CloudPay’s Global Payroll Efficiency Index (PEI) sheds light on the evolving landscape of global pay cycles, highlighting improvements in data accuracy and the growing role of technology in payroll operations.
- Decreasing Errors: Issues per 1000 payslips have declined globally for the second consecutive year, with a 35% reduction compared to five years ago.
- Data Input Issues: While data input issues have slightly declined, they still account for nearly two-thirds of all payroll mistakes.
- Room for Improvement in the U.S.: First-Time Approvals in the U.S. are at 69%, indicating opportunities for enhancing data accuracy and workflow.
Insights from Grant Tasker: Grant Tasker, Senior Director of Global Payroll at CloudPay, emphasizes the role of technological innovation in improving accuracy but highlights the need for further automation to reduce data input errors.
Key Performance Indicators (KPIs): CloudPay’s PEI report focuses on KPIs like First-Time Approvals (FTA), Data Input Issues (DII), Issues Per 1000 Payslips (I/1000), Calendar Length (CAL), and Supplementary Impact (SI) to provide comprehensive insights into payroll efficiency.
The New Payroll Cycle: Payroll cycles are extending, with a shift towards monthly pay cycles and the adoption of Earned Wage Access solutions, allowing more time for payroll teams to ensure accuracy.
The Impact of AI: While AI adoption in payroll is not widespread, it has the potential to further enhance payroll efficiency and elevate it to a strategic business function.
As technology continues to drive improvements in global payroll operations, organizations must leverage automation and AI to reduce errors, enhance data accuracy, and unlock greater efficiencies across the payroll process.
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