Revealing the iceberg of hidden costs of payroll, HR

Tracking total expenses across functions a challenge
By Sarah Terrelonge
|Canadian HR Reporter|Last Updated: 09/10/2012

Do you know how much your company is spending on HR, payroll and benefits administration? Many companies are spending much more than they realize.

Many employers underestimate the true expense — or total cost of ownership (TCO) — of processing and managing payroll, time and attendance, HR data administration and health and benefits — by more than 60 per cent — according to a 2012 study by consulting firm PwC Canada and payroll, HR and benefits administration service provider ADP Canada.

Exposing the Hidden Cost of Payroll and HR Administration: A Total Cost of Ownership Study was based on data collected from 125 organizations, ranging in size from 50 employees to more than 5,000, to examine the issue of hidden costs and TCO across four core business functions: payroll, time and attendance management, HR data administration, and health and benefits administration.