четверг, 23 февраля 2012 г.

Outsourcing payroll makes economic sense says Cranfield School of Management.

M2 PRESSWIRE-20 September 2004-ADP: Outsourcing payroll makes economic sense says Cranfield School of Management(C)1994-2004 M2 COMMUNICATIONS LTD

RDATE:09202004

New research sponsored by ADP UK provides 'four step' benchmark process to help organisations review true value of outsourcing personnel administration.

Costs associated with payroll can be diminished substantially when companies use an outsourced service, says a new research study of UK based organisations written by Dr Michael Dickmann of Cranfield School of Management. The report drills down into the processes and mechanics of managing payroll and HR administration showing the true costs to a level of detail never revealed before.

Previously published research only looked at obvious, visible costs, whereas Dickmann has investigated further and deeper into the true cost of payroll. For instance, the report finds that 21% of departmental costs directly relate to the management time associated with software maintenance and quibbles on late payment. It is in these and other areas, the report maintains, that companies can really begin to make significant cost and efficiency savings by outsourcing to a specialist services company.

Dickmann found that existing academic material related to payroll does not help organisations make robust value judgements about the benefits of outsourcing.

"The motivation to outsource administrative activities," says Dickmann, "includes reduced costs and overheads, but also increased flexibility to manage the business and less distractions".

Dickman makes a clear distinction between direct and indirect costs associated with payroll and HR administration. Direct costs are more easily measured. In a price competitive sector where cost per pay slip, for instance, is often the only obvious measure between one supplier and another, deeper value assessments need to be considered more fully, argues Dickmann.

The study looks at existing models prevalent among HR departments in the UK, and defines a 'four step' process to help companies look at outsourcing HR administration as an option for them. The research, commissioned by ADP to fill in some of the knowledge gaps in how companies actually behave, has helped the company to identify and develop greater stretch in how an outsourced service can add value.

Said ADP's Head of Product Management, Roger Fullilove, "We commissioned Cranfield to identify and examine areas of payroll and HR cost not previously researched. The research has provided a sound, cost-based context for the development of our services. Armed with an accurate picture of these costs, not only in total, but in each of its sub-domains, we were able to identify the priority areas bearing the brunt of the expense burden. In turn we carefully scoped our offer to ensure significant in-roads into these costs. Without the insight provided by Cranfield we should not have been able to focus so exactly and our resulting offer would not have brought the very significant client value it now so clearly demonstrates."

The full report, "Shining a light into the 'Black Box' of Payroll - Determining the Economics of Outsourcing" is available by calling Tonya Thripp today on 0800 180 4994 or email her at makeadifference@adp-es.co.uk

About ADP

ADP is one of the largest independent computing services firms in the world, with over GBP4.3 billion in revenues. ADP Employer Services, a division of ADP, Inc., is the world's leading provider of payroll and HR management services helping its 500,000 clients efficiently manage their internal administrative processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Internet-based outsourcing services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: managed payroll (BPO), best practice payroll bureau and personnel administration, and HR management. For more information see www.europe.adp.com

About Cranfield

Cranfield School of Management is a world-class university business school, renowned for its strong links with industry and business. It is committed to providing practical management solutions through a range of activities including postgraduate degree programmes, management development, research and consultancy. It runs a series of successful programmes for owner managers and its flagship MBA programme is ranked No 1 in the UK and No 11 in the world by The Economist Intelligence Unit. The website address is: www.som.cranfield.ac.uk/som/"http://www.som.cranfield.ac.uk/som/

CONTACT: Simon Larter/Dawn Flynn, Motive PRTel: +44 (0)118 988 0230e-mail: ADP@motivepr.comClare Lamb, Marketing Manager, ADP Employer ServicesTel: +44 (0)1784 429 393e-mail: Clare.Lamb@adp-es.co.uk

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