riordan Industries, a Fortune 500 organizations. The major stakeholders in the company include; the company president and its CEO the chief operating officer, the vice president of research and development, the sales and marketing vice president, the human resources director, the chief financial officer, the company employees, customers and managers will enable provide information for the HR information systems. Comment by Owner: Good on the stakeholders.
Information gathering tec.
Save Money and Enhance Productivity with HR OutsourcingInsideUp
Outsourcing HR functions can provide cost savings and allow companies to focus on core business processes. Common HR functions that are outsourced include payroll, benefits administration, and legal services. While outsourcing has advantages like reduced costs and increased productivity, disadvantages include potential loss of confidential employee data and lack of face-to-face communication with employees. Companies should research potential providers carefully to find one that can meet service level agreements and comply with regulations.
The document discusses how technology is disrupting HR practices such as recruitment and healthcare spending. A survey found that 73% of companies' recruitment processes have changed in the last two years due to technology. While technology can automate some tasks, humans are still needed to make final decisions. The document recommends that HR professionals become proficient in data analysis to adapt to these changes. It also provides statistics on companies' recruitment budgets and tool investments.
The document discusses future metrics for measuring the impact and effectiveness of HR. It begins by outlining three levels of metrics: efficiency, effectiveness, and impact. Efficiency measures resources and investments, effectiveness examines policies and practices, and impact evaluates the link between human capital and business success.
It then examines the changing role of HR from administrative expert to strategic partner. While more HR professionals see themselves as strategic partners, time spent on strategic activities has not increased. The document also reviews internal and external benchmarks for measuring HR. Finally, it emphasizes the need to demonstrate how HR drives business performance through impact metrics that link human capital to value creation.
Cost reduction is the process used by companies to reduce costs and increase profits. It involves strategies that depend on the company's products and services, and every decision in product development affects costs. HR can help reduce costs through strategies like hiring and retaining top talent to reduce turnover costs, improving training and mentoring to prevent issues, automating manual processes, offering flexible benefits to attract workers, reducing workplace risks, and outsourcing some HR functions.
The document discusses various ways that an organization can control and evaluate the effectiveness of its human resources department and functions. It provides metrics that can be used to assess recruitment and selection, training and development, attrition management, welfare management, and compensation management. Techniques like surveys, audits, and human resource information systems are also discussed as ways to control HR processes and ensure alignment with organizational goals.
Solving Payroll Problems With The New Employee Management System- Business.c...Business.com
For a more robust employee management system through your payroll services providers, you may choose to add benefits management, 401(k) management, or other enhancements to the basic payroll processing service. Here are some common HR obstacles and ways in which payroll services can mitigate these challenges.
University of DaytoneCommonsHonors Theses University Hon.docxouldparis
University of Dayton
eCommons
Honors Theses University Honors Program
11-2017
A Case Study on Inventory Costing Methods
Natalie Hunton
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A Case Study on Inventory
Costing Methods
Honors Thesis
Natalie Hunton
Department: Accounting
Advisor: Marsha Keune, Ph.D.
November 2017
A Case Study on Inventory
Costing Methods
Honors Thesis
Natalie Hunton
Department: Accounting
Advisor: Marsha Keune, Ph.D.
November 2017
Abstract
Firms use costing methods to determine the price of a product and to analyze the efficiency of resource
consumption. These methods often comply with the external financial reporting rules set forth by the U.S.
Generally Accepted Accounting Principles (GAAP), which require all manufacturing costs, including
overhead, to be assigned to goods in inventory for costing purposes. However, firms can internally use
alternative costing methods that do not comply with GAAP. The purpose of this case study is to understand
and evaluate the costing method currently employed by a company in the Dayton, OH area1, and identify
the most beneficial costing method for its circumstances. Background research on common costing
methods including traditional, process, job, activity-based, and variable is used to analyze the Company’s
costing method. This background research includes each costing method’s advantages and disadvantages
along with circumstances that help dictate the use of each method. This research is combined with research
on the Company to develop expectations regarding the Company’s current costing method and to develop
an interview g ...
An Overview of Human Resource Outsourcing.pdfKatie Robinson
This document provides an overview of human resource outsourcing. It defines human resources, outsourcing, and human resource outsourcing. It discusses the history of outsourcing and categories of human resource outsourcing such as professional employer organizations, business process outsourcing, and application service providers. Trends in human resource outsourcing are also examined, such as a growing focus on cost savings and expertise rather than just cost savings alone. Hybrid models that use a mix of in-house and outsourced human resource functions are becoming more common.
This research brief looks at the trends influencing workforce rostering today and how rostering interacts with other critical workforce management systems, including payroll, time and attendance, and absence management to achieve business results.
HealthCare System EHR Governance Information Discussion.pdfsdfghj21
This document discusses establishing an information governance program to optimize an electronic health record (EHR) system. It provides an example of Hawaii Pacific Health, which focused on improving data quality and standardizing definitions to decrease costs and improve clinical quality. The summary discusses that an information governance program sets accountability and priorities for managing health system data and information assets. It also notes that executive support is important to establish a successful long-term information governance program.
HR Software Buyers Guide in 2024 - HRSoftware.comFatema Valibhai
Introduction: Data & Information needs for HR Manager; Sources of Data; Role
of ITES in HRM; IT for HR Managers; Concept, Structure, & Mechanics of
HRIS; Programming Dimensions & HR Manager w
Similar to PwC_TCO whitepaper_Exposing the hidden cost of payroll and HR administration_201203 (20)
3. 3
Do you know how much
your organization is really
spending on HR processing?
You may not be considering
“hidden” costs related
to administering these
important processes, and
as a result, may be spending
more than you think.
In this white paper, we’ll identify:
• The different cost drivers of payroll,
time attendance, HR data
administration and health benefits.
• Strategies that allow some
organizations to more cost-effectively
deliver these functions.
PwC Canada was commissioned
by ADP Canada Co. to study and
shed light on these costs. Our key
finding is that outsourcing leads to
cost efficiencies. We have found that
organizations underestimate the true
expense (the “total cost of ownership,”
or TCO) of processing and managing
payroll, time attendance, HR data
administration and health benefits.
Many organizations identify costs
that are easily recognizable, such
as processing staff and technology
acquisition costs, but fail to recognize
“hidden” costs necessary for operating
and integrating these interdependent
processes. Additionally, organizations
often use separate technology and
process solutions to administer each
function without considering how those
solutions work with each other. This
fragmentation drives up administration
costs through task overlap and after-the-
fact technology integration.
Executive overview
4. 4 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Contributors to a higher TCO
Here is a summary of the top cost-
reduction strategies uncovered through
this study, as measured by overall TCO:
Outsourcing
Organizations that outsource the
management of payroll, time
attendance, HR data administration,
and health benefits, spend on average
27% less than those that deliver these
functions using a manual approach.
Using a single vendor strategy
Organizations outsourcing payroll and
time attendance to a single provider
spend 43% less on average than those
administering these functions in-house.
Seams cost
There is a cost associated with the
activities organizations must undertake
to integrate various HR business
processes. Companies that outsource
payroll, while employing other methods
to deliver time and attendance and
HR data administration, spend on
average 21% more than companies
that outsource all three processes to
a single vendor.
Hidden costs
Costs such as indirect labour and system
maintenance are often overlooked.
These hidden costs can represent
more than 50% of TCO.
This study demonstrates the importance
of managing HR service delivery
strategically. It starts with the decision
making process. The true total cost of
ownership will only be apparent when
looking across HR processes, rather than
focusing on a single process in isolation.
A holistic approach that accounts for
people, process and technology will
enable organizations to make sound
decisions on their HR service delivery
strategy, ultimately resulting in lower
overall TCO.
5. 5
This research study is based on data
collected from 125 participating
organizations, ranging in size from
50 employees to more than 5,000
employees. We believe this to be one
of the largest and most comprehensive
studies of its kind ever conducted
in Canada.
The goal of this study is to measure
the Total Cost of Ownership (TCO) of
four core business functions—payroll
(PR), time attendance (TA), HR data
administration (HA) and health
benefits administration (HB)—and
to analyze the key factors impacting
the cost of these business functions.
Since this study focused only on TCO,
variability of service levels were not
taken into account.
A confidential, web-based questionnaire
was used to gather data for this
assessment. Senior financial and HR
executives (i.e. CFOs, VPs of HR, VPs
of Finance, Directors of Payroll and
Controllers) were invited to participate.
If an organization had multiple
respondents, we created a single
consistent response. Over-the-phone
support was provided on request for
anyone who needed help to complete
the questionnaire.
PwC also conducted multiple follow-
up calls with respondents to verify,
clean and complete data. This approach
allowed PwC to gather and calculate
total cost of ownership in a consistent
fashion and laid the foundation for
the comparative analysis captured
in this report.
Methodology
6. 6 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Profile of participants
A total of 125 organizations participated
in this study.
Due to the economies of scale that
usually exist in larger organizations
(which are discussed within this study),
it was important to differentiate between
mid-size and large organizations.
The term “outsourcing” in this paper
specifically refers to outsourcing to ADP.
ADP clients were surveyed to measure
the TCO of organizations outsourcing
payroll, time attendance, HR data
administration and health benefits.
The study did not evaluate, and findings
cannot be directly applied to ADP’s HR
business process outsourcing offerings.
PwC makes no representation that the
comparative key findings of this survey
can be generalized to other payroll and
HR service providers.
The organizations surveyed use a
wide range of platforms and solutions.
Many in-house clients operate these
processes manually.
All participating organizations are
Canadian companies or subsidiaries
within 18 industry categories. The
most prevalent industries were
manufacturing (21%), healthcare and
social assistance (10%), and wholesale
trade (8%).
This white paper has been researched
and prepared by PwC; PwC is the sole
author of this white paper. ADP is the
sponsor of the TCO study, which PwC
conducted in order to prepare this
white paper.
7. 7
The data
The following four processes were the
focus of this study:
Payroll (PR): The process of
collecting and entering data related to
employee hours worked, determining
taxation, calculating gross and net
pay, distributing compensation, and
responding to employee questions
regarding payroll.
Time attendance (TA): The
process of scheduling, collecting,
reviewing, submitting and approving
time reporting data, including employee
hours worked, paid time off (vacation,
illness, holidays) and leave balances.
HR data administration (HA):
The maintenance and administration
of the core HR database (often
referred to as the Human Resource
Information Systems or HRIS) and the
activities associated with maintaining
employee information for payroll,
new hire reporting, health benefits
administration, back-end reporting,
and other HR activities.
Health benefits administration
(HB): The administration of employee
HB programs including: managing
enrolment, terminations, payment
generation and reconciliation, and
status change maintenance.
Respondents were asked to answer
questions that quantified all one-time
and ongoing costs for the areas of PR/
TA/HA/HB administration. The costs
were broken down into three broad
categories: technology implementation
and upgrade; processing; and
technology maintenance. Each cost
component was defined in the survey
and referenced during phone interviews
to capture data in a standard fashion.
PwC contacted participants directly
when data fell outside the normal range
of responses and normalized data
where necessary.
8. 8 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Five key findings surfaced
related to the cost of
administering payroll, time
attendance, HR data and
health benefits.
Reduced per paycheque
expenditure
Outsourcing delivers a reduction
in spend on a per paycheque basis.
Organizations that outsource
payroll spend on average 30% less
per paycheque than those that use
in-house solutions.
Integrating functions such as
payroll and time attendance
can lead to financial benefits
Organizations that use a single
outsourced service provider to integrate
payroll and time attendance spend
on average 43% less versus a manual
approach or one that is not integrated.
Outsourcing multiple functions
delivers cost efficiencies
Organizations outsourcing, payroll, time
attendance, HR data administration,
and health benefits spend on average
27% less than those that use an
in-house approach.
Employing a single vendor
strategy delivers overall
TCO advantages through the
avoidance of seams costs
Companies that outsource payroll, while
employing other methods to deliver
time and attendance and HR data
administration, spend on average 21%
more than companies that outsource all
three processes to a single vendor.
In-house technology
implementation costs
increase TCO
On average, companies that employ an
in-house payroll system spend three
times more on initial implementation
than those that outsource.
We’ll explore in the paper how different
service delivery models and software
options can have a material impact on
technology upgrade and installation
costs of in-house software.
We’ll also explore each of these findings
and their implications for organizations.
Key findings and
recommended strategies to
reduce administration costs
9. 9
In-house administration of payroll, time attendance,
HR data and health benefits requires a surprisingly
large commitment of time and resources.
This study showed that many organizations may be unaware of the true expense of
administering the PR, TA, HA and HB functions, primarily because some costs are
not visible.
Tracking total costs, especially across functions, is difficult because related functions
are often “owned” by different departments in the organization (finance, HR, IT).
Accordingly, many organizations make decisions about technology and sourcing
that work best for an individual function but don’t take into account the potential
synergies and savings that would be achieved with an enterprise-wide solution.
A complete cost analysis should consider:
System installation costs
The one-time costs related to the
initial acquisition and implementation
of an organization’s PR, TA, HA, and
HB systems.
System upgrade costs
The periodic acquisition and
implementation costs related to
upgrading to a more current version of
the PR, TA, HA, and HB systems.
Direct labour costs
The cost of labour (salary plus benefits)
of the direct staff necessary to support
the PR, TA, HA, and HB functions.
Direct non-labour costs
The total costs of consultants,
vendor fees and facilities, general and
administrative expense (GA), and
corporate overhead related to the PR,
TA, HA, and HB functions.
Indirect labour costs
Cost of labour for employees who are
not directly related to the payroll and
HR departments, but support these
functions in the field (i.e., collecting,
approving and preparing employee
hours for payroll; distributing
paycheques; answering employee
questions about benefits, etc.).
Outsourcing costs
The total annual costs of any outsourced
services related to processing of PR,
TA, HA, and HB, such as tax filing,
paycheque printing, etc.
System maintenance costs
The IT costs (labour and non-labour)
specifically related to maintaining the
HR systems.
10. 10 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Economies of scale result in a lower TCO.
Figure 1 shows that when all costs associated with the four
key functions are taken into consideration, large organizations
(more than 700 employees) spend on average $722.46 per
employee per year (PEPY), and mid-size organizations
(50-700 employees) spend $1165.63 PEPY.
Do large organizations achieve greater economies
of scale and experience lower TCO per employee?
Yes—it is no surprise that larger organizations have a
lower average TCO per employee. Economies of scale are
particularly evident when considering the relative labour
cost required to deliver the processes reviewed in this study.
Smaller organizations have fewer, typically more senior
resources that are responsible for business processes covered
in this study. Larger organizations will generally employ a
larger number of entry level staff to run these processes.
Mid-size organizations also tend to have less automated
processes in place. As you will see later in the white paper, the
adoption of outsourcing and software as a service technology
by mid-size companies is anticipated to close the ‘automation
gap’ noted here.
We observed that larger organizations tended to be more
automated because they have the scale to justify the
investment required to move away from manual processes.
That said, larger organizations still realize TCO savings
across the functions in the study for the reasons we outline
later (process improvements, elimination of seams costs, etc.)
despite the benefit of economies of scale.
375.795
218.02
269.255
255.95
228.69
101.49
291.89
146.995
Mid-size companies Large companies
Payroll
Time attendance
HRIS (HR data administration)
Health benefits
$1,165.63
$722.46
Figure 1: TCO PEPY by function
11. 11
Hidden costs
Organizations often fail to consider
several key cost components when
developing a business case to assess a
process or function for outsourcing. The
resulting effect is that the business case
is understated and incomplete. This
error was frequently observed during
the course of this study.
At the outset, TCO survey participants
would only provide those costs that were
top of mind (i.e. visible costs), such as
system installation and direct labour
cost. However, after several follow-
up discussions, hidden costs such as
indirect labour and system maintenance
cost were uncovered. As shown in the
diagram, hidden costs can represent
more than half of the TCO for a
given process.
Intuitively this makes sense. For
example, when HR managers estimate
system maintenance cost, they need to
first consider all of the relevant systems
used by their staff. Next, the manager
needs to identify a contact in IT, who,
in turn, has to source the contract that
contains the system maintenance cost.
Finally, that manager has to allocate
a percentage of the total maintenance
cost to the process under review, a
necessary step as most systems support
many different processes. With so many
stakeholders and business systems, it’s
not surprising that many organizations
omit critical costs and hence are
underestimating their TCO.
Inaccurately completing TCO can also
be misleading. On average, visible costs
represent a higher percentage of TCO for
organizations that have outsourced. As
a result, if an organization considering
human resources outsourcing was
to complete their TCO without
consideration for hidden costs,
their TCO would be overstated
(Figure 2).
Visible costs
Hidden costs63%
37%
Figure 2: Breakdown of TCO by cost type
12. 12 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Seams costs
Business decisions around service
delivery and technology strategy
are often made for a single process
or function without consideration of
the bigger picture. The end product
is a series of disconnected processes
that require manual intervention or
technology integration, resulting in
additional costs that are defined within
this report as “seams costs”.
Organizations are usually unable to
see the technology costs associated
with integrating systems that would
otherwise stand alone. What are also
often missed are the changes in direct
labour cost, especially if a manual
workaround is employed to close a
technology gap.
This study found that while seams costs
exist in many HR departments, these
costs are largely absent in companies
that have outsourced payroll, time
attendance and HRIS to a single
provider. This explains why they spend
on average 21% less than companies
that take a ‘best of breed’ approach
(Figure 3).
Figure 3: Average cost of integrating core HR systems
Denotes integration and data flow required between different HR systems
Organizations with software integration “seams”
have 21% higher TCO per paycheque on average
Payroll
Time
attendance
HR dataadministration
13. 13
Figure 4: Average payroll function TCO per paycheque
Outsourcing results in lower TCO.
Organizations that outsource payroll
spend on average 30% less per
paycheque compared to those that
use in-house solutions (Figure 4).
Furthermore, organizations that
outsource multiple functions also
realize savings. This study shows
that organizations delivering payroll,
time attendance, and HR data
administration in-house, spend on
average 20% more than those that
outsource these functions. The spend
variance demonstrated here aligns
with our previous conclusion around
“seams costs”—there are benefits to
managing multiple HR processes with
a single provider.
In Canada, it is common for the insurer
to provide the technology required to
offer health and benefits coverage. As
a result, this study only identified a few
clients that delivered payroll, time and
attendance, HR data administration
and health and benefits using a
common system or service provider.
In the Canadian market, traditional
HR service providers, such as ADP,
are developing their offerings in the
health and benefits space. As a result,
we anticipate that organizations will
move toward integration of these four
functions to achieve further savings.
Presently, organizations that outsource
payroll, time and attendance and HR
data administration to ADP, along with
health and benefits to an insurance
provider, spend 27% less than those
that do not outsource.
ADP In-house
$17.09 $22.07
30%
higher
TCO
Organizations
outsourcing
payroll to ADP
Organizations
managing payroll
in-house
14. 14 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Integrating functions such as payroll and time
attendance leads to financial benefits.
There are benefits associated with
integrating payroll and time
attendance. Why? If time is captured
on paper or using some other system,
human intervention is often required
before the time data can be used to
run payroll. This human intervention
increases the risk of error. For example,
if time is captured on paper, a simple
data entry error can result in a pay
discrepancy. If the error is uncovered an
adjustment will be necessary, which will
involve yet further human intervention.
Organizations also run the risk of
alienating employees that are negatively
affected by these pay discrepancies.
The savings driven by integration
were particularly evident in this
study. Organizations that use a single
outsourced service provider to integrate
payroll and time attendance spend
on average 43% less than a manual
approach or one that is not integrated
(Figure 5).
Figure 5: TCO (per paycheque) comparison by method across payroll and time
attendance
ADP In-house
$27.78 $39.82
43%
higher
TCO
Organizations
outsourcing
payroll, time
attendance
to ADP
Organizations
managing
payroll, time
attendance
in-house
15. 15
We anticipate the adoption of SaaS technology will grow in
Canada, driven in part by lower TCO.
PwC’s industry analysis suggests that
HR-related technology adoption in
Canada is lagging behind the U.S.
market. The results of this study
confirmed that. This is particularly
evident in the HR data administration
function where, overwhelmingly,
respondents either use ADP’s Software
as a Service (SaaS) offering or operate
this function manually. Our research
indicates that Canadian companies are
either staying with an inefficient manual
approach to HR data administration
or they are looking to adopt a next
generation SaaS approach, effectively
“leap-frogging” over a traditional in-
house software implementation.
The key reason for this is that there
are costs associated with customizing,
implementing and maintaining an HRIS
software solution. The investment is
particularly difficult to justify in Canada
as the average company lacks the
economies of scale needed to justify the
expenditure. However, the emergence
of SaaS solutions from providers such as
ADP is providing Canadian companies
with a way to access the capabilities
provided by an HR information system
without incurring the costs traditionally
associated with implementing and
maintaining an HR information system.
The survey revealed that approximately
40% of ADP clients currently use the
ADP HRIS as a service package. In
comparison, 10% of ADP clients use a
commercial off-the-shelf HRIS package.
The results of this study confirmed the
value of employing an ADP solution,
as respondents that installed and
maintained HRIS in-house spend
19% more on average than those
that outsource to ADP.
In the coming years, we expect HRIS as
a service adoption in Canada to increase,
which will further result in better
solutions and pricing for customers.
We expect companies operating HR
data administration manually to
move towards SaaS solutions, in part,
because they will not be able to justify
the investment required to procure and
maintain an in-house software solution.
In addition, efficiencies are realized
through the outsourcing of the domain,
regulatory and process expertise to
third-party vendors like ADP who
possess an outsourcing service model
that delivers this expertise and support
back to their clients.
16. 16 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
Companies that outsource spend three times less
on implementation.
To automate payroll, for example, an
investment is normally required. There
are two broad approaches to automate:
(1) outsource services to a third-party
that provides technology to automate
the process and a strong service
model to support it; (2) implement a
technology solution in-house. Notably,
on average, respondents that outsource
payroll (i.e. option #1) spent three
times less on implementation than
those that implement an in-house
technology solution. The outsourced
service provider is able to offer a
lower implementation cost for two
key reasons:
Less customization
The outsourced service provider
has control over the technology and
process. They build their technology
to enable their process and optimize
service delivery. When an organization
implements a commercial off-the-
shelf solution, costly customization
is often required to meet ‘unique’
business requirements.
Lower costs
For companies like ADP that specialize
in delivering payroll services, the cost
associated with developing the payroll
technology portion of their offer is
spread across a broad base of customers.
This drives the overall cost down
on average.
In addition to cost savings, it is
important to look at the longevity
of a SaaS solution.
17. 17
Organizations stay with an outsourcing provider’s SaaS
technology longer than the alternatives.
Long periods of customer retention
suggest that the outsourcing model
is here to stay. The average payroll
customer employing an outsourced
SaaS-based solution had been with
the same provider for about 10 years.
In comparison, the average customer
employing an in-house payroll solution
had only been using the same solution
for six years. A primary reason for
this difference can be linked to
upgrade costs.
In the outsourcing model, the provider
is responsible for maintaining and
upgrading their products and staying
on top of legislative changes, regulatory
requirements and compliance elements
that would otherwise fall to the
individuals in an in-house scenario.
This process is largely seamless to the
customer and generally does not involve
periodic upgrade surcharges because
of the SaaS one-to-many deployment
model. For companies that have
employed a commercial off-the-shelf
solution, upgrades can be a headache.
First, in order to receive the upgrade, the
provider will request a one-time charge.
In many cases, third-party consultants
are also needed to manage the upgrade
installation process, resulting in yet
further cost. Finally, many years after
the original installation, the provider
may cease to support the product, which
will necessitate investment in another
solution altogether. ADP solutions
allow companies to avoid all of these
problems and leverage its domain
expertise in the areas of payroll, HR data
administration, time attendance and
benefits management services.
As companies review their system
investments both past and future, we
expect to see a further shift towards
outsourced SaaS offerings in the market.
18. 18 Exposing the hidden cost of Payroll and HR Administration. A total cost of ownership study.
This study demonstrates the importance of managing HR service
delivery strategically. It starts with the decision-making process. The
true total cost of ownership will only be apparent when looking across
HR processes, rather than focusing on a single process in isolation.
Organizations that fail to do so will underestimate the ‘seams cost’
associated with integrating their various HR processes. These same
organizations often omit ‘hidden costs’, such as system maintenance,
which may ultimately lead an organization down to an inaccurate TCO
conclusion. A holistic approach that accounts for people, process and
technology will enable organizations to make sound decisions on their
HR service delivery strategy, ultimately resulting in lower overall TCO.
Conclusion