The manual,
error-prone and labour-intensive reality

The manual, error-prone and labour-intensive reality

As highlighted in the CPCR, payroll processes still rely heavily on manual work, making them labour-intensive and prone to errors.

What is used to process payroll?

^Source:^{Strada’s 2024 Company Payroll Complexity Report (CPCR)}

The problem with this inertia – and dependence on manual processes despite cloud technology – is further underlined in Workday’s latest SAGP research which found frequent payroll reruns and off-cycle payments are significantly impacting organizations.

The research also identified that payroll teams, typically comprising of 26 members, often need to invest extra time and effort to correct errors, resulting in approximately 345 reruns annually.

These errors not only increase the workload but erode employee trust and satisfaction.

Approximately how many employees process and/or manage payroll, including taxes, within your organization?

In the past 12 months, approximately how many off-cycle payments has your organization made due to errors, on average?

^Source:^{Workday’s Strategic Ascent of Global Payroll (SAGP)}

Additionally, there’s a real risk of non-compliance, with CPCR finding that 53% of companies had received a government fine or penalty in the last five years.

Perhaps most critically, the valuable time and resources spent on fixing errors detracts from opportunities to analyse workforce data, thereby limiting payroll’s potential to contribute strategically.

Have you received a penalty in the last 5 years for payroll non-compliance?

^Source:^{Strada’s 2024 Company Payroll Complexity Report (CPCR)}

With 42% of respondents in Workday´s SAGP saying errors are caused by HR processes being out of sync, there’s a significant opportunity for organizations to transform their payroll processes by adopting new technologies that factor in the human aspect.

By understanding how processes work, how different departments interact, and where data is stored, companies can move from manual, fragmented systems to a more integrated and cloud-based operation.

HR and payroll leaders have a crucial role to play here, demonstrating leadership by embracing technology to solve problems while ensuring human connection and integration remain at the forefront.

Why does retroactive payroll need to be undertaken in your organization?

^Source:^{Workday’s Strategic Ascent of Global Payroll (SAGP)}