{"id":3778,"date":"2019-02-19T19:11:55","date_gmt":"2019-02-19T19:11:55","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3778"},"modified":"2022-09-05T16:37:48","modified_gmt":"2022-09-05T16:37:48","slug":"organizational-alignment-of-the-payroll-process","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2019\/02\/organizational-alignment-of-the-payroll-process\/","title":{"rendered":"Organizational Alignment of the Payroll Process"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

Historically, the alignment of the Payroll function<\/a> has been debated among HR and Finance, and in some cases Treasury, as to where it belongs. Some argue that synergies with HR provide for the best fit, others state that Payroll is a Finance function because it requires analytical skills consistent with higher level accounting responsibilities, and others place the function in Treasury, often as a response to a problem or issue when Payroll was managed in either HR or Finance.\u00a0\u00a0 With the rise of Shared Services during the past 20 years, with designs that include multi-functional Shared Services, Global Shared Services, Global Business Services, and Integrated Business Services, the organizational alignment possibilities for the Payroll Process have increased dramatically.\u00a0 <\/span><\/p>\n

Payroll is a process that, by definition, touches every employee in a very significant way.\u00a0 With complications that include local and federal regulations, tax withholding requirements, garnishment processing, and expatriate employee complexities, having a high-quality payroll process are critical to the success of any company, regardless of where the Payroll process reports.\u00a0 The question is whether or not there is an organizational alignment option that best supports superior outcomes for the Payroll Process at your company.<\/span><\/p>\n

iPollingTM<\/sup> Results Review<\/strong><\/span><\/p>\n

Recently, Peeriosity\u2019s iPollingTM<\/sup> was used by understanding the range of organizational alignment options member companies use for the Payroll Process, and whether or not changes to the organizational alignment for Payroll are expected within the next few years. \u00a0Responses were posted in real-time, with visibility to company responses available to all Peeriosity members, allowing for direct communication with peers using Peeriosity\u2019s integrated Peer MailTM<\/sup> capabilities.<\/span><\/p>\n

To the question of what is the current organizational alignment of the Payroll Process, 48% responded that the Payroll Process reports into Finance Shared Services, with 24% responding that the Payroll Process reports into HR Shared Services<\/a>, and 14% selecting Global Business Services.\u00a0 Here are the details:\u00a0 <\/span><\/p>\n

\"iPolling:\u00a0<\/span><\/p>\n

To the question of whether or not a change in organizational alignment for the Payroll Process was expected within the next one to three years, 61% indicated that such a change was not likely, with only 13% indicating a change was either likely or very likely.\u00a0 Interestingly, 26% responded with \u201cnot sure\u201d, suggesting that for a sizable number of companies, changes to the organizational alignment for the Payroll Process are still very much a possibility.\u00a0 \u00a0<\/span><\/p>\n

\"iPolling; Here are some comments from responding companies:<\/span><\/p>\n