US payroll complexity still ranks among top 40% globally

Dive Brief

The 2017 Global Payroll Complexity Index (GPCI) from NGA Human Resources, an HR and payroll services firm, found that payroll complexity is down in the U.S. and Canada, though the U.S. remains in the top 40% for complexity globally.
The survey of 2,874 global payroll experts and consultants showed that 67% of respondents cited technical, HR and payroll updates as the biggest complexity challenge category. A summary of the report noted that zero-tolerance for non-compliance has increasingly become a secondary business tax.
Key conclusions of the study show that all organizations must provide payroll information to local government offices to determine each citizen’s social security and/or tax contribution; most employers run payroll once or twice a month; and every country and business category has cultural and regulatory factors and union agreements of their own that affect payroll.

Dive Insight:

The conversation about pay has become one of the more consistent topics of discussion in HR circles today. From CEO pay ratios to gender pay gaps, there's endless buzz around how employees are compensated and why they earn what they earn.

But HR is concerned about the practical, too — including the delivery of pay stubs without messing up. Organizations haven't been entirely successful with that, however, and the fallout even from just two payroll errors is cause for concern.

Luckily, there's innovation afoot. Automation (at least, for those who can afford it) has already made an impact, providing new platforms that take a lot of the pain out of ensuring hours are logged and properly accounted for. Other organizations have left behind the tradition of paychecks and electronic deposits in favor of 'cash cards,' which trade fewer expenses for the possibility that employees may not know about associated fees.

With change comes challenges, and companies moving to new solutions are certain to experience headaches. But the pay off? According to research, employees appreciate it when they have access to their benefits and compensation information online. And considering that pay still reigns in terms of what employees want from their job, it seems HR risks a lot by executing poorly.