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Nine Practices of High- Performing Global Payroll Organizations A Study in Strategic Global Payroll

ADP Global Payroll Benchmarking

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Page 1: ADP Global Payroll Benchmarking

Nine Practices of High-Performing Global PayrollOrganizations

A Study in Strategic Global Payroll

Page 2: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.2

High-Performing Organizations…

MultinationalOrganizations:

1. 5,000+ Employees

2. 500+ Employees

Page 3: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.3

Nine Practices of Top-Performing Organizations

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.3

Global Service Delivery

Global SystemsRationalization

Global StrategicMindset

1. Global Service Delivery Model

2. Recent Service Delivery Transformation

3. Global Lines of Authority

4. Consolidated Global Systems

5. Hybrid Sourcing Strategy

6. Payroll Self-Service Driven by HCM

7. Minor Staff Realignment

8. Advanced Metrics

9. Strategic Global Mindset

Page 4: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.4

Drive for Efficiency

High-Performing Organizations Balance Efficiency to Drive Greater Innovation

Pursuit of Innovation

Page 5: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.5

Balance, Not Compromise

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.

Page 6: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.6

Balance efficiency gains lead to greater innovation enhancements

Find greater efficiencies in global payroll

Leverage innovative practices in global payroll

High Performing Organizations…

Page 7: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.7

Efficiency-Innovation Model

Page 8: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.8

Leverage global and regional service delivery models

Capitalize on efficiencies through standardization

Maintain flexibility by implementing regionalservice centers

Have recently undergonetransformation of theirservice delivery model

High Performing Organizations…

Page 9: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.9

High Performing Organizations…

High-PerformingOrganizations

Low-Performing Organizations

utilize a global service delivery model for global payroll

20%

#1

Page 10: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.10

High Performing Organizations…

High-PerformingOrganizations

Low-Performing Organizations

have more recently transformed to a newService Delivery Model for global payroll

53%

#2

Page 11: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.11

High Performing Organizations…

have payroll leaders withglobal accountability

High-PerformingOrganizations

Low-Performing Organizations

10%

#3

Page 12: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.12

Does your payroll organization have:

Local accountability?

Regional accountability?

Global accountability?

Poll

Page 13: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.13

Have recently deployed a global servicedelivery model for global payroll

Give global payroll teams visibility and accountability across the entire enterprise

Establish global lines of authority for payroll

High Performing Organizations…

Page 14: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.14

High Performing Organizations…

are consolidating theirpayroll vendors globally

High-PerformingOrganizations

Low-Performing Organizations

42%

#4

Page 15: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.15

Eliminate multiple local vendors to gain organizational efficiency

Benefit from maturing of global payroll vendors

Deliver payroll services across the globe without depending on local vendors for expertise

High Performing Organizations…

Page 16: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.16

High Performing Organizations…

adopt a hybrid sourcing strategyfor global payroll

High-PerformingOrganizations

Low-Performing Organizations

13%

#5

Page 17: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.17

Tend to pursue a hybrid global payroll strategy – balancing insourcing and outsourcing of services

Choose the best sourcing strategy for their diverse organizational needs

Take advantage of economies of scale

High Performing Organizations…

Page 18: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.18

Does your organization drive payrollself-service through:

HR system?

Payroll system?

Other system?

Not at all?

Poll

Page 19: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.19

High Performing Organizations…

are less likely to provide self-service through their payroll system

High-PerformingOrganizations

Low-Performing Organizations

10%

#6

Page 20: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.20

Take advantage of self-service through a global HCM system

Place key integrations between HR and payroll systems

Provide a single consistent interface for system users to lower learning curve and increase adoption

High Performing Organizations…

Page 21: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.21

High Performing Organizations…

Experience less payroll staff realignment and headcount reductions when outsourcing

High-PerformingOrganizations

Low-Performing Organizations

43%

#7

Page 22: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.22

Re-deploy staff to more strategic areas of the business

Achieve their global sourcing goalswith fewer disruptions

Are more efficient and hence can afford to retain more staff

High Performing Organizations…

Page 23: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.23

High Performing Organizations…

use advanced metrics to manage quality and make decisions

High-PerformingOrganizations

Low-Performing Organizations

23%

#8

Page 24: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.24

Establish a comprehensive set of operational metrics

Use analytical methods to guide business decisions

Use root cause analysis to maintainquality standards

Focus on leading andpredictive indicators

Guide business strategy through tangible facts

High Performing Organizations…

Page 25: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.25

High Performing Organizations…

foster a global and strategic mindsetacross their payroll staff

High-PerformingOrganizations

Low-Performing Organizations

36%

#9

Page 26: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.26

Place greater emphasis on building globaland regional payroll teams, not focusedsolely on clerical/operational tasks

Involve payroll staff in higher level strategic activities

Foster strategic competencies among field payroll teamsand offer rotational assignments for

development

High Performing Organizations…

Page 27: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.27

High Performing Organizations…

Efficiency Innovation

Strategic Global Mindset (#9)

Advanced Metrics Framework (#8)

Minor Staff Realignment (#7)

Payroll Self-Service Driven by HCM (#6)

Hybrid Sourcing Strategy (#5)

Consolidated Global Systems (#4)

Recent Service Delivery Transformation (#2)

Global Service Delivery (#1) and

Accountability (#3)

Are defying the global strategic payroll paradox and

pursing BOTH efficiency and innovation

Page 28: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.28

Balance, Not Compromise

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.

Page 29: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.29

How to Engage

Download the Executive Summary for more information on this research:

www.adp.com/globalbenchmarking

Contact Jeitosa to participate in the global benchmarking study:

[email protected]

Contact ADP sales to learn more about making Global Payroll work for you:

[email protected]

Page 30: ADP Global Payroll Benchmarking

© Copyright 2013 ADP, Inc. and Jeitosa Group International. Proprietary and Confidential Information.30

Balance, Not Compromise

© Copyright 2013 ADP, Inc. Proprietary and Confidential Information.

Steve HardyVice-President, Corporate [email protected]@steevh

Karen BeamanCEO & FounderJeitosa Group [email protected]@karenbeaman