What drives payroll proficiency?

Measuring the impact of 6 crucial payroll aspects

Whether your payroll runs smooth or not depends on different aspects. How complex is the legislation in the country you’re operating in, which types of remuneration do you offer, and what does your workforce look like? Then there’s also the question of available payroll tech, in-house expertise and payroll partners. Discover how big an impact these 6 factors have on payroll proficiency.

Travel and expense management

Payroll partners have most positive impact

According to the 1,341 HR professionals and entrepreneurs who participated in the 2022 Payroll Proficiency Index (PPI), payroll partners tend to make their life (much) easier. Mainly Belgian and Dutch companies claim their payroll proficiency benefits a lot from external assistance.

Unsurprisingly, the legislative landscape is found at the other end of the spectrum. This driver is making payroll handling (much) more difficult for about 1 in 3 European HR teams. In Belgium and France, two infamously complex countries for payroll, the numbers are much higher.

Other striking results include that technological solutions have the most positive impact in the UK, that German companies aren’t too satisfied about their own payroll capabilities and that the workforce composition plays a minor role in payroll proficiency.

Looking into 6 drivers for payroll proficiency

Looking into 6 drivers for payroll proficiency

Legislation

The last two years have been a real rollercoaster for payroll officers. One legislative change after the other made an already labour-intensive responsibility even more complex. The bottom line: payroll has become a job for seasoned legal experts. That’s not news, but what you probably don’t know is which particular legal issues deserve the most attention in Belgium, France, Germany, the Netherlands and the UK.

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Reward

The goal of effective payroll management is quite obvious: paying your employees correctly and on time. But not every European employee gets paid the same, meaning some employees receive payments more frequently, some can compose their own salary package, some receive multiple perks, etc. The way this is arranged either complicates or facilitates payroll handling in different countries. Get the ins and outs.

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Workforce

This not only concerns the number of employees you need to pay, but also the composition of your workforce. For example, team A might employ 10 communication experts telling others about the difficulties of payroll, while team B has a large mix of permanent employees, part-time workers, freelancers and students, with a high degree of internal mobility. Payroll for both teams will be very different.

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Technology

Automating and integrating the various payroll processes that comprise the pre-calculation, calculation and post-calculation of salaries can lead to significant efficiency gains. Which subprocesses benefit most from technological solutions, where are cloud-based systems most common, and how does payroll tech impact the total cost of payroll? Our 2022 PPI sheds light on these and other questions on technology.

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Capability

You’ve probably read it about a hundred times in the last few months alone: payroll is C-O-M-P-L-E-X. That doesn’t make it less true. Having the right expertise, skills and knowledge at hand is no longer a given in every company – big or small. And finding new payroll wizards in an increasingly tight labour market is just as hard. Find out which countries are most satisfied about their own capabilities and why.

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Partner

Many artists have sung the lyrics ‘One is the loneliest number’. And although they probably weren’t singing it with payroll in mind, it aptly summarises one of the key issues: alone, you can only do and know this much. That’s why many companies turn to payroll partners for help. Check which 5 payroll tasks are best suited for outsourcing and which countries are most willing to take on a sidekick to boost payroll proficiency.

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