2023 Payroll Proficiency Index
How to excel in multi-country payroll
Payroll in Europe is notoriously complex. So, we asked over 4,500 companies spread over 16 countries to assess various drivers that make payroll either more difficult or easier. The result: a Payroll Proficiency Index that will help you to make the right choices.
Executive Summary
“What makes a company proficient in payroll? Are there any differences between countries? And if so, why do some perform better? You’ll find the answers to these key questions in our 2023 Payroll Proficiency Index. On this website, you can browse through the results for 16 countries, while getting clarifications from seasoned payroll experts. Additionally, you’ll discover how SD Worx can boost your own payroll proficiency.”
Michael Custers, Chief Marketing Officer at SD Worx
5 key takeaways
Legislation remains the main obstacle for payroll proficiency
Nearly 3 in 10 companies state that the socio-legal legislation in their countries has a (very) negative impact on their ability to successfully process their payroll. Particularly HR professionals in France and Belgium dread the overwhelming legal complexity.
Majority says outsourcing makes payroll (much) easier
Of all companies that outsource their payroll, less than 10% report negative experiences. In particular Belgian, UK, French and Dutch HR teams praise the assistance of external payroll partners, while Swiss, Swedish and Danish companies are yet to be convinced.
Digitalisation improves the costs of payroll for 2 in 3 companies
Norway, Sweden, Finland and Denmark favour SaaS, the Netherlands lead the way in cloud-based solutions, and overall, technology has the biggest positive impact on data collection and integration. But whatever your strategy, digitalisation can be a true cost saver for payroll.
The most complex phase in payroll? Administration of time and attendance
Out of 19 payroll tasks, European companies are least proficient in dealing with ‘time and attendance’, including time worked, overtime, holidays, and illness. Only in Germany is this task considered relatively easy. Next on the blacklist: data collection and integration.
Index per country
Austria
Belgium - Dutch
Belgium - French
Croatia
Denmark
Finland
France
Germany
Ireland
Italy
Netherlands
Norway
Poland
Spain
Sweden
Switzerland
United Kingdom
Index per country
Austria
Belgium - Dutch
Belgium - French
Croatia
Denmark
Finland
France
Germany
Ireland
Italy
Netherlands
Norway
Poland
Spain
Sweden
Switzerland
United Kingdom
How the Payroll Proficiency Index works
Over 4,500 companies assessed the impact of 6 payroll drivers: legislation, reward, technology, capability, workforce and partner. Every assessment took 19 payroll tasks into account that HR teams have to deal with during the pre-calculation, calculation and post-calculation of salaries. The resulting ranking presents average scores per country. The higher the score, the more proficient companies in that country are.
What SD Worx can do for you
Discover our local and international payroll solutions
Local payroll
With over 75 years of experience and proprietary payroll engines in 9 countries, SD Worx offers scalable, integrated and cloud-based payroll solutions for all companies looking to keep employee engagement and loyalty high.
International payroll
Take the hassle out of multi-country European payroll and focus on your growth. With a service package for every payroll need, including leading technology and local expertise, we can get you on track in no time.
Core HR Solutions
Keep up with core HR solutions that make organisational and employee data transparent and accessible to your HR department, line managers and employees in a user-friendly, compliant way.
Legal compliance
Flawless payroll and legal compliance are two sides of the same coin. But SD Worx works also helps with other legal and tax issues that stem from labour laws and regulations. You can count on our legal expertise in every country.
Reward & compensation
The trick to creating attractive salary packages that exceed employee expectations and meet all your financial requirements: flexible reward and budgeting tools, deep expertise and comprehensive benchmark data.