Rising complexity, compliance demands and global growth are driving up pressure on payroll and HR leaders, but leading organizations are finding ways to scale without increasing cost.
A recent Total Cost of Ownership (TCO) study conducted by PwC, sponsored by ADP, reveals that organizations are successfully managing the growing complexity of payroll and HR without increasing overall costs.
Drawing on data from 80 organizations across consumer markets, financial services, healthcare, manufacturing, technology and utilities, the study shows that while regulatory demands, global expansion, and workforce expectations have increased, the total cost of HR and payroll has remained stable at $1,793 per employee per year, indicating that companies are gaining more value through technology, automation, and operational transformation. Yet leading organizations are proving it’s possible to manage this complexity without increasing cost.
How leading organizations are reducing costs
What some of leading organizations are doing and more
- Consolidating systems and vendors to reduce complexity: improving integration, enabling seamless data sharing, and eliminating manual reconciliation.
- Using AI to automate service delivery and improve employee support.
- Deploying AI-powered service and chatbots: automating employee support and HR inquiries>.
These investments are delivering real, measurable outcomes:
- $56 saved per employee per year from consolidation
- 35% lower payroll costs at scale
- <5 tickets per week per 1,000 employees
- $41 saved per employee per year in compliance costs
- ~30-point higher compliance confidence
Modernizing payroll and HR is about more than technology; it’s about transforming cost, delivering efficiency, and improving the employee experience, all in an effort to ensure you’re driving positive outcomes for your organization.
Discover how organizations are achieving these outcomes with ADP.
