Key Findings & Highlights:
With payroll now a critical, core element in the employee experience, global footprints creeping, and compliance risks rapidly intensifying, organizations of every size are keenly focused on payroll as a key area of investment and modernization moving ahead.
The aftereffects of the pandemic further strained and exposed operating models up and down market, leaving many firms across sectors realizing investments to futureproof payroll operations for greater resiliency, and strategic value can no longer wait. Thus, payroll services adoption is being driven by the need to ‘futureproof’ payroll operations globally, providing a modern employee experience, and leveraging digital technology to enhance payroll outcomes: timely, accurate, compliant.
Managed payroll service offerings are no longer exclusively offered by traditional ‘pure payroll’ providers, and are now more commonly offered by three primary vendor types (as detailed in the slides following) including: traditional managed payroll providers, HRO/HR BPaaS providers, and HCM technology providers.
Offerings are commonly being scaled to meet a wide range of buyers, sectors and geographies, with the midsized buyer currently the largest adopter. Providers are increasingly positioning payroll service offerings in support of multi-national footprints as platform-based solutions, incorporating technology and services within a single vendor offering globally.