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Contents

Executive Summary
Demographics

Operations

Outsourcing

Accuracy, efficiency metrics
Service delivery

Nextgen

Employee experience

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47Deloitte Global Payroll Benchmarking Survey | Executive summary

EXecutive Summary

Overview

The Deloitte Global Payroll Benchmarking Survey was open to Deloitte clients, American Payroll Association (APA) members, Global Payroll Management Institute (GPMI) subscribers, APA
Congress attendees, and other Deloitte alliance partners. The Survey was takenthrough the lens of three geographic levels with three distinct sections offered. Respondents could
choose any combination of global, region, and country. For each grouping selected, respondents were giventhe opportunity to answer all questions foreach individual grouping where
thney had employees, unless specified otherwise. Respongents could also choose to just take the demographic section or could include one or both of the other two sections. This years

survey focused on questions associated with payroll across seven Categories.

Survey could have been taken through the lens of

Globally 才
Regionally Q
II SA

Three Sections could have been taken

Demographics (Organization, Geography,
Ingustry Employee Population Size ang Technology)，

Benchmarking (Operations, Outsourcing，
Accuracy efficiency and metrics)

Innovation (Service Delivery Next-gen Technology
and Employee experience).

03

Within the 3 distinct sections, data points were captured across

归 时

时

Demographics Operations Outsourcing
Accuracy, efficiency， Service delivery Next-gen
and metrics

Embployee experience

Note: AjHf percentaSses 站Sraphs are shown relative to 轨e respondents per 如egiven 9uestion.
Percentases mmay not ofways sum to 100 due io rounding.Deloitte Global Payroll Benchmarking Survey | Executive summary

EXecutive Summary

(Continued)

This years survey captured responses from more than 750 distinct organizations across 55 countries spanning Several different industries, ranging in employee size ffom a few hundred to
Several hundreg thousand, ang included over 100 questions. Explore the results of the Deloitte Global Payroll Benchmarking Survey. Where logical, weve broken down the responses by
industry geography employee population size ang organizational structure to make the gata relevant for different companies, providing insights into the similarities and differences

amongthem. One keytheme fromthe survey from a global payroll perspective is the growing importance of developing a global payroll strategy (e.g. 88 percent of respondents either
have a payroll strategy or have plans to develop a strategy).

Seventy three percent oforganizations outsource Some aspect of payroll and while organizations are generally Satisfied with their current third-party payroll providers, they believe there
are many areas forimprovements from compliance to technology capabilities:

The top five areas for improvement:

有于和 Self-Service ( rmSNA\\_ Reporting ee
p / y Capabilities ADC” ) capabilities By
SN Adoption

Ang although many organizations outsource, the need to retain payroll expertise in-house remains high. Thirty percent of respondents who outsource report manual entry /loading
payrollinputs and entering manual adjustments as two of the mosttime-consuming aspects of payroll processing. The good news is manual loading inputs and improving accuracy limiting

the need for adjustments are two of the areas ripe for next-generation technology. Leveraging next-generation technology can free Up payroll resources to focus on more strategic
activities and process improvement.

Organizations understang the importance of having a global payroll strategy that includes Sourcing (e.g. consolidated 3rd party payroll providers), an internal service delivery model
regardless oftheir Sourcing strategy, and ropust technnologies, including next-generation technologies such as robotic process automation (RPA. Athough many organizations stil domt yet
have complete visibility into their global payroll operations, they are starting to see a path and are getting closer.

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